President Ferdinand Marcos Jr. approved the 25-year franchise of the Leyte II Electric Cooperative (LEYECO II) which would ensure the continued power supply in parts of Leyte.
The President, on August 9, signed Republic Act 12017 which allows 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, Province of Leyte.”
Under the law, LEYECO II shall supply electricity to its captive market in the least costly manner and in the interest of the public good and as far as feasible and whenever required by the Energy Regulatory Commission (ERC).
It is tasked to modify, improve, or change its facilities, poles, lines, systems and equipment for the purpose of providing efficient and reliable service and reduced electricity costs.
It shall also charge reasonable and just power rates for its services to all types of consumers within its franchised areas. The retail rates and charges for the distribution of electric power by LEYECO II shall be regulated by and subject to the approval of the ERC.
The power cooperative also 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 Republic Act (RA) No. 9136, otherwise known as the “Electric Power Industry Reform Act of 2001”.
The law, however, prohibits LEYECO II from engaging in any activity that will constitute an abuse of market power such as unfair trade practices, monopolistic schemes, and other activities that will hinder competitiveness of businesses and industries.
Prior to the approval of the franchise, LEYECO II was recognized in 2022 by the National Electrification Administration (NEA) as one of the most outstanding electric cooperatives in the country after receiving an “AAA” rating in 2021 for its overall performance assessment and the successful implementation of its mandate on rural electrification program.
