President Marcos has approved the franchise bid of Romblon Electric Cooperative, Inc. (Romelco) to establish power supply in three island municipalities of the province.
Through Republic Act 12020, signed on Aug. 29, Romelco was granted a 25-year franchise “to construct, install, establish, operate, own, manage and maintain distribution systems for the conveyance of electric power to end-users in the municipalities of Banton, Corcuera, and Concepcion, Province of Romblon.”
Under the act, Romelco is mandated to supply electricity to consumers “in the least costly manner.”
“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,” the new law stated.
The retail rates and charges will be regulated by and subject to the approval of the Energy Regulatory Commission (ERC).
According to the law, it is also the duty of Romelco to operate and maintain all electric distribution facilities and systems “in a superior manner” at all times.
The Romelco also has the power to modify, improve, and change the facilities and systems “in such manner and to such extent as the progress in science and technology and improvements or innovations in the electric power services may render reasonable and proper” upon approval by energy bodies such as the ERC, Department of Energy (DOE), and National Electrification Administration (NEA), which have jurisdiction over its operations.
Aside from providing electricity, the cooperative is expected to provide employment opportunities for the locals and required to allow on-the-job training in their franchise operation.
The law also mandated Romelco to establish a consumer desk to handle consumer complaints.
It is also required to submit an annual report to Congress on its compliance with the terms and conditions of the franchise and on its operations on or before April 30. Failure to do so shall make the cooperative liable to a fine of P500 per working day to be collected by the ERC.