Davao: The Northern Davao Electric Cooperative (NORDECO) has appealed to President Ferdinand R. Marcos Jr. to veto the bill that would expand the franchise of the Davao Light and Power Co., Inc. (DLPC) into areas currently served by NORDECO. The bill, recently approved on the third and final reading by the Senate, will extend DLPC’s reach into portions of Davao del Norte and the entire Davao de Oro.

According to Philippines News Agency, NORDECO acting general manager Elvera Alngog, in a letter, said the bill – House Bill (HB) 11072/Senate Bill 2888 – contains similar “constitutional and legal infirmities” as HB 10554, which the President vetoed in 2022. That bill also sought to expand DLPC’s franchise in Davao del Norte. Alngog noted that HB 11072 violates the Non-Impairment of Contracts clause of the 1987 Constitution, as NORDECO holds valid franchises until 2028 for the mainland and 2033 for the Island Garden City of Samal.

She said the bill would allow DLPC to encroach on NORDECO’s service area before its franchises expire. The cooperative also contends that the bill contravenes Section 27 of the Electric Power Industry Reform Act (EPIRA), which protects electric cooperatives by guaranteeing their franchises to full term. Alngog warned that allowing DLPC’s takeover would set a “dangerous precedent” and undermine rural electrification efforts.

NORDECO also highlighted potential negative economic and social consequences, including threats to the government’s Sitio Electrification Program and the displacement of approximately 800 NORDECO employees. Alngog appealed to the President to veto HB 11072 once passed into law, as he did with the similar HB 10554.

The advocacy group Davao Consumer Movement, meanwhile, said the bill would mean more choices for power consumers in the two provinces, as well as “better opportunities for businesses and investors.” “We believe that with a more capable power distributor, those living in the areas served by Davao Light will be able to enjoy affordable and reliable power,” the group said in a recent statement. It said residents would be able to enjoy more savings as ‘power rates are expected to be lower compared to the current rates of the NORDECO.’ The group added that the bill ensures that qualified NORDECO employees will be absorbed by Davao Light.