Nordeco goes to Supreme Court to question law allowing DLPC within its franchise areas

MONTEVISTA, Davao de Oro (MindaNews / 13 April) —  The Northern Davao Electric Cooperative (Nordeco) is preparing to challenge before the Supreme Court the newly-enacted law that allows  the Aboitiz-owned Davao Light and Power Company (DLPC) to take over its franchise areas in the provinces of Davao del Norte and Davao de Oro.

During its Employees General Assembly at the cooperative’s gym in Montevista town on Saturday, April 12, around 700 Nordeco employees voiced strong opposition to Republic Act No. 12144, the law that expands DLPC’s franchise area to include the cities of Tagum and Samal, as well as 15 municipalities across the two provinces.

^{NORDECO board of directors secretary Ernido Malone speaks before some 700 electric cooperative workers, officials, and consumer rights support groups during the Employees General Assembly at Nordeco’s gym in Montevista, Davao de Oro. MindaNews photo by CHRIS V. PANGANIBAN}

“We will never surrender!” was the rallying cry of NORDECO workers, officials, and consumer support groups, expressing hope that the Supreme Court would strike down the law, which they allege is unconstitutional.

Nordeco Board Director Felix Sayon compared Davao del Norte Gov. Edwin Jubahib and Rep. Pantaleon Alvarez to the biblical figures Gestas and Barabbas, who were part of the crucifixion of Jesus Christ.

In the Bible, Barabbas, a thief, was spared by Pontius Pilate in exchange for Jesus’ crucifixion, while Gestas, another thief, was crucified alongside Christ. Alvarez is the principal author of DLPC’s franchise expansion, while Jubahib is a staunch supporter of the measure.

Party-list Representative Sergio Dagooc of the Association of Philippine Electric Cooperatives (APEC) addressed the gathering via Zoom, saying he is currently reviewing several flaws in the new law that paved the way for DLPC’s expansion.

Dagooc and fellow power bloc lawmaker, Philreca party-list Rep. Presley De Jesus, emphasized that Nordeco’s existing franchises should be respected and allowed to run their full course.

Nordeco’s mainland franchise remains valid until 2028, while its franchise in the Island Garden City of Samal is set to expire in 2033.

The two lawmakers cited the Non-Impairment Clause under Article III, Section 10 of the 1987 Constitution and Section 27 of the Electric Power Industry Reform Act (EPIRA) or Republic Act No. 9136, which provides that all existing franchises should be allowed to operate for their full term.

In a statement posted Thursday, Nordeco said RA 12144 violates its legally granted franchises, which it argued remain valid under Presidential Decree No. 269, the EPIRA, and the National Electrification Administration (NEA) Reform Act. These laws, according to the cooperative, render the new legislation unconstitutional.

“This is just the beginning of our legal battle, and we will not surrender,” declared acting general manager Elvera Alngog.

Nordeco legal counsel Daniel Campoamor said the High Court would likely invalidate the new law, arguing that lawmakers who supported it lacked understanding of the legal framework governing electric cooperatives.

“There is a strong basis for this law to be struck down, because those who passed it were not competent in the legalities of electric cooperatives,” Campoamor asserted.

He also rejected circulating claims in Tagum City that DLPC would immediately assume control of Nordeco’s operations. He clarified that the cooperative has a two-year grace period and that DLPC must first secure a Certificate of Public Convenience before any transition can occur.

To prevent further confusion, Campoamor said Nordeco’s legal team will file a petition for a Temporary Restraining Order (TRO) before the Supreme Court.

The law took effect by default after President Ferdinand Marcos Jr. allowed the 30-day constitutional period to lapse without signing it.

Ernido Malone, secretary of the Nordeco board, said the President’s inaction was an act of “delicadeza,” noting that his son, Ilocos Norte Rep. Sandro Marcos, was one of the law’s authors.

In 2022, President Marcos vetoed an earlier version of Alvarez’s bill seeking to expand DLPC’s franchise. In his veto message, he warned that while the bill had good intentions, it could face legal and constitutional challenges due to potential overlaps with Nordeco’s valid franchise and contracts.

RA 12144 amends Republic Act No. 11515, which had earlier granted DLPC a 25-year franchise to operate in Davao City, Panabo City, and the municipalities of Carmen, Braulio E. Dujali, and Santo Tomas. Under the new law, DLPC’s expanded coverage now includes: Davao del Norte’s Tagum City, Island Garden City of Samal, Asuncion, Kapalong, New Corella, San Isidro, and Talaingod; and 

Davao de Oro’s Compostela, Laak, Mabini, Maco, Maragusan, Mawab, Monkayo, Montevista, Nabunturan, New Bataan, and Pantukan. 

Before the passage of RA 12144, DLPC provided service to Davao City, Panabo City, and the municipalities of Carmen, Braulio E. Dujali, and Santo Tomas.

Before the law was passed, Enriczar T. Tia, DLPC president and Chief Operations Officer had earlier said they plan to collaborate with Nordeco for a seamless transition if the law is passed. 

Nordeco is an electric cooperative established on September 24, 1971 by RA 6038, to provide “affordable, dependable and round the clock electricity not only in the urban areas but also in far-flung barangays and remote sitios within its coverage area.

According to its website, Nordeco energized 16 towns and two cities in the provinces of Davao del Norte and Davoa de Oro. (Chris V. Panganiban / MindaNews)