Republic of the Philippines
CONGRESS OF THE PHILIPPINES
Metro ManilaFourteenth Congress
Third Regular SessionBegun and held in Metro Manila, on Monday, the twenty-seventh day of July, two thousand nine.
REPUBLIC ACT NO. 9969
AN ACT AMENDING REPUBLIC ACT NO. 3221, GRANTING A FRANCHISE TO DAGUPAN ELECTRIC CORPORATION TO CONSTRUCT, OPERATE AND MAINTAIN A DISTRIBUTION SYSTEM FOR THE CONVEYANCE OF ELECTRIC POWER TO THE END-USERS IN THE CITY OF DAGUPAN, THE MUNICIPALITIES OF CALASIAO, STA. BARBARA, SAN FABIAN, SAN JACINTO AND MANAOAG, AND BARANGAYS BOLINGIT AND CRUZ IN THE CITY OF SAN CARLOS, ALL IN THE PROVINCE OF PANGASINAN, AND RENEWING/EXTENDING THE TERM OF THE FRANCHISE TO ANOTHER TWENTY-FIVE (25) YEARS FROM THE DATE OF THE APPROVAL OF THIS ACT
Be it enacted by the Senate and House of Representative of the Philippines in Congress assembled:
Section 1. Republic Act No. 3221, granting a franchise to Dagupan Electric Corporation, is hereby amended to read as follows:
"Section 1. Nature and Scope of Franchise. - Subject to the provisions of the Constitution and applicable laws, rules...
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Amended by
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Republic Acts
AN ACT AMENDING REPUBLIC ACT NO. 3221
Republic Act No. 9969
Summary of Republic Act No. 9969
Nature and Scope of Franchise (Section 1):
- Grants Dagupan Electric Corporation (the grantee) a franchise to construct, operate, and maintain a distribution system for conveying electric power to end-users in specified areas of Pangasinan province.
- Defines "distribution system" as the system of wires, associated facilities, and subtransmission lines belonging to a franchised distribution utility.
Manner of Operations of Facilities (Section 2):
- The grantee must operate and maintain its facilities in a superior manner.
- The grantee must modify, improve, or change its facilities as required by the Energy Regulatory Commission (ERC), Department of Energy (DOE), or other concerned government agencies.
- The grantee must accommodate the use of its facilities by interested parties upon reasonable compensation, subject to ERC's decision in case of disputes.
Authority of the ERC (Section 3):
- The grantee must secure the necessary certificate of public convenience and necessity and other permits from the ERC or relevant government agency.
Ingress and Egress (Section 4):
- The grantee may make excavations or lay conduits in public places with prior approval from the Department of Public Works and Highways (DPWH) or local government units (LGUs).
- The grantee must immediately repair and restore any public place disturbed by its activities.
Responsibility to the Public (Section 5):
- The grantee must supply electricity to its captive market in the least-cost manner.
- The grantee must modify, improve, or change its facilities as required by the ERC for efficient service and reduced costs.
- The grantee must charge reasonable and just power rates to allow businesses and industries to compete.
- The grantee must provide open and non-discriminatory access to its distribution system and services, and not engage in activities that hinder competitiveness.
Rates for Services (Section 6):
- The retail rates and charges for distribution of electric power by the grantee to its end-users shall be regulated and approved by the ERC.
- The grantee must identify and segregate the components of the retail rate in its electricity bill to end-users.
- The grantee must implement a lifeline rate for marginalized end-users as mandated by Republic Act No. 9136.
Promotion of Consumer Interests (Section 7):
- The grantee must establish a consumer desk to handle complaints and ensure adequate promotion of consumer interests.
- The grantee must act with dispatch on all complaints brought before it.
Right of the Government (Section 8):
- The President of the Philippines has the right to take over and operate the grantee's distribution system or authorize its temporary use by any government agency during times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, upon due compensation to the grantee.
Tax Provision (Section 9):
- The grantee must pay a franchise tax equivalent to fifty percent (50%) of one percent (1%) of all revenues derived 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, exclusive of the franchise.
- The grantee must file the return and pay taxes in accordance with the National Internal Revenue Code (NIRC).
Right of Eminent Domain (Section 10):
- The grantee is authorized to exercise the right of eminent domain as reasonably necessary for efficient maintenance and operation of services.
- The grantee may install and maintain its facilities over public property, including streets, highways, forest reserves, and other government property.
- The grantee may acquire private property necessary for the purposes of the franchise, subject to proper condemnation proceedings and just compensation.
Warranty in Favor of National and Local Governments (Section 11):
- The grantee must hold the national, provincial, and municipal governments harmless from all claims, accounts, demands, or actions arising out of accidents or injuries caused by the construction, installation, operation, and maintenance of its distribution system.
Liability for Damages (Section 12):
- The grantee shall be liable for any injury and damage arising from or caused by accidents to persons and property due to any defective construction under this franchise or neglect or omission to keep its poles and wires in a safe condition.
Sale, Lease, Transfer, Usufruct, etc. (Section 13):
- The grantee cannot lease, transfer, grant the usufruct of, or sell this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation, or other commercial or legal entity without the prior approval of the Congress of the Philippines.
- Any entity to which this franchise is sold, transferred, or assigned shall be subject to the same conditions, terms, restrictions, and limitations of this Act.
Equality Clause (Section 14):
- If any competing individual, partnership, or corporation receives a similar permit or franchise with more favorable terms or provisions that place the grantee at a disadvantage, such terms and provisions shall be deemed part of this Act and shall operate equally in favor of the grantee.
- Any terms and provisions granted herein that are not contained in other franchises shall likewise be enjoyed by future grantees, except for provisions concerning territory covered by the franchise and the life span of the franchise.
Reportorial Requirement (Section 15):
- The grantee must submit an annual report of finances and operations to the Congress of the Philippines.
Applicability Clause (Section 16):
- The grantee must comply with and be subject to the provisions of Commonwealth Act No. 146 (Public Services Act) and Republic Act No. 9136 (Electric Power Industry Reform Act of 2001).
Repealability and Nonexclusivity Clause (Section 17):
- This franchise is subject to amendment, alteration, or repeal by the Congress of the Philippines when the public interest so requires, and shall not be interpreted as an exclusive grant of the privileges provided herein.
Separability Clause (Section 18):
- If any section or provision of this Act is declared unconstitutional or invalid, the other parts or provisions not affected shall continue to be in full force and effect.
Renewal/Extension of the Term of Franchise (Section 2):
- This franchise shall be for a term of twenty-five (25) years from the date of effectivity of this Act.
- The franchise shall be deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.
Acceptance and Compliance (Section 3):
- Acceptance of the amendment and extension/renewal of the franchise must be given in writing within sixty (60) days from the date of effectivity of this Act.
Repealing Clause (Section 4):
- All laws, decrees, orders, resolutions, instructions, rules, and regulations or parts thereof inconsistent with this Act are hereby deemed repealed or modified accordingly.
Effectivity Clause (Section 5):
- This Act shall take effect fifteen (15) days after its publication in at least two (2) newspapers of general circulation.
Nature and Scope of Franchise (Section 1):
- Grants Dagupan Electric Corporation (the grantee) a franchise to construct, operate, and maintain a distribution system for conveying electric power to end-users in specified areas of Pangasinan province.
- Defines "distribution system" as the system of wires, associated facilities, and subtransmission lines belonging to a franchised distribution utility.
Manner of Operations of Facilities (Section 2):
- The grantee must operate and maintain its facilities in a superior manner.
- The grantee must modify, improve, or change its facilities as required by the Energy Regulatory Commission (ERC), Department of Energy (DOE), or other concerned government agencies.
- The grantee must accommodate the use of its facilities by interested parties upon reasonable compensation, subject to ERC's decision in case of disputes.
Authority of the ERC (Section 3):
- The grantee must secure the necessary certificate of public convenience and necessity and other permits from the ERC or relevant government agency.
Ingress and Egress (Section 4):
- The grantee may make excavations or lay conduits in public places with prior approval from the Department of Public Works and Highways (DPWH) or local government units (LGUs).
- The grantee must immediately repair and restore any public place disturbed by its activities.
Responsibility to the Public (Section 5):
- The grantee must supply electricity to its captive market in the least-cost manner.
- The grantee must modify, improve, or change its facilities as required by the ERC for efficient service and reduced costs.
- The grantee must charge reasonable and just power rates to allow businesses and industries to compete.
- The grantee must provide open and non-discriminatory access to its distribution system and services, and not engage in activities that hinder competitiveness.
Rates for Services (Section 6):
- The retail rates and charges for distribution of electric power by the grantee to its end-users shall be regulated and approved by the ERC.
- The grantee must identify and segregate the components of the retail rate in its electricity bill to end-users.
- The grantee must implement a lifeline rate for marginalized end-users as mandated by Republic Act No. 9136.
Promotion of Consumer Interests (Section 7):
- The grantee must establish a consumer desk to handle complaints and ensure adequate promotion of consumer interests.
- The grantee must act with dispatch on all complaints brought before it.
Right of the Government (Section 8):
- The President of the Philippines has the right to take over and operate the grantee's distribution system or authorize its temporary use by any government agency during times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, upon due compensation to the grantee.
Tax Provision (Section 9):
- The grantee must pay a franchise tax equivalent to fifty percent (50%) of one percent (1%) of all revenues derived 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, exclusive of the franchise.
- The grantee must file the return and pay taxes in accordance with the National Internal Revenue Code (NIRC).
Right of Eminent Domain (Section 10):
- The grantee is authorized to exercise the right of eminent domain as reasonably necessary for efficient maintenance and operation of services.
- The grantee may install and maintain its facilities over public property, including streets, highways, forest reserves, and other government property.
- The grantee may acquire private property necessary for the purposes of the franchise, subject to proper condemnation proceedings and just compensation.
Warranty in Favor of National and Local Governments (Section 11):
- The grantee must hold the national, provincial, and municipal governments harmless from all claims, accounts, demands, or actions arising out of accidents or injuries caused by the construction, installation, operation, and maintenance of its distribution system.
Liability for Damages (Section 12):
- The grantee shall be liable for any injury and damage arising from or caused by accidents to persons and property due to any defective construction under this franchise or neglect or omission to keep its poles and wires in a safe condition.
Sale, Lease, Transfer, Usufruct, etc. (Section 13):
- The grantee cannot lease, transfer, grant the usufruct of, or sell this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation, or other commercial or legal entity without the prior approval of the Congress of the Philippines.
- Any entity to which this franchise is sold, transferred, or assigned shall be subject to the same conditions, terms, restrictions, and limitations of this Act.
Equality Clause (Section 14):
- If any competing individual, partnership, or corporation receives a similar permit or franchise with more favorable terms or provisions that place the grantee at a disadvantage, such terms and provisions shall be deemed part of this Act and shall operate equally in favor of the grantee.
- Any terms and provisions granted herein that are not contained in other franchises shall likewise be enjoyed by future grantees, except for provisions concerning territory covered by the franchise and the life span of the franchise.
Reportorial Requirement (Section 15):
- The grantee must submit an annual report of finances and operations to the Congress of the Philippines.
Applicability Clause (Section 16):
- The grantee must comply with and be subject to the provisions of Commonwealth Act No. 146 (Public Services Act) and Republic Act No. 9136 (Electric Power Industry Reform Act of 2001).
Repealability and Nonexclusivity Clause (Section 17):
- This franchise is subject to amendment, alteration, or repeal by the Congress of the Philippines when the public interest so requires, and shall not be interpreted as an exclusive grant of the privileges provided herein.
Separability Clause (Section 18):
- If any section or provision of this Act is declared unconstitutional or invalid, the other parts or provisions not affected shall continue to be in full force and effect.
Renewal/Extension of the Term of Franchise (Section 2):
- This franchise shall be for a term of twenty-five (25) years from the date of effectivity of this Act.
- The franchise shall be deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.
Acceptance and Compliance (Section 3):
- Acceptance of the amendment and extension/renewal of the franchise must be given in writing within sixty (60) days from the date of effectivity of this Act.
Repealing Clause (Section 4):
- All laws, decrees, orders, resolutions, instructions, rules, and regulations or parts thereof inconsistent with this Act are hereby deemed repealed or modified accordingly.
Effectivity Clause (Section 5):
- This Act shall take effect fifteen (15) days after its publication in at least two (2) newspapers of general circulation.