The Northern Davao Electric Cooperative (NORDECO) has made a plea to President Ferdinand R. Marcos Jr. to reject a bill that would allow Davao Light and Power Co., Inc. (DLPC) to extend its services into regions currently managed by NORDECO. The Senate has recently passed the bill on its final reading, which would permit DLPC to operate in parts of Davao del Norte and all of Davao de Oro.
Elvera Alngog, the acting general manager of NORDECO, expressed concerns in a letter to the Philippine News Agency about the bill, identified as House Bill 11072/Senate Bill 2888. She argued that it shares the same legal and constitutional flaws as House Bill 10554, which President Marcos vetoed in 2022 for attempting to expand DLPC’s franchise in Davao del Norte.
Alngog pointed out that the new bill infringes on the Non-Impairment of Contracts clause in the 1987 Constitution, as NORDECO’s franchises are valid until 2028 for the mainland and 2033 for the Island Garden City of Samal. She warned that the bill would enable DLPC to infringe on NORDECO’s service area prematurely.
Furthermore, NORDECO claims that the bill violates Section 27 of the Electric Power Industry Reform Act (EPIRA), which safeguards electric cooperatives’ franchises until their full term. Alngog cautioned that allowing DLPC to take over could establish a harmful precedent and jeopardize rural electrification initiatives.
The cooperative also raised concerns about the potential adverse economic and social impacts, including risks to the Sitio Electrification Program and the possible job loss for around 800 NORDECO employees.
Alngog urged the President to veto House Bill 11072, similar to his action on House Bill 10554.
On the other hand, the Davao Consumer Movement supports the bill, arguing it would provide more options for power consumers in the two provinces and enhance opportunities for businesses and investors. They believe that with a more efficient power distributor like Davao Light, residents would benefit from affordable and reliable electricity. The group also mentioned that power rates would likely be lower than those currently offered by NORDECO, and that qualified NORDECO employees would be integrated into Davao Light.