Republic of the Philippines
CONGRESS OF THE PHILIPPINES
Metro ManilaFifteenth Congress
Third Regular SessionBegun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand twelve.
REPUBLIC ACT NO. 10373
AN ACT GRANTING THE OLONGAPO ELECTRICITY DISTRIBUTION COMPANY, INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN A DISTRIBUTION SYSTEM FOR THE CONVEYANCE OF ELECTRIC POWER TO THE END-USERS IN THE CITY OF OLONGAPO AND ITS SUBURBS
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
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 the Olongapo Electricity Distribution Company, Inc., hereunder referred to as the grantee, its successors or assigns, a franchise to construct, install, 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 Olongapo and its suburbs.
Section 2. Manner of Operation of Facilities. –...
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Republic Acts
AN ACT GRANTING THE OLONGAPO ELECTRICITY DISTRIBUTION COMPANY
Republic Act No. 10373
Summary of Republic Act No. 10373
Nature and Scope of Franchise (Section 1):
- Grants the Olongapo Electricity Distribution Company, Inc. (the grantee) a franchise to construct, install, establish, operate and maintain a distribution system for the conveyance of electric power to end-users in the City of Olongapo and its suburbs.
Manner of Operation of Facilities (Section 2):
- The grantee shall operate and maintain its electric distribution facilities in a superior manner.
- The grantee shall modify, improve and change its facilities as required by the Energy Regulatory Commission (ERC), the Department of Energy (DOE), or any other concerned government agency.
- The grantee may allow the use of its poles, facilities or right-of-way by interested parties upon reasonable compensation, subject to the ERC's decision in case of dispute.
Authority of the ERC (Section 3):
- The grantee shall secure from the ERC the necessary certificate of public convenience and necessity and other appropriate permits and licenses for the construction and operation of its electric distribution system.
Ingress and Egress (Section 4):
- The grantee may make excavations or lay conduits in public places, highways, streets, etc., with prior approval from the Department of Public Works and Highways (DPWH) or the local government unit (LGU) concerned.
- The grantee shall repair and replace any public place, highway, street, etc., disturbed by its activities in accordance with the standards set by the DPWH or the LGU.
- If the grantee fails to repair or replace after a 10-day notice, the DPWH or the LGU shall have the right to do so at double expense to be charged against the grantee.
Responsibility to the Public (Section 5):
- The grantee shall supply electricity to its captive market in the least costly manner.
- The grantee shall modify, improve or change its facilities as required by the ERC for efficient and reliable service and reduced electricity costs.
- The grantee shall charge reasonable and just power rates to all types of consumers within its franchised areas.
- The grantee shall provide open and non-discriminatory access to its distribution system and services for any end-user within its franchise area, consistent with the Electric Power Industry Reform Act of 2001.
- The grantee shall not engage in any activity that will constitute an abuse of market power.
Rates for Services (Section 6):
- The retail rates to the grantee's captive market and charges for the distribution of electric power shall be regulated by and subject to the approval of the ERC.
- The grantee shall identify and segregate the components of the retail rate in its electricity bill to the end-users, unless otherwise amended.
- The grantee shall implement lifeline rate to marginalized end-users as mandated under the Electric Power Industry Reform Act of 2001.
Promotion of Consumer Interests (Section 7):
- The grantee shall establish a consumer desk that will handle consumer complaints and ensure adequate promotion of consumer interests.
- The grantee shall act with dispatch on all complaints brought before it.
Right of Government (Section 8):
- The President of the Philippines has the special right, in times of war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, to temporarily take over and operate the stations or facilities of the grantee, or to temporarily suspend the operation of any station or facility in the interest of public safety, security and public welfare, or to authorize the temporary use and operation thereof by any agency of the government, upon due compensation to the grantee.
Right of Eminent Domain (Section 9):
- The grantee is authorized to exercise the right of eminent domain insofar as it may be reasonably necessary for the efficient maintenance and operation of services.
- The grantee is authorized to install and maintain its poles, wires and other facilities over and across public property, including streets, highways, forest reserves and other similar property of the Government of the Philippines.
- The grantee may acquire private property as is actually necessary for the realization of the purposes for which this franchise is granted, provided that proper condemnation proceedings shall have been instituted and just compensation paid.
Warranty in Favor of National and Local Governments (Section 10):
- The grantee shall hold the national, provincial, city and municipal governments of the Philippines free from all claims, accounts, demands or actions arising out of accidents or injuries, whether to property or to persons, caused by the construction, installation, operation and maintenance of the distribution system of the grantee.
Liability to Damages (Section 11):
- The grantee shall be liable for any injury and damage arising from or caused by accident to persons and property by reason of any defective construction under this franchise or of any neglect or omission to keep its poles and wires in safe condition.
Sale, Lease, Transfer, Usufruct, etc. (Section 12):
- The grantee shall not lease, transfer, grant the usufruct of, sell nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, nor merge with any other corporation or entity, nor shall the controlling interest of the grantee be transferred, whether as a whole or in parts and whether simultaneously or contemporaneously, to any such person, firm, company, corporation or entity without the prior approval of the Congress of the Philippines.
- Congress shall be informed of any lease, transfer, grant of usufruct, sale or assignment of franchise or the rights or privileges acquired within 60 days after the completion of said transaction.
- Failure to report to Congress such change of ownership shall render the franchise ipso facto revoked.
- 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.
Equality Clause (Section 13):
- Any advantage, favor, privilege, exemption, or immunity granted under existing franchises, or may hereafter be granted shall, upon prior review and approval of Congress, become part of previously granted power distribution franchises and shall be accorded immediately and unconditionally to the grantees of such franchises.
- The foregoing shall not apply to provisions concerning territory covered by the franchise, the life span of the franchise, or the type of service authorized by the franchise.
- The foregoing shall not apply to the sale, lease, transfer, grant of usufruct or assignment of legislative franchises with prior congressional approval.
Term of Franchise (Section 14):
- This franchise shall be for a term of twenty-five (25) years from the date of effectivity of this Act.
- This franchise shall be deemed ipso facto revoked in the event that the grantee fails to operate continuously for two (2) years.
Applicability Clause (Section 15):
- The grantee shall comply with and be subject to the provisions of Commonwealth Act No. 146, as amended, otherwise known as the "Public Service Act" and Republic Act No. 9136, otherwise known as the "Electric Power Industry Reform Act of 2001".
Reportorial Requirement (Section 16):
- The grantee shall submit an annual report to the Congress of the Philippines, through the Committee on Legislative Franchises of the House of Representatives and the Committee on Public Services of the Senate, on its compliance with the terms and conditions of the franchise and on its operations on or before April 30 of the succeeding year.
Penalty Clause (Section 17):
- Any grantee who fails to submit the annual report to Congress will be fined Five hundred pesos (P500.00) per working day of noncompliance.
- The fine will be collected by the ERC from the said delinquent franchise grantee separate from the reportorial penalties imposed by the ERC.
- The collected funds shall accrue to the monitoring fund of the ERC in line with its supervisory and regulatory functions.
- The reportorial compliance certificate issued by Congress shall be required before any application for permit or certificate is accepted by the ERC.
Separability Clause (Section 18):
- If any of the sections or provisions of this Act is held invalid, all other provisions not affected thereby shall remain valid.
Repeatability and Nonexclusivity Clause (Section 19):
- This franchise shall be 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 herein provided for.
Publication (Section 20):
- This Act shall be published, through the initiative of the grantee, fifteen (15) days after this Act is signed by the President of the Philippines or has lapsed into law.
Effectivity Clause (Section 21):
- This Act shall take effect fifteen (15) days from the date of its publication in at least two (2) newspapers of general circulation in the Philippines.
Nature and Scope of Franchise (Section 1):
- Grants the Olongapo Electricity Distribution Company, Inc. (the grantee) a franchise to construct, install, establish, operate and maintain a distribution system for the conveyance of electric power to end-users in the City of Olongapo and its suburbs.
Manner of Operation of Facilities (Section 2):
- The grantee shall operate and maintain its electric distribution facilities in a superior manner.
- The grantee shall modify, improve and change its facilities as required by the Energy Regulatory Commission (ERC), the Department of Energy (DOE), or any other concerned government agency.
- The grantee may allow the use of its poles, facilities or right-of-way by interested parties upon reasonable compensation, subject to the ERC's decision in case of dispute.
Authority of the ERC (Section 3):
- The grantee shall secure from the ERC the necessary certificate of public convenience and necessity and other appropriate permits and licenses for the construction and operation of its electric distribution system.
Ingress and Egress (Section 4):
- The grantee may make excavations or lay conduits in public places, highways, streets, etc., with prior approval from the Department of Public Works and Highways (DPWH) or the local government unit (LGU) concerned.
- The grantee shall repair and replace any public place, highway, street, etc., disturbed by its activities in accordance with the standards set by the DPWH or the LGU.
- If the grantee fails to repair or replace after a 10-day notice, the DPWH or the LGU shall have the right to do so at double expense to be charged against the grantee.
Responsibility to the Public (Section 5):
- The grantee shall supply electricity to its captive market in the least costly manner.
- The grantee shall modify, improve or change its facilities as required by the ERC for efficient and reliable service and reduced electricity costs.
- The grantee shall charge reasonable and just power rates to all types of consumers within its franchised areas.
- The grantee shall provide open and non-discriminatory access to its distribution system and services for any end-user within its franchise area, consistent with the Electric Power Industry Reform Act of 2001.
- The grantee shall not engage in any activity that will constitute an abuse of market power.
Rates for Services (Section 6):
- The retail rates to the grantee's captive market and charges for the distribution of electric power shall be regulated by and subject to the approval of the ERC.
- The grantee shall identify and segregate the components of the retail rate in its electricity bill to the end-users, unless otherwise amended.
- The grantee shall implement lifeline rate to marginalized end-users as mandated under the Electric Power Industry Reform Act of 2001.
Promotion of Consumer Interests (Section 7):
- The grantee shall establish a consumer desk that will handle consumer complaints and ensure adequate promotion of consumer interests.
- The grantee shall act with dispatch on all complaints brought before it.
Right of Government (Section 8):
- The President of the Philippines has the special right, in times of war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, to temporarily take over and operate the stations or facilities of the grantee, or to temporarily suspend the operation of any station or facility in the interest of public safety, security and public welfare, or to authorize the temporary use and operation thereof by any agency of the government, upon due compensation to the grantee.
Right of Eminent Domain (Section 9):
- The grantee is authorized to exercise the right of eminent domain insofar as it may be reasonably necessary for the efficient maintenance and operation of services.
- The grantee is authorized to install and maintain its poles, wires and other facilities over and across public property, including streets, highways, forest reserves and other similar property of the Government of the Philippines.
- The grantee may acquire private property as is actually necessary for the realization of the purposes for which this franchise is granted, provided that proper condemnation proceedings shall have been instituted and just compensation paid.
Warranty in Favor of National and Local Governments (Section 10):
- The grantee shall hold the national, provincial, city and municipal governments of the Philippines free from all claims, accounts, demands or actions arising out of accidents or injuries, whether to property or to persons, caused by the construction, installation, operation and maintenance of the distribution system of the grantee.
Liability to Damages (Section 11):
- The grantee shall be liable for any injury and damage arising from or caused by accident to persons and property by reason of any defective construction under this franchise or of any neglect or omission to keep its poles and wires in safe condition.
Sale, Lease, Transfer, Usufruct, etc. (Section 12):
- The grantee shall not lease, transfer, grant the usufruct of, sell nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, nor merge with any other corporation or entity, nor shall the controlling interest of the grantee be transferred, whether as a whole or in parts and whether simultaneously or contemporaneously, to any such person, firm, company, corporation or entity without the prior approval of the Congress of the Philippines.
- Congress shall be informed of any lease, transfer, grant of usufruct, sale or assignment of franchise or the rights or privileges acquired within 60 days after the completion of said transaction.
- Failure to report to Congress such change of ownership shall render the franchise ipso facto revoked.
- 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.
Equality Clause (Section 13):
- Any advantage, favor, privilege, exemption, or immunity granted under existing franchises, or may hereafter be granted shall, upon prior review and approval of Congress, become part of previously granted power distribution franchises and shall be accorded immediately and unconditionally to the grantees of such franchises.
- The foregoing shall not apply to provisions concerning territory covered by the franchise, the life span of the franchise, or the type of service authorized by the franchise.
- The foregoing shall not apply to the sale, lease, transfer, grant of usufruct or assignment of legislative franchises with prior congressional approval.
Term of Franchise (Section 14):
- This franchise shall be for a term of twenty-five (25) years from the date of effectivity of this Act.
- This franchise shall be deemed ipso facto revoked in the event that the grantee fails to operate continuously for two (2) years.
Applicability Clause (Section 15):
- The grantee shall comply with and be subject to the provisions of Commonwealth Act No. 146, as amended, otherwise known as the "Public Service Act" and Republic Act No. 9136, otherwise known as the "Electric Power Industry Reform Act of 2001".
Reportorial Requirement (Section 16):
- The grantee shall submit an annual report to the Congress of the Philippines, through the Committee on Legislative Franchises of the House of Representatives and the Committee on Public Services of the Senate, on its compliance with the terms and conditions of the franchise and on its operations on or before April 30 of the succeeding year.
Penalty Clause (Section 17):
- Any grantee who fails to submit the annual report to Congress will be fined Five hundred pesos (P500.00) per working day of noncompliance.
- The fine will be collected by the ERC from the said delinquent franchise grantee separate from the reportorial penalties imposed by the ERC.
- The collected funds shall accrue to the monitoring fund of the ERC in line with its supervisory and regulatory functions.
- The reportorial compliance certificate issued by Congress shall be required before any application for permit or certificate is accepted by the ERC.
Separability Clause (Section 18):
- If any of the sections or provisions of this Act is held invalid, all other provisions not affected thereby shall remain valid.
Repeatability and Nonexclusivity Clause (Section 19):
- This franchise shall be 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 herein provided for.
Publication (Section 20):
- This Act shall be published, through the initiative of the grantee, fifteen (15) days after this Act is signed by the President of the Philippines or has lapsed into law.
Effectivity Clause (Section 21):
- This Act shall take effect fifteen (15) days from the date of its publication in at least two (2) newspapers of general circulation in the Philippines.