President Marcos Grants 25-Year Franchise to Leyte II Electric Cooperative

TACLOBAN — President Ferdinand R. Marcos Jr. has signed into law Republic Act (RA) 12017, authorizing a 25-year franchise renewal for Leyte II Electric Cooperative (LEYECO II) to continue its operations and maintain power facilities across key areas in Leyte. This legislative action aims to ensure stable and cost-effective electricity distribution in the region.

According to Philippines News Agency, signed on August 9, LEYECO II is empowered to construct, operate, and maintain an electric power distribution system for the city of Tacloban and the municipalities of Babatngon and Palo. The law stipulates that LEYECO II must manage its facilities to meet public and commercial needs effectively and continuously. It also mandates the cooperative to procure necessary approvals and permits from the Energy Regulatory Commission (ERC), the National Electrification Administration (NEA), or any relevant government body overseeing its operations.

Under the new law, LEYECO II is required to supply electricity to its designated market affordably, striving for efficiency and reliability in its service to foster economic competitiveness within its service areas. The law emphasizes that LEYECO II must adjust its facilities as needed to optimize service quality and reduce electricity costs, as directed by the ERC.

Furthermore, RA 12017 ensures that LEYECO II upholds a transparent pricing policy, with retail rates and charges for electric power subject to ERC approval and public disclosure. The cooperative is also expected to provide equitable access to its distribution system, adhering to the standards of the Electric Power Industry Reform Act of 2001.

In special circumstances such as war, calamity, or public emergency, the President is granted the authority to temporarily take over LEYECO II’s operations to maintain public order and safety. Additionally, any significant corporate decisions, including mergers, acquisitions, or franchise transfers, must receive Congressional approval to proceed.

The signing of RA 12017 not only recognizes LEYECO II’s past performance, including a ‘AAA’ rating from the NEA for outstanding service and successful rural electrification initiatives but also entrusts the cooperative with continued responsibility to provide low-cost power solutions to one of the region’s most vital service areas.

This law will officially take effect 15 days after its publication in the Official Gazette or a newspaper of general circulation.