Davao power co-op urges Marcos to veto bills on firm鈥檚 expansion
DEFENDING FRANCHISE Protesters march on Feb. 4 in Tagum City against the extension of Davao Light and Power Co.’s franchise in Davao del Norte and Davao de Oro currently being served by the Northern Davao Electric Cooperative. —Chris Panganiban
TAGUM CITY, DAVAO DEL NORTE, Philippines — Officials of the Northern Davao Electric Cooperative (Nordeco) have appealed to President Marcos to veto two congressional bills allowing the Aboitiz-owned Davao Light and Power Co. (DLPC) to take over its franchise areas.
In a letter delivered to Malacañang on Feb. 6, signed by at least 28 Nordeco officials and received by Executive Secretary Lucas Bersamin, Nordeco raised concern over a potential violation of the constitutional principle of “nonimpairment of contracts,” other legal issues, and the adverse economic and social impacts of the bills.
The appeal came two days after 4,000 protesters, including cooperative members and those from the local clergy, marched in Tagum City to raise their concerns over Senate Bill No. 2888 and House Bill (HB) No. 11072 extending the DLPC franchise to cover areas in Davao del Norte and Davao de Oro.
Nordeco acting general manager Elvera Alngog, in a statement, said Marcos vetoed a similar bill in 2022 and hoped the President would do the same this time.
Nordeco said the approval of the bills would jeopardize the jobs of around 800 workers, many of whom had been working for Nordeco for decades.
Ryan Tigao, vice president of the United Daneco Employees Welfare Association, raised during the Tagum rally their employment concerns, as there was no guarantee that Nordeco workers would be absorbed by DLPC, once it would take over Nordeco’s franchise areas.
According to Nordeco, HB 11072, which passed with minimal opposition, is now under scrutiny for its potential violation of the constitutional principle of the “nonimpairment of contracts,” as Nordeco’s current franchises, expected to end in 2028 for the Davao mainland and in 2033 for Samal Island, would be interrupted by the proposed legislation, effectively nullifying its valid, contractually guaranteed franchise terms.
Nordeco also argued that the bill violates the Electric Power Industry Reform Act Law, which guarantees electric cooperatives’ franchises for their full term.
DLPC has declined to comment on the concerns raised by Nordeco. Fermin Edillon, head of DLPC’s reputation enhancement department, only said the company was “very grateful” and acknowledged the progress of the bills, as [they] now passed the third reading in the Senate and were “waiting for the office of the President’s final action.”
“We remain committed to providing safe, reliable, quality, and efficient electricity service to our customers and will continue to work closely with stakeholders to ensure a smooth transition should the bill be enacted into law,” he said in a statement.
