Various electric cooperatives (ECs) across the country have strongly opposed the proposed expansion of Davao Light and Power Company, Inc.'s (DLPC) service areas under House Bill No. 11072 (HB 11072), which is now awaiting the approval of President Ferdinand "Bongbong" Marcos Jr.

HB 11072 seeks to extend DLPC's franchise to include Tagum City, the Island Garden City of Samal, and the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in Davao del Norte, as well as the municipality of Maco.

The bill also amends Republic Act No. 11515, which extended DLPC's franchise for 25 years, and attempts to transfer service areas from Northern Davao Electric Cooperative, Inc. (NORDECO) to DLPC.

What are ECs?

ECs have been essential in providing electricity to rural and underserved communities in the Philippines.

Established under the National Electrification Administration, these cooperatives aim to offer affordable and reliable power to areas lacking private sector interest.

Despite their critical role, ECs face increasing competition from private firms.

Under HB 11072, NORDECO is at risk of losing control over service areas in Davao, covering 16 municipalities and two cities in Davao de Oro and Davao del Norte.

As of 4 February 2025, both chambers of the legislature have passed the bill.

NORDECO has appealed to President Ferdinand "Bongbong" Marcos Jr. to veto the bill, with acting general manager Elvera Alngog calling it “anti-people.”

Opponents argue that the move is unconstitutional and undermines the cooperatives' mission of providing electricity to rural areas without prioritizing profit.

Opposition to the bill

On Wednesday, 12 March, electric cooperatives (ECs) nationwide voiced their objections.

Among them were the Marinduque Electric Cooperative, Inc., Leyte V Electric Cooperative, Inc., Misamis Occidental, Zamboanga City, and Agusan del Sur, all of which criticized HB 11072 as unconstitutional and a violation of several provisions of the 1987 Constitution.

In a statement, the cooperatives issued an "urgent appeal" to President Marcos, urging him to "defend public interest and veto House Bill No. 11072."

“The stroke of a pen must not sign away consumer welfare, cooperative growth, and rural electrification progress. We [respectfully] but strongly oppose the enrolled House Bill No. 11072, which seeks to expand the franchise of Davao Light and Power Co., Inc. (DLPC) into areas currently served by the Northern Davao Electric Cooperative (NORDECO),” the statement said.

The cooperatives emphasized that the bill revokes NORDECO’s franchise without due process of law and argued that NORDECO's granted franchise should not be nullified in favor of DLPC.

“Clearly, this is a blatant disregard for the cooperative's rights and the rule of law,” their statement added.

They also raised concerns that HB 11072 undervalues NORDECO’s assets, which could place a financial burden on the cooperative and its member-consumer owners.

“This lack of transparency and clarity in the legislative process is unacceptable, as it has failed to prevent 'rider provisions' or unrelated amendments from being inserted into a bill without proper scrutiny,” they said.

Electricity as right, not commodity

In their appeal, the cooperatives urged President Marcos to veto HB 11072 due to its “unjust and unconstitutional profit-driven takeover” of ECs' electricity services.

They warned that the bill could have harmful consequences for the ECs, their MCOs, and the rural electrification program as a whole.

“We believe that this bill will have far-reaching and detrimental consequences for the ECs, their MCOs, and the rural electrification program as a whole,” the statement added.

The cooperatives concluded by reaffirming their support for NORDECO and vowed to take necessary actions to prevent what they view as an anti-consumer and anti-cooperative agenda.

As modernization continues, ECs — dependent on government subsidies and community contributions — face difficulties competing with private companies that have greater access to capital investments.