Topic: House Bill 8179

25-year franchise to solar power to Bayan Corporation which will allow the corporation to operate and distribute power
technologies and mini (bridge) systems to provide electric power to end users and customers determined by the
Department of Energy and unserved areas that are contrary to R.A. 9136 or the EPIRA law.

 http://web.philreca.org/wp-content/uploads/2018/11/PP_Opposition-to-House-Bill-8179-and-SPSBC.pdf
 Granting a Franchise to Operate in an Area where an Existing Distribution Utility Operates is a Violation of
Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA)

o Solar Para Sa Bayan Corporation Cannot Offer Cheaper and More Affordable Electricity and Energy
Cost; Instead, It Will Only Charge the Consumers a Higher Rate

For Solar Para Sa Bayan Corporation to operate, it should either (1) usurp control over an existing
franchise and its existing facilities, or (2) build its own distribution system. The first option shows an
ignorance or clear disregard of the legal framework provided for under the EPIRA, while the second
option reflects deficiency in applying and understanding economic principles.

If, on one hand, SPSBC intends to replace an existing franchise and take over its distribution system,
then, it appears to be disregarding the legal guarantee granted to that existing electric cooperative
by the EPIRA to possess its franchise until the expiration of its full term.

If, on the other hand, SPSBC intends instead to build its own distribution system, then, this clearly
reflects poor grasp of principles in Economics. As explained earlier, distribution utilities are natural
monopolies because of the necessity of keeping costs low. SPSBC, if granted a national franchise to
operate as a distribution facility, will then construct duplicate distribution system and redundant
facilities to serve the same customers. The resulting cost of this duplication and the provision for the
distribution utility’s profit will be recovered from its customers in the form of electric distribution
rates. And surely, this would not be cheap. (?)
 https://philippinepowerinsights.wordpress.com/2018/10/08/solar-para-sa-bayan-mini-grid-franchise-is-a-trojan-horse-
part-1/
 http://matuwid.org/the-solar-para-sa-bayan-mini-grid-franchise-is-a-trojan-horse-part-
2/?fbclid=IwAR0_e3L4ujC9BA_nenxIss3_HpRgvPXxNDHmGAHo38FJGd6xREx1J4RdZX8

Legality of an unregulated mini-grid franchise

What we have here is a proposed congressional franchise that effectively grants an electricity service
provider to charge rates without ERC regulation. They are only using “ERC approved” rates in nearby
distribution utilities as reference. The power industry’s law of the land, The EPIRA Law or R.A. 9136, clearly
provide that the distribution and retailing of electricity are regulated sectors. My question is does the House
Committee on Legislative Franchises have the power to grant franchises that are above the law? In this
case the EPIRA Law?
SPSBC argues that mini-grids are not contemplated in the EPIRA law. Even if we grant that the EPIRA law
did not mention the words mini-grid, (and the highfalutin “distributable power technologies”) it is still a
form of distributing electricity and a form of retailing electricity.
If we take out the need for the incumbent DU to waive a service area under the current QTP rules, this
mini-grid service is already covered by the EPIRA’s Qualified Third Party provisions. Just a little
tweaking.
https://philippinesgraphic.net/who-will-benefit-from-a-national-franchise-for-solar-power-conclusion/

https://www.doe.gov.ph/energist/local-solar-re-company-critics-we-don%E2%80%99t-intend-create-power-monopoly

http://manilastandard.net/business/business-columns/ray-s-e-ano/276472/solar-franchise-aims-to-cut-electricity-rates.html

https://matuwid.org/the-solar-para-sa-bayan-mini-grid-franchise-is-a-trojan-horse-part-2/

https://www.philstar.com/business/2018/09/25/1854336/consumer-groups-back-bill-solar-para-sa-bayan-franchise

https://www.bworldonline.com/house-resolution-seeks-to-block-national-franchise-for-solar-firm/

https://newsinfo.inquirer.net/1036781/house-leader-solar-franchise-will-break-monopoly-in-power-sector

 https://www.youtube.com/watch?v=zKLe1xp4iQw
“Why is there a need to get a nationwide franchise when the law already allows qualified 3 rd parties to already enter
into isolated areas?”

Leandro Leviste: “Franchise is not only for Solar but a ’mini-grid’ which would serve not only a single house but
municipalities or larger areas with its own integrated system. The current process of entering into such undertaking
requires prior consent from existing service provider, and the latter, despite its deficiencies in its service, does not
actually give out consent to private entities meaning to engage in the said service. Right now, we are able to build solar
mini-grids to which the Government does not spend on in contrast with the current state that we are actually paying as
much as P50 billion annually for subsidies to electric utilities. Under the current proposal, not only would the
Government be saving such amount annually, the service would also be more expeditious ”

- https://www.docdroid.net/CUPunls/crest-position-paper-on-house-bill-8179.pdf?fbclid=IwAR05qZO4iFcwM-
XYQwQpvc11krXtDQOSjZ2J7SO_n9-V7BePMASOeDMfYu4

petition https://www.change.org/p/philippine-government-we-oppose-the-passage-of-hb-8179-granting-a-nationwide-franchise-to-
solar-para-sa-bayan