MANILA: President Ferdinand R. Marcos Jr. has signed Republic Act (RA) 12017, granting the Leyte II Electric Cooperative (LEYECO II) a 25-year franchise for the operations of its power facilities in parts of Leyte.
RA 12017 inked by Marcos on Aug. 9 authorizes LEYECO II to ‘construct, install, establish, operate, own, manage and maintain in the public interest and for commercial purposes’ a distribution system for the conveyance of electric power to the end-users in the city of Tacloban and municipalities of Babatngon and Palo in Leyte province.
All electric distribution facilities, lines, and systems for power services must be operated or maintained by LEYECO II ‘at all times,’ according to the new law.
LEYECO II is directed to secure the certificate of public convenience and necessity, as well as other license of permits for the construction and operation of the electric power distribution system, from the Energy Regulatory Commission (ERC), the National Electrification Administration (NEA) or any govern
ment agency having jurisdiction over its operations.
Under RA 12017, LEYECO II is mandated to supply electricity to its captive market in the least costly manner.
‘In the interest of the public good and as far as feasible and whenever required by the ERC, the Grantee shall modify, improve or change its facilities, poles, lines, systems and equipment for the purpose of providing efficient and reliable service and reduced electricity costs,’ the law read.
‘The Grantee shall charge reasonable and just power rates for its services to all types of consumers within its franchised areas in order that businesses and industries shall be able to compete,’ it said.
LEYECO has the obligation to provide ‘open and non-discriminatory access’ to its distribution system and services for any end-user within its franchise area, consistent with RA 9136 or the Electric Power Industry Reform Act of 2001.
The retail rates and charges for the distribution of electric power by LEYECO to its consumers will be regulated by and sub
ject to the approval of the ERC.
Such rates charged by the LEYECO to the end-users must be made public and transparent.
In times of war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, the President has the ‘special right’ to temporarily take over and operate the stations or facilities of LEYECO II, based on RA 12017.
LEYECO is prohibited from selling, leasing, transferring, granting the usufruct of, or assigning the franchise or the rights and privileges acquired under the law to any person, firm, company, corporation, or other commercial or legal entity without the prior approval of the Congress.
It is also not allowed to merge with any other corporation or entity, as well as transfer the controlling interest of LEYECO II, whether as a whole or in part, and whether simultaneously or contemporaneously, to any person, firm, company, corporation, or entity without Congress’ prior approval.
In 2022, LEYECO II was recognized by the NEA as one of the most outstanding
electric cooperatives in the country. The said award was attributed to the ‘AAA’ rating the cooperative received in the 2021 overall performance assessment and the successful implementation of its mandate on rural electrification program
The cooperative is also one of the power groups offering the lowest power rates in the region.
RA 12017, which was made public on Wednesday, takes effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation.
Source: Philippines News Agency
