CONGRESS OF THE PHILIPPINES TWENTIETH CONGRESS First Regular Session HOUSE OF REPRESENTATIVES H. No. 7647 BY REPRESENTATIVES GARIN, AYON, FERRER (J.) AND SALCEDA AN ACT FURTHER AMENDING SECTIONS 1, 16, AND 21 OF REPUBLIC ACT NO. 11212, AS AMENDED BY REPUBLIC ACT NO. 11918, 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" Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Section 1 of Republic Act No. 11212, as amended by Republic Act No.
11918, is hereby further 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 lloilo 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, GUIMBAL, IGBARAS, MIAGAO, OTON, SAN JOAQUIN, TIGBAUAN AND TUBUNGAN, ALL in the Province of lloilo. "As used in this Act, distribution system refers to 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."
SEC. 2. Section 16 of Republic Act No. 11212, as amended by Republic Act No. 11918,
is hereby amended to read as follows: "SEC. 16. Dispersal of Ownership. - In accordance with the constitutional provision to encourage public participation in public utilities, the grantee shall offer to the public, specifically Filipino citizens at least thirty percent (30%) or a higher percentage that may hereafter be provided by law of its outstanding capital stock in any securities exchange in the Philippines within five (5) years from the commencement of its operations IN THE EXPANDED FRANCHISE AREA UNDER THIS AMENDMENT COVERING GUMBAL, IGBARAS, MIAGAO, OTON, SAN JOAQUIN, TIGBAUAN AND TUBUNGANTI; Provided, That in cases where a public offer of shares is not applicable, other methods of encouraging public participation by citizens and corporations operating public utilities must be implemented. In the event the required dispersal of ownership is not implemented within five (5) years, the holdings of persons, natural or juridical, including directors, officers, stockholders, and related interests in the Grantee and its respective holding company, if any, shall not exceed twenty-five percent (25%) of the voting shares of stock, unless the utility or the company holding the shares or its controlling stockholders are already listed in the Philippine Stock Exchange. Non-compliance therewith shall render the franchise ipso facto revoked.
SEC. 3. Section 21 of Republic Act No. 11212, as amended by Republic Act No. 11918,
is hereby further amended to read as follows: "SEC. 21. Market Abuse or Anti-Competitive Behavior. - The ERC, in the exercise of its function, shall determine if there is any market abuse or anti- competitive behavior by any party to any existing power sales agreement covering the cities of lloilo 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, GUIMBAL, IGBARAS, MIAGAO, OTON, SAN JOAQUIN, TIGBAUAN AND TUBUNGAN, in the Province of Iloilo, the ERC shall order the amendment of any contract which, after due determination, is found to be grossly disadvantageous. "Notwithstanding any ERC action, the parties of any affected power sales agreement may, in accordance with the dispute resolution clause of these power sales agreement or such other applicable clause, enter into a negotiation for the reduction of any tariff or rates under the power sales agreement. "Any amendment of the power sales agreement under this clause shall not, however, diminish or impair a party's financial investment entered into pursuant to the said agreement."
SEC. 4. All laws, decrees, orders, rules and regulations or other issuances or parts
thereof inconsistent with the provisions of this Act are hereby repealed and modified accordingly.
SEC. 5. If any portion or provision of this Act is declared unconstitutional, the remainder
of this Act or any provision not affected thereby shall remain in force and effect.
SEC. 6. This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation. Approved,