Operation and Maintenance of Facilities
- Grantee must operate and maintain electric facilities in a superior manner.
- Must modify or improve facilities as required by regulatory authorities based on technological advances.
- May allow others to use free space on poles or right-of-way for reasonable compensation; disputes resolved by ERC.
Regulatory Compliance
- Grantee must secure required certificates and permits from ERC, DOE, or other agencies to operate.
Excavation Works and Restoration
- Grantee may excavate public places for installation and maintenance with prior approval from DPWH or local government units.
- Must restore public areas to proper condition at its expense.
- Failure to restore within 10 days allows authorities to do restoration at double cost charged to grantee.
Public Service Obligations
- Obligation to supply electricity at least cost to captive market.
- Must improve facilities for efficient, reliable service and reduced costs as required by ERC.
- Must charge just and reasonable rates promoting competitiveness.
- Must provide open and non-discriminatory access consistent with EPIRA.
- Prohibited from abusing market power or engaging in unfair practices.
Rate Regulation
- Retail electricity rates must be approved by ERC.
- Rates must be transparent and comply with EPIRA requirements.
- Lifeline rates must be implemented for marginalized consumers.
Consumer Protection
- Must establish a consumer desk for complaints.
- Required to act promptly on consumer issues.
Government Rights during Emergencies
- President may temporarily take over or suspend operation of facilities in emergencies, with due compensation.
Eminent Domain Authority
- Grantee authorized to exercise eminent domain for installing and maintaining facilities.
- Can acquire private property upon proper expropriation and just compensation.
Franchise Term and Revocation
- Franchise lasts 25 years from effectivity.
- Automatically revoked if grantee ceases operation for two years.
Acceptance and Compliance
- Written acceptance of franchise required within 60 days to Congress.
- Nonacceptance voids franchise.
Indemnity to Government
- Grantee holds government harmless from claims related to accidents from its operations.
Liability for Damages
- Grantee liable for injuries or damages caused by defective construction or negligence.
Restrictions on Transfer and Assignment
- Sale, lease, transfer, assignment, or merger requires prior congressional approval.
- Must notify Congress within 60 days post-transaction.
- Non-reporting results in automatic revocation.
- Successors subject to same terms.
Ownership Dispersal
- Must offer at least 30% of capital stock to Filipinos within 5 years.
- If public offering not feasible, must encourage public participation through cooperatives or other means.
- Noncompliance results in revocation.
Reporting Requirements
- Annual report to Congress on compliance and operations by April 30.
- Compliance certificate required before ERC accepts permit applications.
Penalties for Noncompliance
- Failure to submit reports fined ₱500 per working day.
- Fines collected by ERC and accrue to ERC's monitoring fund.
Equality Clause
- Any franchise advantages granted to others apply to this franchise, except regarding territory, lifespan, service type, and transfer of franchise rights.
Applicability of Existing Laws
- Subject to Public Service Act and EPIRA.
Separability Provision
- Invalidity of any provision does not affect the rest of the Act.
Amendments and Nonexclusivity
- Congress may amend, alter, or repeal franchise as public interest requires.
- Franchise is not exclusive.
Effectivity
- The Act takes effect 15 days after publication in the Official Gazette or newspaper of general circulation.