The bill on President Marcos' desk seeks to replace the underperforming North Davao Electric Cooperative (Nordeco) with Davao Power & Light Co. (DPLC). This move has been met with opposition from Nordeco and its supporters, but consumer groups and businesses in the affected areas overwhelmingly support the change.
There is a bill currently on President Ferdinand Marcos Jr.'s desk: Senate Bill (SB) 2888. This bill aims to expand the franchise of Davao Power & Light Co. ( DPLC ) into the territory currently served by the North Davao Electric Cooperative Inc. ( Nordeco ), effectively eliminating the cooperative. This is the second time the franchise expansion has been passed and sent to the President—the first was in 2023.
With SB 2888 addressing the contradiction with the law governing franchises and incorporating the recent Supreme Court ruling against the exclusivity of franchises, President Marcos should sign the measure. I previously wrote extensively on this topic in September 2023 when President Marcos vetoed the first bill. The rejection was not due to a preference for expensive and substandard electric service but stemmed from a valid concern that the initial act might violate the Non-Impairment Clause in the Constitution. The new bill is structured to circumvent this issue, primarily by providing a transition period of up to two years, covering the time Nordeco's original franchise would have expired. Furthermore, the Supreme Court ruling on July 30, 2024, in a similar case involving the Iloilo Electric Cooperative and MORE Power, which stated that franchises do not grant exclusive rights within the franchise area, removes any remaining obstacles for Marcos to sign the bill.Naturally, Nordeco and its supporters, mainly represented by the Philippine Rural Electric Cooperatives Association (Philreca), are vehemently opposed to this development. They have launched a fierce campaign, primarily on social media, to prevent its implementation. Philreca's Facebook post on January 30, 2024, opposing SB 2888 exemplifies the rhetoric used for over a year. It accuses the bill's proponents of employing inaccurate data to support their case for replacing Nordeco and characterizes the expansion of DPLC, part of the Aboitiz family of companies, as aggressively profit-driven 'over the needs of Filipino consumers.' Conversely, the takeover by DPLC has garnered overwhelming support from consumers and businesses who have endured high electricity rates and unreliable service, which has even garnered national news attention. A statement compiled by the Davao Consumer Movement and endorsed by a dozen chambers of commerce and business associations in the affected area—Tagum City, Samal Island, Mabini in Davao de Oro, and the points in between—posted on Facebook the day after Philreca's statement, labels Nordeco as 'an inefficient, corrupt and expensive electric cooperative which has become a burden to consumers.
PHILIPPINES PRESIDENT MARCOS DPLC NORDECO ELECTRIC COOPERATIVE FRANCHISE EXPANSION ENERGY POLICY
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