Section 1Sec./Art. 1

Nature and Scope. - Subject to the provisions of the Constitutions and applicable laws, rules, and regulations, the franchise granted to Manila Electric Company (MERALCO), hereunder referred to as the Grantee, its successors, or assignees, under Republic Act No. 9209, to construct, operate, and maintain in the public interest and commercial purposes, a distribution system for the conveyance of electric power to the end-users in the cities of Caloocan, Las Pias, Makati, Malabon, Mandaluyong, Manila, Markina, Muntinlupa, Navotas, Paraaque, Pasay, Pasig, Quezon, San Juan, Taguig, and Valenzuela and in the Municipality of Pateros in Metro Manila; cities of Baliwag, Malolos, Meycauayan, and San Jose del Monte and in the municipalities of Angat, Balagtas, Bocaue, Bulakan, Bustos, Calumpit, Doa Remedios Trinidad, Guiguinto, Hagonoy, Marilao, Norzagarayn, Obando, Pandi, Paombong, Plaridel, Pulilan, San Ildefonso, San Miguel, San Rafael and Sta.

Maria, Province of Bulacan; cities of Bacoor, Carmona, Cavite, Dasmarias, General Trias, Imus, Tagaytay, and Trce Martires, and in the municipalities of Alfonso, Indang, Kawit, Magallanes, Maragondon, Mendez, Naic, Noveleta, Rosario, Silang, Tanza, Ternate, Province of Cavite; City of Antipolo and in the municipalities of Angono, Baras, Binangonan, Cainta, Cardona, Jala-Jala, Montalban, Morong, Pililia, San mateo, Tanay, Taytay, and Teresa, Province of Rizal; cities of Batangas and Sto. Tomas and in the Municipalotu of San Pascual, Province of Batangas; cities of Bian. Cabuyao, Calamba, San Pablo, San Pedro, Sta. Rosa and in the municipalities of Alaminos, Bat, Calauan, Liliw, Los Baos, Luisiana, Magdalena, Majayjay, Nagcarlan, Pila, Rizal, Sta.

Cruz, and Victoria, Province of Lagunal cities of Lucena and Tayabas and in the municipalities of Candelaria, Dolores, Lucban, Mauban, Pagbilao, Sampaloc, San Antonio, Sariaya, and Tiaong, Province of Quezon; barangays of Balucuc and Calantipe in Apalit, Pampanga; Barnagay Concepcion in San Simon, Pampanga; and barangays of Bahay Pare, Barangca, Dulong Ilog, Magumbali, Mandili, Mapaniqui, Paliqui, Pangclara, Pulong Gubat, Pulong Palazan, Salapungan, Vizal San pablo, Vizal Santo Cristo, and Vizal Sto. Nio in Candaba, Pampanga, is hereby renewed.

As used in this Act, distribution system refers to the system of wires and associated facilities including sub-transmission lines belonging to or used by a franchised distribution utility extending between the delivery point on the national transmission system or generating facility and the metering point or facility of the end-user.

The Grantee shall:

(a) Uphold its commitment to the protection of consumer rights;

(b) Ensure the efficient and reliable delivery of electric power services; and

(c) Adhere to competitive market principles.