Question & AnswerQ&A (Republic Act No. 9284)
Republic Act No. 9284 amends and extends the term of the franchise granted to Cagayan Electric Power and Light Co., Inc. (CEPALCO) to construct, operate, and maintain an electric power distribution system in specific areas of Misamis Oriental and Cagayan de Oro City for public interest and commercial purposes.
The franchise covers the City of Cagayan de Oro and the municipalities of Tagoloan, Villanueva, and Jasaan in Misamis Oriental, excluding certain barangays in Cagayan de Oro as specified in the Act.
The Energy Regulatory Commission (ERC) and the Department of Energy (DOE) regulate and approve the retail rates and charges for electric power distribution to end-users within CEPALCO's franchise area.
The grantee must establish a consumer desk to handle consumer complaints promptly and ensure the adequate promotion of consumer interests.
The President of the Philippines is reserved the right to take over and operate the distribution system during times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order upon due compensation to the grantee.
No, CEPALCO cannot lease, transfer, sell, grant usufruct, merge, or transfer controlling interest in its franchise or rights without prior approval from the Congress of the Philippines, except to a wholly-owned subsidiary or if CEPALCO is the surviving corporation.
The franchise is extended or renewed for a period of twenty-five (25) years starting from the expiration date of the original franchise.
The franchise shall be deemed ipso facto revoked if CEPALCO fails to operate continuously for two (2) years.
The grantee and its successors or assigns must operate and maintain electric distribution facilities in a superior manner and are required to modify, improve, or change facilities as progress in science and electric power services dictate.
The grantee is authorized to exercise the right of eminent domain as reasonably necessary for service maintenance, including installing poles and wires over public property, and can acquire private property through proper condemnation proceedings with just compensation.