Nordeco to challenge Aboitiz’s Davao Light franchise expansion
The Northern Davao Electric Cooperative, Inc. (Nordeco) said it would exhaust all legal options against the enactment of a measure allowing Aboitiz-owned Davao Light and Power Co. to expand its franchise area.
In a statement, the co-op said Republic Act No. 12144 lapsed into law last April 6, reassigning some of its franchise areas to Davao Light, including Tagum City, the Island Garden City of Samal, and several municipalities in Davao del Norte and Davao.
Before this, it said Davao Light has been delivering electricity to Davao City and some parts of Davao del Norte, particularly Carmen, Dujali, and Sto. Tomas.
Nordeco expressed its “strong” opposition against the law, saying it was only established following the “inaction” of President Marcos.
It raised possible legal concerns, citing a previous ruling of the Supreme Court that “franchises are property rights within the concept of the constitutionally guaranteed due process clause.”
“[We] shall pursue all available legal remedies to defend the sanctity of the cooperative’s franchises, the welfare of its Member-Consumer-Owners, and the integrity of the rural electrification program,” it said.
The group said the measure was done “without proper consultation with affected stakeholders and in disregard of regulatory due process…”
“We emphasize that the alteration of franchise territories through legislative fiat … sets a dangerous precedent that undermines both the legal framework governing electric cooperatives and the rights of the communities they serve,” Nordeco added.
It also said it would continue upholding its “valid and existing franchises” to protect the interests of its consumers.
‘Dangerous precedent’
“We will not yield even an inch of Nordeco’s franchises,” the co-op said.
Aboitiz Power did not reply when sought for comment.
Aside from Davao Light, Aboitiz also operates Visayan Electric, which services Cebu City and its neighboring communities; Cotabato Light, powering Cotabato and select areas in Maguindanao; and EnerZone Group for homes and businesses in Subic in Zambales, Lima in Batangas, and Balamban and Mactan in Cebu.
