An Act Amending Sections 1, 15, and 21 of Republic Act No. 11212
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An Act Amending Sections 1, 15, and 21 of Republic Act No. 11212
Republic Act No. 11918
July 30, 2022
Case Overview and Summary
Summary of Republic Act No. 11918Nature and Scope of Franchise (Section 1)
- Grants MORE Electric and Power Corporation (the Grantee) a franchise to establish, operate, and maintain a distribution system for the conveyance of electric power to end users in the cities of Iloilo and Passi, and the municipalities of Alimodian, Leganes, Leon, New Lucena, Pavia, San Miguel, Santa Barbara, Zarraga, Anilao, Banate, Barotac Nuevo, Dingle, Dueñas, Dumangas, and San Enrique in the Province of Iloilo.
- Defines "distribution system" as the system of wires and associated facilities, including subtransmission lines, belonging to or used by a franchised distribution utility, extending between the delivery point on the national transmission system or generating facility and the metering point or facility of the end-user.
Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise (Section 2, amending Section 15)
- The Grantee shall not sell, lease, transfer, grant the usufruct of, or assign 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 and compliance with legal requirements.
- The Grantee shall notify Congress in writing of any sale or transfer of its shares less than the controlling interest before the dispersal of its ownership under Section 16. Failure to report such change of ownership shall render the franchise ipso facto revoked.
- The limitations do not apply to: (a) any transfer or issuance of shares in the implementation of the requirement for the dispersal of the Grantee's ownership pursuant to Section 16, and (b) any sale, transfer, or assignment of shares in favor of an affiliate whose controlling interest is owned by the same parent corporation of the Grantee, provided it is in accordance with any applicable constitutional limitations.
- Any person or entity to which this franchise is sold, transferred, or assigned shall be subject to the same conditions, terms, restrictions, and limitations of this Act.
Market Abuse or Anti-Competitive Behavior (New Section 21)
- The Energy Regulatory Commission (ERC) shall determine if there is any market abuse or anti-competitive behavior by any party to any existing power sales agreement covering the franchise area.
- If found, the ERC shall order the amendment of any contract which is determined to be grossly disadvantageous.
- Notwithstanding any ERC action, the parties of any affected power sales agreement may negotiate for the reduction of any tariff or rates under the agreement, in accordance with the dispute resolution clause or applicable clause.
- Any amendment of the power sales agreement shall not diminish or impair a party's financial investment entered into pursuant to the said agreement.
Equality Clause (Section 22, formerly Section 21)
- Any advantage, favor, privilege, exemption, or immunity granted under existing franchises, or which may hereafter be granted to power distribution franchises, upon prior review and approval of Congress, shall become part of this franchise and shall be accorded immediately and unconditionally to the Grantee.
- The equality clause shall not apply to provisions concerning territorial coverage, the term, and the type of service authorized by the franchise.
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An Act Amending Sections 1, 15, and 21 of Republic Act No. 11212
Republic Act No. 11918
•July 30, 2022
July 30, 2022
REPUBLIC ACT NO. 11918
AN ACT AMENDING SECTIONS 1, 15, AND 21 OF REPUBLIC ACT NO. 11212, ENTITLED 'AN ACT GRANTING MORE ELECTRIC AND POWER CORPORATION A FRANCHISE TO ESTABLISH, OPERATE, AND MAINTAIN, FOR COMMERCIAL PURPOSES AND IN THE PUBLIC INTEREST, A DISTRIBUTION SYSTEM FOR THE CONVEYANCE OF ELECTRIC POWER TO THE END USERS IN THE CITY OF ILOILO, PROVINCE OF ILOILO, AND ENSURING THE CONTINUOUS AND UNINTERRUPTED SUPPLY OF ELECTRICITY IN THE FRANCHISE AREA'
SECTION 1. Section 1 of Republic Act No. 11212 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 and regulations, there is hereby granted to MORE Electric and Power Corporation, hereunder referred to as the Grantee, its successors or assignees, a franchise to establish, operate, and maintain, for commercial purposes and in the public interest, a distribution system for the conveyance of electric power to end users in the cities of Iloilo and Passi and the municipalities of Alimodian, Leganes,...
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