Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. 10888
Introduced by  
HON. EDGAR M. CHATTO, First District, Bohol 
HON. MARIA VANESSA C. AUMENTADO, Second District, Bohol 
HON. KRISTINE ALEXIE BESAS-TUTOR, Third District, Bohol  
EXPLANATORY NOTE 
This bill seeks to grant BOHOL LIGHT COMPANY, INC. (BLCI) a franchise to 
acquire, establish, operate, and maintain, for commercial purposes and in the public 
interest, a distribution system for the conveyance of electric power to end users in 
Tagbilaran City, Province of Bohol. 
BLCI currently has a franchise granted by the National Electrification 
Commission that will expire on 19 October 2025 next year. BLCI now seeks the grant of a 
legislative franchise from Congress to allow BLCI to continue its operations as a 
distribution utility in the franchise area.    
BLCI is currently owned by a consortium composed of SPC Power Corporation 
(SPC), SPC Light Company, Inc., ARCC Investments Inc., Pure and Pam Inc., and Mr. 
Joven T. Uy (the “SPC Consortium”), and by the Provincial Government of Bohol (PGB), 
which own seventy percent (70%) and thirty percent (30%), respectively. The SPC 
Consortium now wishes to focus on other endeavors and has agreed to the offer of the 
Prime Strategic Group to sell its entire seventy percent (70%) shareholding to 
Primelectric Holdings Inc. (PHI). The shares of the SPC Consortium were offered first to 
the PGB but the PGB, through its Sangguniang Panlalawigan, has waived its right to 
acquire the shares of the SPC Consortium in BLCI. The PGB will continue to maintain its 
thirty percent (30%) shareholdings in BLCI. 
PHI is a wholly owned subsidiary of Prime Strategic Holdings Inc. (PSHI), and is 
a sister company of MORE Electric and Power Corporation (MORE Power) which is the 
distribution utility in Iloilo City. PHI was established as a holding company for the 
power distribution industry investments of PSHI. Once PHI takes over the control of 
BLCI, it will allow BLCI to be managed and led by the same management group and 
technical team behind MORE Power. It will also be backed up by the financial resources 
of PSHI, the same Group that owns or controls publicly listed companies: Bloomberry 
Resorts Corporation (BLOOM), Manila Water Company, Inc. (MWC), and Apex Mining 
Company Inc. (APX). This Group has demonstrated the capability to turn around the 
decrepit and neglected distribution system in Iloilo City and was able to quickly stabilize, 
rehabilitate, upgrade and expand its operating capacity and service. Systems loss has 
been reduced, more than 38,000 new customers have been added to the consumer base 
as of date, and the power cost has been brought down in that area within only two (2) 
September 10, 2024
12:53 pm


years from its takeover of the decrepit and neglected distribution facilities. The local 
government officials in Iloilo City and adjacent city and municipalities have attested to 
and endorsed the good deeds and accomplishments of this Group.  
The good service record of MORE Power encouraged the local government units 
of the surrounding municipalities around Iloilo City to seek the expansion of MORE 
Power’s franchise to include the Municipalities of Alimodian, Leganes, Leon, New 
Lucena, Pavia, San Miguel, Santa Barbara and Zarraga, all in the 2nd District of Iloilo, 
and the Municipalities of Anilao, Banate, Barotac Nuevo, Dingle, Duenas, Dumangas and 
San Enrique and the City of Passi, all in the 4th District of Iloilo. Acting on this popular 
clamor, Congress passed Republic Act No. 11918, an amendment of the franchise of 
MORE Power to expand its coverage to the said Municipalities and the City. The 
Supreme Court has recently reported its decision affirming the validity of RA 11918 
declaring that an electric cooperative cannot claim an exclusive franchise as it would 
violate the Constitution.   
PSHI, through PHI, also controls Negros Electric and Power Corp. (NEPC), which 
was recently granted a franchise to be the distribution utility in the Cities of Bacolod, 
Silay, Talisay, and Bago and in the Municipalities of Murcia and Don Salvador 
Benedicto, all in the province of Negros Occidental. NEPC is a joint venture of PHI with 
the Central Negros Electric Cooperative Inc. (CENECO) to acquire, rehabilitate, expand 
and operate the distribution system in the franchise area. There CENECO recognized its 
limitations and the capability of the PSHI Group to immediately turn around and 
rehabilitate the power distribution in Bacolod City and Central Negros. PHI will own 
seventy percent (70%) of NEPC while CENECO will own thirty percent (30%) of NEPC. 
Considering that BLCI possesses the required capability, through the PSHI 
Group, it is apt for the Congress to grant Bohol Light Company, Inc. the franchise to 
acquire, establish, operate, and maintain, for commercial purposes and in the public 
interest, a distribution system for the conveyance of electric power to end users in 
Tagbilaran City, province of Bohol. 
The Support of the Members of Congress for the prompt and timely passage of 
this measure is earnestly sought. 
HON. EDGAR M. CHATTO 
HON. MARIA VANESSA C. 
AUMENTADO  
HON. KRISTINE ALEXEI B. TUTOR 


 Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. 10888
Introduced by  
HON. EDGAR M. CHATTO, First District, Bohol 
HON. MARIA VANESSA C. AUMENTADO, Second District, Bohol 
HON. KRISTINE ALEXIE BESAS-TUTOR, Third District, Bohol  
AN ACT GRANTING BOHOL LIGHT COMPANY, INC. A FRANCHISE TO 
ACQUIRE, ESTABLISH, OPERATE, AND MAINTAIN, FOR COMMERCIAL 
PURPOSES AND IN THE PUBLIC INTEREST, A DISTRIBUTION SYSTEM 
FOR THE CONVEYANCE OF ELECTRIC POWER TO THE END USERS IN 
THE CITY OF TAGBILARAN, PROVINCE OF BOHOL, AND ENSURING THE 
CONTINUOUS AND UNINTERRUPTED SUPPLY OF ELECTRICITY IN THE 
FRANCHISE AREA 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SEC. 1. Nature and Scope of Franchise. - Subject to the provisions of the 
Constitution and applicable laws, rules and regulations, there is hereby granted to Bohol 
Light Company, Inc., hereunder referred to as the Grantee, its successors or assignees, a 
franchise to construct, install, establish, operate, own, manage and maintain in the 
public interest and for commercial purposes, a distribution system for the conveyance of 
electric power to end users in the City of Tagbilaran, Province of Bohol. 
As used in this Act, distribution system refers to the system of wires and 
associated facilities including subtransmission lines belonging to or used by a franchised 
distribution utility extending between the delivery point on the national transmission 
system or generating facility and the metering point or facility of the end-user. 
SEC. 2. Manner of Operation of Facilities. — All electric distribution 
facilities, lines and systems for electric services installed, owned, maintained, operated, 
or managed by the Grantee shall be operated and maintained at all times in a superior 
manner. It shall be the duty of the Grantee, its successors or assignees, to continuously 
improve its facilities and employ the latest technology and innovations that promote 
efficiency and which is beneficial to consumers. It shall comply with the standards set by 
the Energy Regulatory Commission (ERC) such as those found in the Philippine 
Distribution Code, its resolutions, and other issuances. The Grantee shall also 
implement measures required by the ERC, the Department of Energy (DOE), or their 
legal successors, or any other government agency concerned, to modify, improve, 
upgrade and change such facilities, systems or the management and maintenance 
thereof. 


Whenever practicable and for purposes of maintaining order, safety, and 
aesthetics along highways, roads, streets, alleys, or easements, the Grantee may allow the 
use of its poles, facilities, or easements by interested parties upon the payment of 
reasonable compensation to the Grantee, considering costs incurred to accommodate 
and administer the use of the Grantee’s facilities by such parties. The ERC shall resolve 
cases of disputes or disagreements between and among the parties concerned. 
 
SEC. 3.  Authority of the Energy Regulatory Commission. – The Grantee 
shall secure from the ERC or any other government agency which has jurisdiction over 
the operation of the herein Grantee, the necessary certificate of public convenience and 
necessity (CPCN) and other appropriate permits and licenses for the construction and 
operation of its electric distribution system. 
 
SEC. 4. Excavation and Restoration Works. — For the purpose of erecting, 
maintaining poles and other supports for wires or other conductors for the laying and 
maintaining of underground wires, cable, pipes or other conductors, the Grantee, its 
successors or assignees, is authorized to make excavations or lay conduits in any of the 
public places, roads, highways, streets, lanes, alleys, avenues, sidewalks, or bridges of 
said province, cities and/or municipalities, subject to prior approval of the Department 
of Public Works and Highways (DPWH) or the relevant local government unit (LGU) 
concerned, Provided, however, That any public place, road, highway, street, lane, alley, 
avenue, sidewalk, or bridge disturbed, altered, or changed by reason of the erection of 
poles or other supports or the underground laying of wires, other conductors or 
conduits, shall be repaired or replaced in a workmanlike manner at the expense of the 
Grantee, its successors or assignees, in accordance with the standards set by the DPWH 
or the relevant LGU concerned. Should the Grantee, its successors or assignees, after the 
ten- (10) day notice from the said authority, fail, refuse or neglect to repair or replace any 
part of a public place, road, highway, street, lane, alley, avenue, sidewalk, or bridge that 
has been disturbed, altered, or changed by the said Grantee, its successors or assignees, 
then the DPWH or the relevant LGU concerned shall have the right to have the same 
repaired or replaced in good order and condition and charge the Grantee, its successors 
or assignees, at double the amount of the costs and expenses incurred for such repair or 
replacement. 
 
SEC. 5. Responsibility to the Public. — The Grantee shall supply electricity 
to its captive market in the urban and rural portions of its franchise area in the least 
costly manner. In the interest of the public good and as far as feasible and whenever 
required by the ERC, the Grantee shall modify, improve, or change its facilities, poles, 
lines, systems, and equipment for the purpose of providing efficient and reliable service 
and reduced electricity costs. The Grantee shall charge reasonable and just power rates 
for its services to all types of consumers within its franchise area in order that business 
and industries shall be able to compete. 
 
The Grantee is required to source and procure its power requirements in 
accordance with the applicable rules and resolutions of the ERC.  
 
 
The Grantee shall have the obligation to provide open and non-discriminatory 
access to its distribution system and services to any end user within its franchise area 
consistent with Republic Act No. 9136, otherwise known as the “Electric Power Industry 
Reform Act of 2001.” The Grantee shall not engage in any activity that will constitute an 
abuse of market power such as unfair trade practices, monopolistic schemes, and any 
other activities that will hinder competitiveness of businesses and industries. 


 
SEC. 6. Rates for Service. — The retail rates and charges for the distribution 
of electric power by the Grantee to its end users shall be regulated by and subject to the 
approval of the ERC or its legal successor. 
 
 
The Grantee shall identify and segregate in its electricity bill to the end-users the 
components of the retail rate pursuant to RA No. 9136, unless otherwise amended.  Such 
rates charged by the Grantee to the end-users shall be made public and transparent. The 
Grantee shall implement a lifeline rate to marginalized end users, as mandated by RA 
No. 9136. 
 
The Grantee shall strictly comply with the systems loss cap prescribed by the 
ERC.  
 
 
SEC. 7. Protection of Consumer Interests. — The Grantee shall establish a 
customer desk that will handle consumer complaints and ensure adequate protection of 
consumer interests. The Grantee shall act with dispatch on all such complaints brought 
before it. 
 
The Grantee shall reduce the duration and frequency of interruptions in its 
network and in that regard shall observe the System Average Interruption Frequency 
Index (SAIFI) and System Average Interruption Duration Index (SAIDI) imposed by the 
ERC. 
 
SEC. 8. Election of Independent Directors. – The Board of the Grantee 
shall have independent directors constituting at least twenty percent (20%) of its total 
membership. These directors must be elected by a majority of the outstanding shares 
entitled to vote. 
 
An independent director is a person who, apart from shareholdings and fees 
received from the corporation, is independent of management and free from any 
business or other relationship which could, or could reasonably be perceived to 
materially interfere with the exercise of independent judgment in carrying out the 
responsibilities as a director. 
 
SEC. 9. Right of the Government. — A special right is hereby reserved to the 
President of the Philippines, in times of war, rebellion, public peril, calamity, emergency, 
disaster or disturbance of peace and order, to temporarily take over and operate the 
distribution system of the Grantee, to temporarily suspend the operation of any station 
or facility in the interest of public safety, security and public welfare, or to authorize the 
temporary use and operation thereof by any agency of the government, upon the 
payment of due compensation to the Grantee for the use of said distribution system 
during the period when it shall be so operated. 
 
SEC. 10. Right of Eminent Domain. — Subject to the limitations and 
procedures prescribed by law, the Grantee is authorized to exercise the power of eminent 
domain insofar as it may be reasonably necessary for the efficient establishment, 
improvement, upgrading, rehabilitation, maintenance and operation of its services. The 
Grantee is authorized to install and maintain its poles, wires, and other facilities over, 
under and across public property, including streets, highways, parks, and other similar 
properties of the Government of the Philippines, its branches, or any of its 
instrumentalities. The Grantee may acquire such private property as is actually 


necessary for the realization of the purposes for which this franchise is granted, for the 
operation of a distribution system for the conveyance of electric power to end users in its 
franchise area; Provided, That proper expropriation proceedings shall have been 
instituted and just compensation paid. 
 
SEC. 11. Term of the Franchise. — This franchise shall be for a term of 
twenty-five (25) years from the effectivity of this Act, unless sooner cancelled or revoked. 
This franchise shall be deemed ipso facto revoked in the event that the Grantee fails to 
operate continuously for two (2) years upon issuance of the CPCN by ERC. 
 
SEC. 12. Acceptance and Compliance. – Acceptance of this franchise shall be 
given in writing to Congress, through the Committee on Legislative Franchises of the 
House of Representatives and the Committee on Public Services of the Senate within 
sixty (60) days from the effectivity of this Act.  Upon acceptance, the Grantee shall 
exercise the privileges granted under this Act.  Nonacceptance shall render the franchise 
void.   
 
The Grantee shall apply for the renewal or extension of its franchise five (5) years 
before its expiration date.  
 
SEC. 13. Warranty in Favor of the National and Local Governments. – 
The Grantee shall hold the national, provincial, city, and municipal governments of the 
Philippines free from all claims, liabilities, demands, or actions arising out of accidents 
that cause injury to persons and damage to properties, during the construction, 
installation, operation, and maintenance of the distribution system of the Grantee. 
 
SEC. 14. Liability for Damages. - The Grantee shall be liable for any injury to 
persons and damage to property arising from or caused by any accident arising from any 
defective construction of any infrastructure built pursuant to the operation of its 
business under this franchise, or by any neglect or failure to keep its poles and wires in 
safe condition. 
 
 
SEC. 15. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of the 
Franchise. —The Grantee shall not sell, lease, transfer, grant the usufruct of, nor assign 
this franchise or the rights and privileges acquired thereunder to any person, firm, 
company, corporation or other commercial or legal entity, nor merge with any other 
corporation or entity, nor shall transfer the controlling interest of the Grantee, whether 
as a whole or in part, and whether simultaneously or contemporaneously, to any person, 
firm, company, corporation, or entity without the prior approval of the Congress of the 
Philippines; Provided, That, Congress shall be informed of any sale, lease, transfer, grant 
of usufruct of, or assignment of the franchise or the rights and privileges acquired 
thereunder, or of the merger, or transfer of the controlling interest within sixty (60) days 
after the completion of said transaction: Provided further,  That any such sale, lease, 
transfer or assignment is in accordance with the constitutional limitations:  Provided 
furthermore, That failure to report to Congress such change of ownership shall render 
the franchise ipso facto revoked:  Provided, Finally, That the limitations set forth in this 
section shall not apply to: (a) any transfer or issuance of shares of stock in the 
implementation of the requirement for the dispersal of ownership in the Grantee 
pursuant to Section 16 of this Act; and (b) any sale, transfer, or assignment of shares of 
the Grantee in favor of an affiliate whose controlling interest is owned by the same 
parent corporation of the Grantee. 
 


 
Any person or entity to which this franchise is sold, leased, transferred, or 
assigned, shall be subject to the same conditions, terms, restrictions, and limitations of 
this Act. 
 
SEC. 16. Dispersal of Ownership. – In accordance with the constitutional 
provision to encourage public participation in public utilities, the grantee shall offer to 
the public, specifically  Filipino citizens, at least twenty percent (20%) or a higher 
percentage that may hereafter be provided by law of its outstanding capital stock in any 
securities exchange in the Philippines within five (5) years from the grant of its CPCN  by 
the ERC; Provided, That in cases where a public offer of shares is not applicable, other 
methods of encouraging public participation by citizens and corporations operating 
public utilities must be implemented; Provided that ownership by the Provincial 
Government of Bohol (“PGB") of at least twenty percent (20%) of the outstanding capital 
stock of the Grantee shall be deemed a compliance with the dispersal of ownership 
requirement. 
 
In the event the required dispersal of ownership is not implemented within five 
(5) years from the grant of its CPCN, the holdings of persons, natural or juridical, 
including directors, officers, stockholders, and related interests in the Grantee and its 
respective holding company, if any, shall not exceed twenty-five percent (25%) of the 
voting shares of stock, unless the utility or the company holding the shares or its 
controlling stockholders are already listed in the Philippine stock exchange, Provided, 
that, the ERC may, upon application of the Grantee, and after notice and hearing, allow 
such reasonable extension of the five- (5-) year period within which the Grantee should 
offer its shares of stock to the public, if the market conditions are not suitable for such 
listing or in the event that the Grantee cannot comply with the requirements of the 
Securities and Exchange Commission (SEC) or the Philippine Stock Exchange (PSE) for 
a public offering, especially the three- (3-) year profitability requirement.  
 
Non-compliance therewith shall render the franchise ipso facto revoked.  
 
SEC. 17. Commitment to Provide and Promote the Creation of 
Employment Opportunities. – The Grantee shall create employment opportunities 
and shall allow on-the-job trainings in their franchise operations: Provided, That priority 
shall be accorded to the residents of the franchise area: Provided, Further, That the 
Grantee shall follow the applicable labor standards and allowance entitlement under 
existing labor laws, rules and regulations and similar issuances: Provided, Finally, That 
the employment opportunities or jobs created shall be reflected in the General 
Information Sheet (GIS) to be submitted to the SEC annually.   
 
SEC. 18. Reportorial Requirement. - The Grantee shall submit an annual 
report to the Congress of the Philippines, through the Committee on Legislative 
Franchises of the House of Representatives and the Committee of Public Services of the 
Senate, on its compliance with the terms and conditions of the franchise and on its 
operations on or before April 30 of the succeeding year.  
 
The annual report shall include an update on the rollout, development, 
development, operation and/or expansion of the business; audited financial statements; 
latest GIS officially submitted to the SEC (if available or applicable), certification from 
the ERC on the status of its permits and operations; and an update on the dispersal of 
ownership undertaking, if applicable. 


 
A reportorial compliance certificate issued by Congress shall be required before 
any application for permit or certificate is accepted by the ERC. 
 
The ERC shall, one (1) year from the grant of this franchise and every five (5) 
years thereafter, conduct a comprehensive assessment on the Grantee’s operations and 
compliance with the conditions imposed hereunder and shall submit a report thereof to 
Congress. The Grantee shall submit to the ERC all information and documents necessary 
to complete such assessment.   
 
SEC. 19. Fine. – Failure of the Grantee to submit the requisite annual report to 
Congress shall be penalized by a fine of Five Hundred Pesos (Php 500.00) per working 
day of noncompliance. The fine shall be collected by the ERC from the Grantee separate 
from the reportorial penalties imposed by the ERC and the same shall be remitted to the 
National Treasury. 
 
SEC. 20. Equality Clause. – Any advantage, favor, privilege, exemption, or 
immunity granted under existing franchises, or which may hereafter be granted to power 
distribution franchises, upon prior review and approval of Congress, shall become part 
of this franchise and shall be accorded immediately and unconditionally to the herein 
Grantee: Provided, That the foregoing shall neither apply to nor affect provisions 
concerning territorial coverage, the term, or the type of service authorized by the 
franchise. 
 
SEC 21. Applicability of Existing Laws. - The Grantee shall comply with and 
be subject to the relevant provisions of Commonwealth Act No. 146, or the “Public 
Service Act” as amended, and Republic Act No. 9136. 
 
SEC. 22. Repealability and Non-Exclusivity Clause. – This franchise shall 
be subject to amendment, alteration, or repeal by the Congress of the Philippines when 
the public interest so requires and shall not be interpreted as an exclusive grant of the 
privileges herein provided for. 
 
SEC. 23. Separability Clause. – If any of the sections or provisions of this Act 
is held invalid, all other provisions not affected thereby shall remain valid. 
 
SEC. 24.  Repealing Clause. – All laws, decrees, orders, resolutions, 
instructions and rules and regulations or parts thereof, which are inconsistent with this 
Act, are hereby deemed repealed or modified accordingly.  
 
SEC. 25. Effectivity.  – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
 
Approved,