Davao Light and Power Company (DLPC) linemen. MindaNews file photo
DAVAO CITY (MindaNews / 08 August) – A consumer’s organization in the Davao Region urged President Ferdinand “Bongbong” Marcos Jr. “to rectify his mistake” of vetoing House Bill (HB) 10554, following the recent decision of the Supreme Court en banc stating that electric cooperatives don’t have a “constitutional right to an exclusive franchise.”
HB 10554, vetoed in July 2022, would have expanded the franchise area of the Aboitiz-owned Davao Light and Power Company (DLPC) to Tagum City, Island Garden City of Samal, and the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod. These areas are being served by the North Davao Electric Cooperative Inc. (Nordeco).
In a statement on Thursday, Ryan Amper, Davao Consumer Movement convenor, said the development of the province must be supported as the residents continue to endure costly electricity rates and frequent brownouts.
“With the Supreme Court’s decision, the government now has the opportunity to correct this mistake and support Davao del Norte in becoming a more competitive and progressive province in Southern Mindanao,” he said.
Amper was referring to the July 30, 2024 ruling in Iloilo Electric Cooperative, Inc. [ILECO I], et al. v. Executive Secretary Lucas P. Bersamin, et al.), penned by Associate Justice Rodil V. Zalameda, where the Court dismissed the petition of ILECO challenging the constitutionality of Republic Act No. 11918, which expanded the franchise of another electricity provider, MORE Electric and Power Corporation (MORE), to areas within ILECOs’ franchise.
In that case, the Court acknowledged the beneficial effect of competition to the power industry.
It also noted that as a state-granted privilege, a franchise is not an exclusive private property of any franchisee, and must yield to serve common good, as the Congress may determine.
Amper said the veto of HB 10554 “failed to prioritize the common good of the residents of the province.”
“The Supreme Court en banc’s recent decision regarding electric cooperatives’ lack of a constitutional right to an exclusive franchise underscores the error in vetoing a bill that had aimed to improve the power situation in Davao del Norte,” he said.
DLPC currently services Davao City, Panabo City, and the municipalities of Carmen, Dujali and Sto. Tomas in Davao del Norte. (Antonio L. Colina IV / MindaNews)
