Question & AnswerQ&A (Republic Act No. 10892)
Republic Act No. 10892 renews for another twenty-five (25) years the franchise granted to Ibaan Electric Corporation to construct, operate, and maintain an electric light, heat, and power system in the Municipality of Ibaan, Province of Batangas.
The franchise is renewed for a period of twenty-five (25) years from the effectivity of the Act.
The distribution system refers to the systems 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 all electric distribution facilities in a superior manner and must modify, improve, and change the facilities or systems as required by the Energy Regulatory Commission (ERC), Department of Energy (DOE), or other government agencies to keep up with technological progress and improve electric power services.
The grantee may allow use of free spaces in its poles, facilities, or right-of-way upon reasonable compensation, considering the cost incurred to accommodate and administer the use, and subject to any dispute being decided by the ERC.
The grantee shall secure the necessary certificate of public convenience and necessity and other appropriate permits and licenses from the ERC, DOE, or any other government agency with jurisdiction.
With prior approval from the Department of Public Works and Highways (DPWH) or the local government unit (LGU), the grantee can make excavations but must repair and replace any disturbed public place or infrastructure in a workmanlike manner at its own expense, according to DPWH or LGU standards. Failure to comply after ten (10) days' notice gives the DPWH or LGU the right to repair at double expense to be charged to the grantee.
The grantee must supply electricity to its captive market in the least costly manner, charge reasonable and just power rates, provide open and nondiscriminatory access to its distribution system, and avoid abusive market practices. Rates must be regulated and approved by ERC, and lifeline rates must be implemented for marginalized users as mandated by law.
The franchise shall be deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.
No. The grantee cannot sell, lease, transfer, grant the usufruct of, or assign the franchise or merge or transfer controlling interest without prior approval of Congress. Failure to report such transfer to Congress within sixty (60) days renders the franchise ipso facto revoked.
The grantee must offer at least thirty percent (30%) of its outstanding capital stock to Filipino citizens or implement cooperative ownership or other methods encouraging public participation within five (5) years from the start of operations. Noncompliance results in ipso facto revocation of the franchise.
The grantee must submit an annual report on its compliance and operations to Congress through the appropriate committees on or before April 30 of the succeeding year.
A fine of five hundred pesos (P500.00) per working day of noncompliance, collected by the ERC, shall be imposed, separate from other penalties, with proceeds going to the ERC's monitoring fund.
In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may temporarily take over and operate, suspend operations, or authorize government use of the grantee's facilities, with due compensation to the grantee.
No. The franchise is subject to amendment, alteration, or repeal by Congress when public interest so requires and shall not be interpreted as an exclusive grant.