Manila: President Ferdinand R. Marcos Jr. has enacted Republic Act (RA) 12306, granting the Pampanga Rural Electric Service Cooperative (PRESCO) Inc. a 25-year franchise to operate and maintain a power distribution system across four towns in Pampanga province.
According to Philippines News Agency, the newly signed law empowers PRESCO to construct, install, establish, manage, and operate electricity distribution facilities in 34 barangays within the municipalities of Mexico, Arayat, Sta. Ana, and Magalang. The franchise mandates PRESCO to deliver reliable and affordable electricity service, ensure non-discriminatory access to its system, and advocate for consumer protection through a dedicated consumer desk.
The cooperative is also required to adhere to labor standards, generate employment opportunities, and facilitate on-the-job training for local residents. The law mandates PRESCO to obtain regulatory approval from the Energy Regulatory Commission (ERC), the Department of Energy (DOE), and the National Electrification Administration (NEA) for its operations. Additionally, the government retains the authority to temporarily assume control of the facilities during war, calamities, or other emergencies.
The franchise is set to last for 25 years, beginning from the expiration of its current franchise, unless it is canceled or revoked earlier. PRESCO is also obligated to submit annual operational and compliance reports to Congress, with penalties imposed for non-compliance.
