Senate
of III? ^tvri'tai-p
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
H AUG 23 P 2 -19
SENATE
S.B No. 1218
RHCEIVED 3V.
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
GRANTING THE ROMBLON ELECTRIC COOPERATIVE INC. A FRANCHISE TO 
CONSTRUCT, INSTALL, ESTABLISH, OPERATE, OWN, MANAGE AND MAINTAIN 
DISTRIBUTION SYSTEMS FOR THE CONVEYANCE OF ELECTRIC POWER TO THE 
END-USERS IN THE MUNICIPALITIES OF BANTON, CORCUERA AND 
CONCEPCION, PROVINCE OF ROMBLON, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Republic Act No. 9136 otherwise entitled the Electric Power Industry Reform Act 
(EPIRA), among others, declared the policy of the State, (a) To ensure and accelerate the 
total electrification of the country; and (b) To ensure the quality, reliability, security and 
affordability of the supply of electric power.
This bill seeks to provide a electric power distribution system to the people of the 
municipalities of Banton, Concuera and Concepcion, all within the Province of Romblon. 
Furthermore, it seeks to require standards that the grantee must attain in order to secure 
an effective partnership between the Government and the grantee, as well as maintain a 
high benchmark for the provided facility.
On June 14, 1989, Romblon Electric Cooperative, Inc. (ROMELCO) was organized 
and registered with the National Electrification Administration (NEA) with a mandate to 
perform rural electrification in the province of Romblon on an area coverage basis. 
Thereafter, on July 11, 1991 and November 14, 1994, ROMELCO was granted franchise 
to operate electric light and power services in the island of Romblon and Sibuyan Island 
respectively covering four (4) municipalities out of the seventeen (17) municipalities 
distributed in seven (7) islands composing the Province of Romblon. Since its 
organization, ROMELCO has been very successful in its electrification program, energizing 
100% of the four (4) municipalities, 100% of the sixty six (66) barangays, 98% of the 
sitios and 100% of the household connections out of the 27,871 households within its
1


franchise area. Upon the request of the LGU of the Island municipalities of Banton, 
Corcuera and Concepcion, ROMELCO's electrification service has been extended to the 
said municipalities through the sitio electrification program with the aim of achieving the 
total electrification envisioned by this government, with the electric consumers in the said 
island becoming member-consumer-owners of ROMELCO.
To ensure the continuous delivery of electric service of ROMELCO to the said island 
municipalities, ROMELCO seeks to fully integrate them with the franchise area of 
ROMELCO and for the member consumer-owners to be represented in the management, 
particularly, the Board of Directors of ROMELCO. ROMELCO as applicant posessess the 
technical, financial and instititutional capabilities to perform the electrification program in 
the said municipalities in a sustainable manner mindful of the regulatory and 
environmental requirements of the EPIRA and other applicable laws.
RISA HONHVEROS U
Senator


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S.B. No. 1218
ifiiate
of ti}? i^>rrrptnrip
'22 AUG 23 P2:19
RHCEIVED BV
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
GRANTING THE ROMBLON ELECTRIC COOPERATIVE INC. A FRANCHISE TO 
CONSTRUCT, INSTALL, ESTABLISH, OPERATE, OWN, MANAGE AND MAINTAIN 
DISTRIBUTION SYSTEMS FOR THE CONVEYANCE OF ELECTRIC POWER TO THE 
END-USERS IN THE MUNICIPALITIES OF BANTON, CORCUERA AND 
CONCEPCION, PROVINCE OF ROMBLON, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
1 
SECTION 1. Nature and Scope of Franchise. - Subject to the provisions of the
2 
Constitution and applicable laws, rules and regulations, there is hereby granted to the
3 
Romblon Electric Cooperative Inc., hereunder referred to as the grantee, its successors
4 
or assigns, a franchise to construct, install, establish, operate, lease, own, manage and
5 
maintain for commercial purposes and in the public interest, distribution systems for the
6 
conveyance of electric power to the end-users in the municipalities of Banton, Corcuera
7 
and Concepcion, Province of Romblon.
8 
Sec. 2. Manner of Operation of Facilities. - All distribution facilities, lines and
9 
systems for electric services installed, established, operated, leased, owned or managed
10 
by the grantee, its successors or assigns, shall be operated and maintained at all times
11 
in a superior manner, and it shall be the duty of the grantee, its successors or assigns,
12 
whenever required to do so by the Energy Regulatory Commission, hereinafter referred
13 
to as the ERC, or its legal successor, or the Departmernt of Energy, hereinafter referred
14 
to as the DOE, or its legal successor, or any other government agency concerned, to
15 
modify, improve and change such facilities or systems in such manner and to such extent
16 
as the progress in science and technology, and improvements in the electric power
17 
distribution services may render reasonable and proper.
18 
Whenever practicable and for purposes of maintaining order, safety and aesthetics
19 
along highways, roads, streets, alleys or rights-of-way, the grantee may allow the use of
20 
free spaces in its poles, facilities or rights-of-way by Interested parties upon reasonable
21 
compensation to the grantee considering cost incurred to accomodate and administer the
1


1 
use of the grantee's facilities by such parties. The ERC shall shall decide in case of dispute
2 
or disagreement between parties.
3 
Sec. 3. Authority of the Energy Regulatory Commission (ERC). - The grantee shall
4 
secure from the ERC, or any other government agency which has jurisdiction over the
5 
operation of the herein grantee, the necessary certificates of public onvenience and
6 
necessity and other appropriate permits and licenses for the construction and operation
7 
of its electric power distribution system. The ERC, or any government agency having
8 
jurisdiction over the grantee's operation, may allow the grantee to expand to surrounding
9 
areas, not covered by its franchise area, whenever public interest so requires.
10 
Sec. 4. Ingress and Egress. - For the purpose of erecting and maintaining poles or
11 
other supports for said wires or other power conductors for the purpose of laying and
12 
maintaining underground wires, cables or other conductors, it shall be lawful for the
13 
grantee, its successors or assigns, with the prior approval by the Department of Public
14 
Works and Highways (DPWH) or by the local government unit (LCD) concerned, as may
15 
be appropriate, to make excavations or lay conduits in any of the public places, highways,
16 
streets, lanes, alleys, avenues, sidewalks or bridges of said province, cities and/or
17 
municipalities; Provided, however, that a public place, highway, street, lane, alley, avenue,
18 
sidewalk or bridge disturbed, altered or changed by reason of erection of poles or other
19 
supports or the underground laying of wires, other conductors or conducits, shall be
20 
repaired and replaced in workmanlike manner by said grantee, its successors or assigns,
21 
in accordance with the standards set by the DPWH or the LGU concerned.
22 
Sec. 5. Responsibility to the Pubiic. - The grantee shall supply electricity to its
23 
captive market in the least costly manner. In the interest of the public good and as far as
24 
feasible and whenever required by the ERC, the grantee shall modify, improve or change
25 
its facilities, poles, lines, systems and equipment for the purpose of providing efficient
26 
and reliable service and reduced electricity costs. The grantee shall charge reasonable
27 
and just electric power rates for its services to all types of consumers within its franchised
28 
areas in order that business and industries shall be able to compete.
29 
The grantee shall have the obligation to provide open and non-discriminatory
30 
access to its electric power distribution system and services for any end-user within its
31 
franchise area consistent with Republic Act No. 9136, otherwise known as the "Electric
32 
Power Industry Reform Act of 2001". The grantee shall not engage in any activity that
33 
would constitute an abuse of market power such as, but not limited to unfair trade
34 
practices, monopolistic schemes, and any other activities that would hinder
35 
competitiveness of business and industries.


1 
Sec. 6. Rates for Services. - The retail rates to its captive market and charges for
2 
the distribution of electric power by the grantee to its end user shall be regulated by and
3 
subject to the approval by the ERC or its legal successor.
4 
The grantee shall identify and segregate in its electricity bill to the end-users the
5 
components of the retail rate pursuant to Republic Act No. 9136, unless otherwise
6 
amended. Such rates charged by the grantee to the end-users shall be made public and
7 
transparent. The grantee shall implement lifeline rate to marginalized end-users as
8 
mandated under Republic Act No. 9136.
9 
Sec. 7. Promotion of Consumer Interests. - The grantee shall establish a consumer
10 
desk that would handle consumer complaints and ensure adequate promotion of
11 
consumer interests. The grantee shall act with dispatch on all complaints brought before
12 
it.
13 
Sec. 8. Right of Government. - A special right is hereby reserved to the President
14 
of the Philippines, In times of war, rebellion, public peril, calamity, emergency, disaster
15 
or disturbance of peace and order, to temporarily take over and operate the stations or
16 
facilities of the grantee, to temporarily suspend the operation of any station or facility in
17 
the interest of public safety, security and public welfare, or to authorize the temporary
18 
use and operation thereof by any agency of the government, upon due compensation to
19 
the grantee, for the use of said stations or facilities during the period when they shall be
20 
so operated.
21 
Sec. 9. Right of Eminent Domain. - Subject to the limitations and procedures
22 
prescribed by law, the grantee is authorized to exercise the right of eminent domain
23 
insofar as it may be reasonably necessary for the efficient maintenance and operation of
24 
services, the grantee is authorized to install and maintain poles, wires and other facilities
25 
over and across public property, including streets, highway, forest reserves and other
26 
similar property of the Government, its branches or any of its instrumentalities. The
27 
grantee may acquire such private property as Is actually necessary for the realization of
28 
purposes for which this franchise is granted: Provided, that proper condemnation
29 
proceedings shall have been instituted and just compensation paid.
30 
Sec. 10. Warranty in Favor ofNationai and Locai Governments. - The grantee shall
31 
hold the national, provincial and municipal governments of the Philippines free from all
32 
claims, accounts, demands or actions arising out of accidents or injuries, whether to
33 
property or to persons, caused by the construction, installation, operation and
34 
maintenance of the electric power distribution system of the grantee.
35 
Sec. 11. Liabiiity to Damages. - The grantee shall be liable for any injury and
36 
damage arising from or caused by accident to persons and property by reason of any


1 
defective construction under this franchise or of any neglect or omission to keep its pole
2 
and wires in safe condition.
3 
Sec. 12. Sale, Lease, Transfer, Usufruct, etc. - The grantee shall not lease, transfer,
4 
grant the usufruct of, sell nor assign this franchise or the rights and privileges acquired
5 
hereunder to any person, firm, company, corporation or other commercial or legal entity,
6 
nor merge with any other corporation or entity, nor shall the controlling interest of the
7 
grantee be transferred, whether as a whole or in parts and whether simultaneously or
8 
contemporaneously, to any such person, firm, company, corporation or entity without the
9 
prior approval by the Congress of the Philippines: Provided, that Congress shall be
10 
informed of any lease, transfer, grant of usufruct sale or assignment of franchise or the
11 
rights or privileges acquired within sixty (60) days after the completion of said transaction:
12 
Provided, further, that failure to report to Congress such change of ownership shall render
13 
the franchise ipso facto revoked: Provided, finally, that any person or entity to which this
14 
franchise is sold, transferred or assigned, shall be subject to the same conditions, terms,
15 
restrictions and limitations of this Act.
16 
Sec. 13. Equality Clause. - Any advantage, favor, privilege, exemption, or immunity
17 
granted under existing franchises, or may be granted shall, upon prior review and
18 
approval by Congress, become part of previuosly granted electric power distribution
19 
franchises: Provided, however, that the foregoing shall neither apply to not affect
20 
provisions concerning territory covered by the franchise: Provided, further, that the
21 
foregoing shall not apply to the sale, lease, transfer, grant of usufruct or assignment of
22 
legislative franchises as provided above.
23 
Sec. 14. Term of Franchise. - The franchise shall be for a term of twenty-five (25)
24 
years from the date of effectivity of this Act. This franchise shall be deemed ipso facto
25 
revoked in the event that the grantee fails to operate continuously for two (2) years.
26 
Sec. 15. Applicability Clause. - The grantee shall comply with and be subject to
27 
the provisions of Commonwealth Act No. 146, as amended, otherwise known as the
28 
"Public Service Act" and Republic Act No. 9136.
29 
Sec. 16. Reportoriai Requirement. - The Grantee shall submit an annual report to
30 
the Congress of the Philippines, through the Committee on Legislative Franchises of the
31 
House of Representatives and the Committee on Public Services of the Senate, on its
32 
compliance with the terms and conditions of the franchise and on its operations on or
33 
before April 30 of the succeeding year.
34 
Sec. 17. Penalty Clause. - Any grantee who fails to submit the annual report to
35 
Congress would be fined five hundred (PhpSOO.OO) per working day of non-compliance.
36 
The fine would be collected by the ERC from the said delinquent franchise grantee


1 
separate from the reportorial penalities imposed by the ERC. The collected funds shall
2 
accrue to the monitoring fund of the ERC in line with its supervisory and regulatory
3 
functions. The reportorial compliance certificate issued by Congress shall be required
4 
before any application for permit or certificate is accepted by the ERC.
5 
Sec. 18. Separability Clause. - If any of the sections or provisions of this Act is
6 
held invalid, all other provisions not affected thereby shall remain valid.
7 
Sec. 19. Repeatability and Non-exdusivity Clause. - This franchise shall be subject
8 
to amendment, alteration or repeal by the Congress of the Philippines when the public
9 
interest so requires and shall not be interpreted as an exclusive grant of privileges herein
10 
provided for.
11 
Sec. 20. Publication. - This Act shall be published, through the initiative of the
12 
grantee, fifteen (15) days after this Act is signed by the President of the Philippines or
13 
has lapsed into law.
14 
Sec. 21. Effectivity Clause. - This Act shall take effect fifteen (15) days from the
15 
date of its publication in at least two (2) newspapers of general circulation in the
16 
Philippines.
Approved,