The Philippine Congress has granted two electric cooperatives 25-year franchises to construct and operate power distribution systems covering 20 towns across Laguna and Camarines Sur, the Presidential Communications Office announced.

Republic Act (RA) No. 12278 authorizes First Laguna Electric Cooperative, Inc. (FLECO) to serve Cavinti, Pagsanjan, Lumban, Kalayaan, Paete, Pakil, Pangil, Siniloan, Famy, Mabitac, and Sta. Maria in Laguna. Meanwhile, RA No. 12277 gives Camarines Sur IV Electric Cooperative, Inc. (CASURECO IV) the mandate to operate in Ocampo, Tigaon, Sagñay, Goa, San Jose, Lagonoy, Presentacion, Garchitorena, and Caramoan in Camarines Sur.

Both cooperatives are authorized to make excavations in public spaces to install and maintain electric poles or other supports, provided they obtain approval from the Department of Public Works and Highways (DPWH). The laws specify: “If the grantees fail to repair any highway, road, street, lane, alley, avenue, sidewalk, or bridge they have altered within 10 days, the DPWH or the concerned local government unit shall undertake the repair and replacement, and charge the grantees double the cost and expenses incurred.”

Retail rates and charges for electricity distribution by FLECO and CASURECO IV will fall under the supervision of the Energy Regulatory Commission (ERC). Both cooperatives are also required to submit annual operational reports to the Senate and House of Representatives by April 30 each year, with penalties of PHP 500 per working day for late submissions. 

How do you see these new franchises impacting distribution reliability and local development in these provinces? Share your thoughts.

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