Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Diliman, Quezon City 
19th CONGRESS 
Second Regular Session 
House Bill No. 9833
__________________________________________________________________ 
Introduced by: 
Rep. Lord Allan Jay Q. Velasco, (Lone District of Marinduque) 
Rep. Sergio C. Dagooc, APEC Party-List 
Rep. Presley C. De Jesus, PHILRECA Party-List 
EXPLANATORY NOTE 
This bill is seeks to bestow the congressional franchise to Marinduque Electric 
Cooperative, Inc. (MARELCO), to construct, install, establish, operate, and 
maintain an electric power distribution system for the people of the municipalities 
of Boac, Buenavista, Gasan, Mogpog, Sta. Cruz, Torrijos in the Province of 
Marinduque. Furthermore, it establishes standards that the franchise grantee must 
attain in order to implement an effective partnership between the government and 
the distribution utility as its implementing partner for total electrification. 
On December 19, 1979, MARELCO was granted by the National Electrification 
Administration (NEA) a 50-year franchise by virtue of Certificate of Franchise No. 
048. As the sole franchise holder for electric distribution in Marinduque,
MARELCO has been providing excellent electric service to the municipalities of the 
province, achieving 100% electrification level as mandated by Republic Act No. 
9136 or the Electric Power Industry Reform Act (EPIRA). Moreover, by April 17, 
January 29, 2024
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2021, MARELCO was given by NEA an “AAA” rating in its performance ranking, 
which is the highest rate given by NEA to electric cooperatives indicating the power 
distributor’s full compliance on four parameters namely financial, institutional, 
technical and reportorial requirements.  
Granting this franchise will ensure the continuous supply of electricity to the people 
of Marinduque. It will enable MARELCO to continue with its mission of taking a 
major role in the socio-economic development of Marinduque by providing an 
affordable, dependable, efficient, and reliable electric service to its member-
consumer-owners. 
In view of the foregoing, the approval of this bill is earnestly sought. 
LORD ALLAN JAY Q. VELASCO 
Representative, Lone District of Marinduque 
SERGIO C. DAGOOC 
APEC Party-List Representative 
PRESLEY C. DE JESUS 
PHILRECA Party-List Representative 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Diliman, Quezon City 
19th CONGRESS 
Second Regular Session 
House Bill No. 9833
__________________________________________________________________ 
Introduced by:  
Rep. Lord Allan Jay Q. Velasco (Lone District of Marinduque) 
Rep. Sergio C. Dagooc (APEC Partylist) 
Rep. Presley C. De Jesus (PHILRECA Partylist) 
AN ACT 
GRANTING THE LEGISLATIVE FRANCHISE OF MARINDUQUE 
ELECTRIC COOPERATIVE, INC TO CONSTRUCT, INSTALL, 
ESTABLISH, OPERATE AND MAINTAIN A DISTRIBUTION SYSTEM 
FOR THE CONVEYANCE OF ELECTRIC POWER TO THE END USERS 
IN THE MUNICIPALITIES OF BOAC, BUENAVISTA, GASAN, 
MOGPOG, STA. CRUZ, TORRIJOS AND ITS NEIGHBORING SUBURBS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Nature and Scope of Franchise. Subject to the provisions of the 
Constitution and applicable laws, rules and regulations, there is hereby granted to 
the Marinduque Electric Cooperative, Inc. (MARELCO), hereunder referred to as 
the grantee, its successors or assignees, a franchise to construct, install, establish, 
operate and maintain for public interest, a distribution system for the conveyance of 
electric power to the end users in the municipalities of Boac, Buenavista, Gasan, 
Mogpog, Sta. Cruz, and Torrijos. 


As used in this Act, distribution system refers to the system of wires and 
associated facilities including sub-transmission lines belonging to a franchised 
distribution utility extending between the delivery point on the national transmission 
system or generating facility and the metering point/facility of the end-users. 
SECTION 2. Manner of Operation of Facilities. All electric distribution 
facilities, lines, and systems for electric services owned, maintained, operated, or 
managed by the grantee, its successors or assignees, shall be operated and 
maintained at all times in the best manner, and it shall be the duty of the grantee, its 
successors or assignees, whenever required to do so by the Energy Regulatory 
Commission (ERC) or its legal successor, or the Department of Energy (DOE) or its 
legal successor, or the National Electrification Administration(NEA) or its legal 
successor, or any other government agency concerned, to modify, improve and 
change such facilities or systems in such a manner and to such extent as the progress 
in science and improvements in the electric power service industry may render 
reasonable and proper. 
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 reasonable 
compensation to the grantee considering the costs incurred to accommodate and 
administer the use of the grantee’s facilities by such parties. The ERC or NEA shall 
resolve cases of dispute or disagreement between parties. 
SECTION 3. Authority of the Energy Regulatory Commission (ERC) and the 
National Electrification Administration (NEA). The grantee shall secure from the 
ERC or NEA, or any other government agency which has jurisdiction over the 
operation of the herein grantee, the necessary certificate of public convenience and 
necessity and other appropriate permits and licenses for the construction and 
operation of its electric distribution system. 
SECTION 4. Ingress and Egress. For the purpose of erecting and 
maintaining poles and other supports for wires or other conductors for the laying and 
maintaining underground wires, cables, pipes or other conductors, the grantee, its 
successors or assignees, is authorized to make excavations or lay conduits in any of 
the public places, 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 Local Government 
Units (LGU) concerned: Provided, however, That any public place, road, highway, 


street, lane, alley, avenue sidewalk, or bridge disturbed, altered, or changed by 
reason of erection of poles or other supports or the underground laying of wires, 
other conductors or conduits, shall be repaired or replaced in workmanlike manner 
at the expense of the grantee, its successors or assignees, in accordance with the 
standards set by the DPWH or the 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 public place, road, highway, street, lane, alley, 
avenue, sidewalk or bridge altered, changed or disturbed by the said grantee, its 
successors or assignees, then the DPWH or LGU concerned shall have the right to 
have the same repaired or replaced in good order and condition and charge the 
grantee, its successor or assignees at double the amount of the costs and expenses 
for such repair or replacement. 
 
SECTION 5. Responsibility to the Public. The grantee shall supply electricity 
to its captive market 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 franchised areas. 
The grantee shall have the obligation to provide open and nondiscriminatory 
access to its distribution system and services for 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 business and 
industries. 
 
SECTION 6. Rates for Services. The retail rates and charges for the 
distribution of electric power by the grantee to its end user 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 Republic Act 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 lifeline rate to marginalized end 
users as mandated under Republic Act No. 9136. 
 
SECTION 7. Protection of Consumer Interests. The herein grantee shall 
establish a consumer desk that will handle consumer complaints and ensure adequate 


protection of consumer interests. The grantee shall act with dispatch on all 
complaints brought before it. 
 
SECTION 8. 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 due compensation to the grantee, for the use of said distribution 
system during the period when they shall be so operated. 
 
SECTION 9. Right of Eminent Domain. Subject to the limitations and 
procedures prescribed by law, the grantee is authorized to exercise the right of 
eminent domain insofar as it may be reasonably necessary for the efficient 
maintenance and operation of services. The grantee is authorized to install and 
maintain its poles, wire facilities over and across public property, including streets, 
highways, forest reserves, and other similar property 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: Provided, that proper condemnation proceedings 
shall have been instituted and just compensation paid. 
 
SECTION 10. Term of Franchise. This franchise shall be for a term of 
twenty-five (25) years from the date of 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 
 
SECTION 11. Acceptance of the Franchise. Acceptance of the terms of this 
franchise shall be in writing to the Committee on Legislative Franchises of the House 
of Representatives and the Committee on Public Services of the Philippine Senate, 
within sixty (60) days after the effectivity of this Act. Upon giving such acceptance, 
the grantee shall exercise the privileges granted under this Act. Non-acceptance shall 
render the franchise void. 
 
 
SECTION 12. Warranty in Favor of 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. 
SECTION 13. Liability to Damages. The grantee shall be liable for any 
injury and damage arising from or caused by accident to persons and property by 
reason of any defective construction under this franchise or of any neglect or 
omission to keep its poles and wires in safe condition. 
SECTION 14. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of 
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 such 
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, or assignment of franchise or the rights or privileges 
acquired thereunder or the merger, or transfer the controlling interest of the grantee, 
within sixty (60) days after the completion of the said transaction: Provided, further, 
That any such transfer, sale or assignment is in accordance with constitutional 
limitations: Provided, furthermore, That failure to report to Congress such change of 
ownership shall render the franchise ipso facto revoked: Provided, finally, That any 
person or entity to which this franchise is sold, transferred or assigned, shall be 
subject to the same conditions, terms, restrictions and limitations of this Act." 
SECTION 15. 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 every year during the term of the franchise. 
The reportorial compliance certificate issued by Congress shall be required before 
any application for permit or certificate is accepted by the ERC. 
SECTION 16. Equality Clause. Any advantage, favor, privilege, exemption, 
or immunity granted under existing franchises, or may hereinafter be granted, upon 
prior review and approval of Congress, become part of this franchise and shall be 
accorded immediately and unconditionally to the herein grantee: Provided, however, 
That the foregoing shall neither apply to nor affect provisions concerning territory 
covered, term, or the type of service authorized by the franchise: Provided, further, 
That the foregoing shall not apply to the sale, lease, transfer, grant off usufruct or 


assignment of legislative franchises with prior congressional approval. 
SECTION 17. Applicability of Existing Laws. The grantee shall comply with 
and be subject to the provisions of Commonwealth Act No. 146, or the "Public 
Service Act" as amended; Republic Act No. 9136; and Republic Act No. 10531 or 
"An Act Strengthening the National Electrification Administration, further 
Amending Presidential Decree No. 269, as amended. Otherwise known as the 
National Electrification Administration Decree". 
SECTION 18. Fine.  The failure of the grantee to submit the requisite annual 
report to Congress shall be penalized by a fine of Five Hundred Pesos (P500.00) per 
working day of noncompliance. The fine shall be collected separately by the ERC 
distinct from the penalties it imposes for non-compliance of its own reportorial 
requirements and shall be remitted to the Bureau of Treasury. 
SECTION 19. Repealability and Nonexclusivity 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. 
SECTION 20. Separability Clause. If any of the sections or provisions of 
this Act is held invalid, all other provisions not affected thereby shall remain valid. 
SECTION 21. Repealing Clause.- Al laws, presidential decrees, executive 
orders, letters of instruction, administrative rules and regulations or parts thereof 
which are contrary to or inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly. 
SECTION 22. Existing Powers. – Existing mandates, powers, functions, and 
privileges granted to Electric Cooperatives under existing laws, including Section 
10 of republic Act No. 10531, shall remain valid and effective, unless expressly 
repealed by succeeding laws. 
SECTION 23. Effectivity. This Act shall take effect fifteen (15) days after its 
publication either in the Official Gazette or in a newspaper of general circulation.  
Approved.