QuestionsQuestions (Republic Act No. 9969)
RA 9969 amended RA 3221 to grant Dagupan Electric Corporation a franchise to construct, operate, and maintain an electric power distribution system for the conveyance of electricity to end-users in the City of Dagupan, specified municipalities (Calasiao, Sta. Barbara, San Fabian, San Jacinto, Manaoag) and specified barangays (Bolingit and Cruz) in the City of San Carlos, all in Pangasinan.
It defines “distribution system” as the system of wires and associated facilities, including subtransmission 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.
The grantee must operate and maintain facilities “at all times in a superior manner” and must modify/improve/change facilities whenever required by the ERC (or its legal successor), the DOE (or its legal successor), or any concerned government agency.
The grantee may excavate or lay conduits with the prior approval of the DPWH or the concerned LGUs, as may be appropriate.
The grantee bears the expense of immediate repair and proper restoration, in accordance with the standards set by the DPWH and the LGUs.
It must supply electricity to its captive market in the least-cost manner, modify/improve facilities to provide efficient and reliable service and reduced electricity costs when feasible and as required by the ERC, and charge reasonable and just power rates to all types of consumers within the franchise area.
No. The franchise grants an obligation to provide open and non-discriminatory access to its distribution system and services for any end-user within its franchise area, consistent with RA 9136 (Electric Power Industry Reform Act). The grantee must not abuse market power or engage in activities that hinder competitiveness.
Retail rates to the captive market and charges for distribution are regulated and subject to the approval of the ERC (or its legal successor).
The grantee must identify and segregate the components of the retail rate in the electricity bill pursuant to RA 9136 (unless otherwise amended). Rates charged must be made public and transparent, and it must implement lifeline rates to marginalized end-users as mandated under RA 9136.
It must establish a consumer desk to handle consumer complaints and ensure adequate promotion of consumer interests, and must act with dispatch on complaints brought before it.
In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may take over and operate the distribution system or authorize temporary use/operation by any government agency upon due compensation to the grantee.
The franchise tax is currently fifty percent (50%) of one percent (1%) of all revenues derived by the grantee from its distribution wheeling services and captive market supply, excluding generation charge, transmission charge, and system loss charge.
The grantee is liable to pay real property taxes only on its real estate and buildings, excluding the franchise, as other corporations are now or may be required by law to pay.
The grantee may exercise eminent domain only insofar as reasonably necessary for efficient maintenance and operation of services. It may install facilities over/across public property subject to legal limitations, and may acquire private property only when actually necessary, provided that proper condemnation proceedings are instituted and just compensation is paid.
The grantee may not lease, transfer, grant usufruct of, or sell the franchise/rights and privileges, nor merge with another entity, nor transfer controlling interest without prior approval of the Congress of the Philippines.
The term is twenty-five (25) years from the date of effectivity of the Act. The franchise is deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.
Acceptance must be given in writing within sixty (60) days from the date of effectivity of RA 9969.