R No.

5570

-s-

Begun and held in Metro Manila, on Monday, the twenty-seventh

day of Jiriy, two thousand fifteen.

[REPUBLIC ACT NO. 10892]

AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25)

Y E A R S T H E F R A N C H I S E G R A N T E D TO I B A A N
E L E C T R I C CORPORATION (FORMERLY IBAAN
E L E C T R I C AND E N G I N E E R I N G CORPORATION) TO
C O N S T R U C T , O P E R A T E , AND M A I N T A I N A N
E L E C T R I C LIGHT, HEAT, AND POWER SYSTEM I N
T H E M U N I C I P A L I T Y O F IBAAN, P R O V I N C E O F
BATANGAS UNDER R E P U B U C ACT NO. 7578

Be it enacted by tke Senate and House of Representatives of the

Philippines in Congress assembled:

S E C T I O N l . N a t u r e and Scope of F r a n c h i s e , - Subject

to l^e provisions of the 19S7 Philippine Constitution and applicable
laws, ndes and regidatioas, the £candbise granted to Ibaan Eiectric
Corporation (formerly known as Ibaan Electric and Enguieering
Corporation) under Republic Act No. 7578, entitled "An Act
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Granting the Ibaan Electric and Engineering Corporation a

Franchise to Construct, Operate and Mainteiin an Electric light, SEC. 4, Excavation
Heat and Power System in the Municipality of Ibaan, Province purpose of erecting a
of Batangas, and for Other Purposes", is hereby renewed for supports for the wires
another twenty-iive (25) years &om the effectivity of this Act. laying and maintaining
conductors, it shall bo
assignees, with the pr
As used in this Act, distribution system refers to the Works aiid Highw^ (D
systems of wires and associated facilities including concerned, as may be
subtransmission lines beloi^;ing to a &ancliised disUibution utihty conduits in a i ^ of the
extending between the dehveiy point on the national transmission lanes, alleys, avenue
system or generating facility and the metering point/facility of municipahty; Provided, f
the end user. road, street, lane, alle
altere^d, or changed b
SEC. 2. M a n m r of Operation of F a c i l i t i e s . - All electric supports or the imdergr
distribution facilities, lines, and systems for electric services conduits shall be repair
owned, maintained, operated, or managed by the grantee, its at the expense of the
successors or assignees, shall be operated and maintained at all accordance with the s
times in a superior manner, and it shall be the duty of the grantee, concerned. Should the
its successors or assignees, whenever required to do so by the the ten (lO)-day notic
^ 'Energy Regulatory Commission (ERC) or its legal successor, or neglect to repair or repl
the Department of Energy (DOE) or its legal successor, or any road, street, lane, all
other government agency concerned, to modify, improve, and changed, or disturbed
change the facilities or systems in such a manner and to such assignees, then the D
extent as the progress in science and improvements in the electric right to have the sam
power semces may render reasonable and proper. condition at double exp
successors or assigne
Whenever practicable and for purposes of maintaining
order, safety, and aesthetics along highways, roads, streets, alleys SEC. 5. Responsi
or right-of-way, the grantee may allow the use of iree spaces in suppfy electricity to its
its poles, faciUtiee, or right-of-way by interested parties upon In the interest of the
reasonable compensation to the grantee, considering the cost whenever requiredby t
incurred to accommodate and admimeter the use of the grantee's or change it^ fadlities,
faciUties by such parties. The ERC shall decide incase of dispute the purpose of providin
or disagreement between parties. electricity costs. The
^ power rates for its ser
SEC. 3. A u t f i o r i t y o f t h e E R C / D O E . - The grantee shall franchised areas in o
•'^ secure ftom the ERC, D OE or any other government agency which able to compete.
has jinisdiction over the operation of the herein grantee, tlie
necessary certificate of pnbHc convenience and necessity and The grantee sha
other appropriate permits and licenses for the construction and nondiscriminatory acc
operation of its electric distribution system. for any end user within
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Act No. 9136, otherwise loiown as the "Electric Power Industry maintain its poles, wi
Reform Act of2001". The grantee shall not engage in any activity pubhc proper^ includi
that will constitute an abuse of market power such as unfair other similar property
trade practices, monopoUstic schemes, and other activities that its branches, or any o
will hinder competitiveness of business and industries. acquire such private
realization of the purp
SEC. 6. Rates for Services. — The retaiLrates and charges Provided, That proper
for the distribution of electric power by the grantee to its end instituted and just com
user shall be regulated by and be subject to the approval of the
ERC or its legal successor. SEC. 10. Term o
effect for a period of
The grantee shall identify and segregate ui its electricity efilectiviiy of this Act, u
biU to the end users the components of the retail rate pursuant be deemed ipso facto
to Republic Act No. 9136, unless otherwise amended. Such rates opera|« continuously f
charged by the grantee to the end users shall be made pubhc and
transparent. The grantee shall implement lifeline rate to SEC. 11. Accepta
marginalized end users as mandated imder RepubUc Act No. 9136. this francliise shall b
Phihppines, through t
SEC. 7. Promotion of Consumer Interests. - The herein the House of Repre
\grantee shaU establish a consumer desk that will handle consumer Services of the Senat
^ complaints and ensure adequatepromotionof consumerinterests. of this Act. Upon such
The grantee shall act with dispatch on all complaints brought privileges granted un
before it. the franchise void.

SEC. S. R i g h t of Government. - A specied right is hereby SEC. 12. Warran

reserved to the President of the Phihppines, in times of war, Governments. - The
rebellion, public peril, calamity, emergency, disaster or city and municipal gov
disturbance of peace and order: to temporarily take over and claims, accounts, de
operate the stations or facilities of the grantee; to temporarily injuries, whether to
suspend the operation of ar^ station or facility in the interest of construction, installat
public safety, security and pubhc welfare; or to authorize the distribution s j ^ m of t
temporary use and operation thereof by any agency of the
govemmeixt, upon due compensation to the grantee, for the use of SEC. 13. L i a b i l
the stations or faciUties durmg the period when these shall be so liable for any injmy and
operated. to persons and prope
under this franchise
poles and wires in sa
^ SEC. 9. R i g h t of E m i n e n t D o m a i n . - Subject to the
limitations and procedures prescribed by law, the grantee is
authorized to exercise the right of eminent domain insofar as it SEC. 14. Sale,
may be reasonably necessary for the efficient maintenance and of F r a n c h i s e . - The
operation of services. The grantee is authorized to install and the usufruct of, nor
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privileges acquired thereunder to any person, firm, company, SEC. 17, Penalty
corporation, or other commercial or legal entity, nor merge with the requisite annual re
auj' other corporation or entity, nor shall transfer the controlling fine in the amount of fi
interest of the grantee, whether as a whole or in parts, and whether day of noncompliance.
simultaneously or contemporaneouefy, to any such person, firm, from the delinquent f
company, corporation, orentity without the prior approval of the reportorial penalties im
Congress of the Plulippines: Provided, That Congress shall be fines or penalties sha
informed of any lease, taransfer, granting the usufruct of, sale, or in line with its supervis
assignment of franchise or the rights or privileges acquired
thereunder, or the merger or sale of the controlling interest witliin SEC. 18. Equality
sixty (60) days after the completion of said transaction: Provided, exemption, or immmiit
f u r t h e r . That any such transfer, sale or assignment is in wliich may hereafter be
accordance with the constitutional limitations: Provided, of Congress, shall be
f u r t h e r m o r e , That failure to report to Congress such charge of accorded immediately
ownership shall render the franchise ipso facto revoked: Provided, Iwwever, T
Provided, f i m l l y . That any person or entity to wliich tliis franchise affect provisions conc
is sold, ta-ansferred, or assigned shall be subject to the same the life span of the fran
conditions, terms, restrictions, and limitations of this Act. the fr'anchise:Provided,
app^ to the sale, leas
SEC. 1G. Dispersal of Ownership. ~ In accordance with of legislative frau^ises
the constitutional provision to encourage public participation in
pubhc utihties, the grantee shall offer to KUpino citizens at least SEC. 19. Applicabi
thicty percent (30%) of its outstanding capital stock or a higher with and be subject t
percentage that may hereafter be provided by law in any securities No. 146, as amended
exchange in. the Philippines within five (5) years fr'om the Act" and RepubUc Act
commencement of its operations: Provided, That in cases where Power Industry Refor
public offer of shares is not applicable, establishment of
cooperatives and other methods of encouraging pubUc participation
by citizens and corporations operating pubhc utihties must be SEC. 20. Separabil
implemented. Nonoomphance therewith shall render the fr'anchise provisions of this Act is
ipso facto revoked. thereby shall remain v

SEC. 21. Repealab

SEC. 16. R e p o r t o r i a l Requirement. - The grantee shall fr'anchise shall be su
submit an annual report to the Congress of the Plulippines,
the Congre es of the
through the Committee on Legislative Franchises of tiie House of
requires and shaU not
Representatives and the Committee on Public Services of the
privileges herein provi
Senate, on its comphance with the terms and conditions of the
franchise and on its operations on or before April 30 of the
succeeding year. The reportorial compliance certificate issued by
Congress shall be required before any apphcation for permit or
certificate is accepted by the ERC.
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SEC. ZZ. Effectivity. - This Act shall take effect fifteen

(15) days after its publication in the Official Gazette or in a
newspaper of general drcidation.

Approved,

FpNKLINM.DRILON FELICIANO BELMONTE JR.

Speaker of the House
of Representatives

This Act which originated i n ^ the House of

Representatives was passed by tfee House of
Representatives and the Senate on October 9, 2015 and
June 6,2016, respectively.

OSCAR^SrYABES MARDLYN B A R U ^ A P
Secretary of the Senate Secretary Genercd.
Hoiise of Representatives

Approved:

BENIGNO S. AQUINO IH
President of the Philippines

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