Operation and Maintenance of Distribution Facilities
- Grantee must operate and maintain distribution facilities at the highest standards.
- Upon request by ERC, DOE, NEA, or other concerned agencies, grantee must modify or improve facilities as technology advances.
- Poles and infrastructure may be shared with third parties for compensation; disputes resolved by ERC or NEA.
Permits and Certificates
- Grantee must secure certificates of public convenience and other permits from ERC or NEA or other relevant government agencies before construction and operation.
Excavation and Restoration Duties
- Authorized to excavate public places and infrastructure for installing poles, wires, cables, conduits with prior DPWH or LGU approval.
- Obligation to restore disturbed public property in workmanlike condition at their expense.
- Failure to restore within ten days allows DPWH or LGU to repair and charge double cost to grantee.
Public Service Obligations
- Must supply electricity at the least cost to captive market.
- Required to improve and upgrade system efficiency and reduce costs when feasible or ordered by ERC.
- Charging reasonable and just rates; providing open, non-discriminatory access consistent with Republic Act No. 9136.
- Prohibited from abusing market power or engaging in monopolistic or unfair trade practices.
Regulation on Rates
- Retail rates for electric distribution regulated and approved by ERC.
- Must itemize bill components transparently and publicly.
- Implementation of lifeline rates mandated for marginalized consumers under RA 9136.
Consumer Protection
- Establish consumer desk to handle complaints promptly and protect consumer interests.
Employment Commitments
- Required to create employment opportunities and allow on-the-job training prioritizing local residents.
- Compliance with labor laws and report employment data annually to Securities and Exchange Commission.
Government Rights in Emergencies
- President reserves special rights to temporarily take over or suspend operations during emergencies like war, rebellion, calamity, or disturbance.
- Compensation to grantee for government use during such periods.
Eminent Domain Powers
- Authorized to exercise eminent domain reasonably necessary for service operations.
- May install facilities on public and private property after just compensation and legal process.
Term and Continuity of Franchise
- Franchise valid for 25 years from effectivity unless canceled earlier.
- Automatic revocation if operations cease for two continuous years.
Acceptance and Effectivity
- Grantee must accept franchise terms in writing within 60 days or franchise rendered void.
Protection and Liability
- Grantee must indemnify government against claims from accidents during system construction and operations.
- Liable for injuries or damages caused by defective construction or neglect in maintenance.
Restrictions on Transfer and Sale
- Franchise cannot be transferred, sold, leased, or assigned without prior congressional approval.
- Non-reporting of such transactions to Congress results in automatic revocation.
- Successors subject to all terms and conditions.
Reporting Requirements
- Annual operational and compliance report must be submitted to Congress by April 30 each year.
- Non-compliance fined five hundred pesos per working day of delay, collected separately by ERC.
Equality and Nonexclusivity
- Franchise subject to amendments when public interest requires.
- Franchise is nonexclusive; advantages given in other franchises apply if approved by Congress.
Compliance with Existing Laws
- Subject to Public Service Act (Commonwealth Act No. 148), RA 9136, and RA 10531.
Miscellaneous Provisions
- If any provision invalid, remainder not affected.
- Effectivity 15 days after publication in Official Gazette or newspaper.
This summary covers all principal aspects including franchise scope, operational mandates, regulatory controls, public service obligations, government rights, liabilities, and administrative requirements.