Question & AnswerQ&A (Republic Act No. 9209)
The main purpose of Republic Act No. 9209 is to grant the Manila Electric Company (MERALCO) a franchise to construct, operate, and maintain a distribution system for the conveyance of electric power to end-users in specified cities, municipalities, and barangays in Metro Manila, Bulacan, Cavite, Rizal, Batangas, Laguna, Quezon, and Pampanga.
The franchise granted to MERALCO under RA 9209 is for a term of twenty-five (25) years from the date of effectivity, unless sooner revoked or cancelled by Congress.
As defined in RA 9209, '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-user.
MERALCO must obtain prior approval from the Department of Public Works and Highways (DPWH) or the local government units (LGUs) concerned, as may be appropriate, before making excavations or laying conduits in any public places or public rights-of-way.
MERALCO is required to operate and maintain its electric distribution facilities in a superior manner at all times and, when required by the Energy Regulatory Commission (ERC), to modify, improve, and change such facilities as science and technology progress to provide efficient and reliable service.
MERALCO is not allowed to lease, transfer, grant usufruct, or sell its franchise or rights without prior approval by Congress, except to a wholly-owned subsidiary or in cases where MERALCO is the surviving corporation, and all transfers must comply with constitutional limitations.
The retail rates and charges are regulated by and subject to the approval of the Energy Regulatory Commission (ERC), which also requires rate transparency and the implementation of lifeline rates for marginalized end-users.
The President has the special right to take over and operate the distribution system or authorize temporary use and operation by any government agency during times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation to MERALCO.
MERALCO is liable for any injury or damage arising from defective construction or neglect in maintaining its poles and wires in a safe condition, including damages to persons and property.
MERALCO is required to establish consumer desks to handle complaints efficiently and ensure the promotion of consumer interests, acting promptly on complaints received.
MERALCO is authorized to exercise the right of eminent domain reasonably necessary for efficient maintenance and operation of services, including acquiring private property through proper condemnation proceedings and just compensation.
Yes, the franchise is subject to amendment, alteration, or repeal by Congress when public interest so requires and it is not to be interpreted as an exclusive grant of privileges.