Section 5Sec./Art. 5

Responsibility to the Public. - The Grantee shall provide universal service and supply electricity to its captive market in urban and rural portions of its franchise area, including unviable areas, in the least cost manner, In the interest of the public good and as far as feasible and whenever required by the ERC, the Grantee shall modify, improve, or change its facilities, poles, lines, systems, and equipment for the purpose of providing efficient and reliable service and reduced electricity costs. The grantee shall only charge reasonable and just power rates for its services to all types of consumers within its franchise area in order that businesses and industries shall be able to compete. The Grantee shall promote and promptly process applications for net-metering connections.

The Grantee shall perform such acts as may be reasonably necessary or desirable to promote laws, regulations, and policies of the government with respect to the development, utilization, and prioritization of indigenous natural, new, and renewable energy sources in accordance with Republic Act No. 9136 or the "Electric Power Industry Reform Act of 2001", as amended; Republic Act No. 12120 or the "Philippine Natural Gas Industry Development Act"; and Republic Act No. 9513 or the "Renewable Energy Act of 2008", and avoid acts that may frustrate or hinder the same.

The Grantee shall have 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 No. 9136, as amended. It shall observe good faith and reasonableness in implementing any contractual right in its power supply agreements to reduce contract capacity and associated energy by reason of the enforcement of retail competition and open access under Republic Act No. 9136, as amended, Republic Act No. 9513, and other applicable laws, and ensure the supply of electricity to its captive market in the least cost manner.

The Grantee, and its affiliates as defined under Republic Act No. 9136, as amended, shall not engage in any activity that will constitute an abuse market position or anti-competitive behavior as defined under Republic Act No. 10667 or the "Philippine Competition Act" such as but not limited to, unfair trade practices, monopolistic schemes, and other activities that will hinder competitiveness of business and industries. The Grantee shall follow the regulations of the DOE and ERC with respect to its procurement of power supply for its captive market.

The Grantee shall, for the promotion of transparency, competition, and protection of consumer interest, structurally and functionally unbundle its non-regulated business activities from its regulated business activities in accordance with Republic Act No. 9136, as amended, The ERC shall formulate the appropriate guidelines and ensure full compliance with this provision.

The Grantee shall faithfully observe the provisions of Republic Act No. 9136, as amended, with respect to cross-ownership, market share limitations, retail competition and open access, market power abuse, and anti-competitive behavior. The Grantee shall fulfill its responsibility under Republic Act No. 9136, as amended, Republic Act No. 10150, Republic Act No. 9994, and other relevant statutes and policies.