Question & AnswerQ&A (Republic Act No. 8960)
Republic Act No. 8960 primarily extends the franchise granted to Davao Light and Power Company, Inc. to construct, operate, and maintain an electric light, heat, and power system in specified areas of Davao City and Davao del Norte for 25 years.
The franchise is extended for a period of twenty-five (25) years from the date of effectivity of this Act.
The franchise covers Davao City and the municipalities of Carmen, Panabo, Dujali, and Santo Tomas in the Province of Davao del Norte.
The rates for the sale of electricity, heat, and power by the grantee are subject to the regulations of the Energy Regulatory Board.
If the government desires to operate and maintain the system, the grantee is required to surrender its franchise and turn over all its equipment to the government at fair market value.
No, the grantee is subject to all taxes, duties, fees, or charges applicable under the National Internal Revenue Code and other laws, except where specific tax exemptions or incentives are granted by other laws.
No, the grantee shall not sell, transfer, lease, grant usufruct, assign, merge, or transfer controlling interest without the approval of the Congress of the Philippines.
Yes, all rights, privileges, benefits, and exemptions accorded to existing and future private electric utilities by their respective franchises are extended to the grantee.
The grantee must submit an annual report to the Congress of the Philippines within sixty (60) days from the end of every year on its compliance with the terms of the franchise and on its operations.
Yes, the franchise is subject to amendment, alteration, or repeal by the Congress of the Philippines when the public interest so requires, and it is not an exclusive grant.