Question & AnswerQ&A (Republic Act No. 11322)
Republic Act No. 11322 grants a legislative franchise to Cotabato Electric Cooperative, Inc.-PPALMA (COTELCO-PPALMA) to construct, install, establish, operate, and maintain a distribution system for the conveyance of electric power to end users in specified municipalities of Cotabato and its neighboring suburbs.
The franchise covers the municipalities of Pikit, Pigcawayan, Aleosan, Libungan, Midsayap, and Alamada in the Province of Cotabato, and its neighboring suburbs.
The grantee must operate and maintain all electric distribution facilities in the best manner and modify, improve, or change facilities as required by regulatory agencies such as the ERC, DOE, or NEA, to keep pace with progress in science and industry standards.
The President of the Philippines may temporarily take over or suspend operation of the distribution system in times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation to the grantee.
The grantee must secure from the Energy Regulatory Commission (ERC), the National Electrification Administration (NEA), or other appropriate government agencies a certificate of public convenience and necessity and other relevant permits and licenses.
The grantee is authorized to excavate public places for installation, but must repair or replace any disturbed public property in a workmanlike manner at its own expense according to standards set by DPWH or LGUs; failure to do so after notice entitles these authorities to repair and charge the grantee double the cost.
Retail rates and charges for electricity distribution are regulated and subject to ERC approval. Rates must be reasonable, just, public, transparent, and include an itemization of components on the electricity bill, with mandatory implementation of lifeline rates for marginalized users.
The franchise cannot be sold, leased, transferred, or assigned without prior approval of Congress. Failure to report any such transaction within 60 days after completion renders the franchise ipso facto revoked. All assignees are bound by the same terms and conditions.
The franchise lasts for 25 years from the effectivity of the law unless sooner cancelled. It is automatically revoked if the grantee fails to operate continuously for two years.
The grantee is fined Five hundred pesos (P500.00) per working day of noncompliance, collected separately by the Energy Regulatory Commission (ERC) distinct from other penalties.