SC: Electric cooperatives have no right to exclusive franchise

Supreme Court News

SC: Electric cooperatives have no right to exclusive franchise
Electric CooperativesExclusive Franchise
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Electric cooperatives do not have a constitutional right to an exclusive franchise within their coverage areas, according to the Supreme Court .In a decision, the Supreme Court En Banc dismissed a petition of the Iloilo Electric Cooperative Inc challenging the validity of Republic Act 11918, which expanded the franchise of More Electric and Power Corporation to areas within ILECO’s supposed exclusive franchise area.

However, the Court said that Section 11, Article XII of the Constitution prohibits exclusive franchises.Further, the Court said that RA 11918 was granted to make electricity more affordable for citizens in Iloilo. Congress found that expanding MORE’s franchise would offer lower energy rates as ILECO can easily dictate the price of electricity without competition.

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Electric Cooperatives Exclusive Franchise

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