Section 22Sec./Art. 22

Penal Provisions. - (1) Failure of the grantee to submit the requisite annual report to Congress shall be penalized by a fine of Five thousand pesos (P5,000.00) per working day of noncompliance. The fine shall be collected by the DOE from the delinquent franchise grantee separate from the reportorial penalties imposed by the DOE. (2) The ERC shall allow the grantee sufficient time to remedy any interruption but in no case exceed thirty (30) days from the issuance of a written notice to that effect.

Failure by the grantee to meet any service obligation which continues for more than thirty (30) days, after written notice thereof from the ERC, shall constitute a basis to assess financial penalties against the grantee. Such penalties shall be determined by the ERC in accordance to Republic Act No. 9136, its implementing rules and regulations or any circular or order or resolution of the ERC. The grantee shall pay any penalties assessed in connection with this section to the ERC within sixty (60) days after receipt of a demand thereof. Such penalties shall not be regarded as an expenditure of the grantee.