NORDECO seeks to keep franchise coverage

The Northern Davao Electric Cooperative, Inc. (NORDECO) said it will exhaust all legal remedies to defend its franchise area following the enactment of Republic Act 12144.

The law expands Davao Light and Power Company, Inc.'s (DLPC) franchise area to include Tagum City, the Island Garden City of Samal, and several municipalities in Davao del Norte and Davao de Oro — areas currently served by NORDECO.

“The enactment of this law by the inaction of the President raises significant legal concerns, particularly regarding potential violations of established franchise boundaries,” NOREDECO said in a statement issued over the weekend.

It cited previous Supreme Court rulings affirming that franchise rights are protected under the constitutionally guaranteed due process clause. 

“It further directly affect[s] NORDECO’s contractual obligations in these areas, which were mandated by Presidential Decree 269 and reinforced by the Electric Power Industry Reform Act and Republic Act 10531, known as the National Electrification Administration Reform Act.”

The cooperative warned that altering franchise boundaries through legislation without proper consultation and due process “sets a dangerous precedent that undermines both the legal framework governing electric cooperatives and the rights of the communities they serve.”

“(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,” NORDECO said.

NORDECO also called on stakeholders to remain calm and united. 

“We urge our member-consumer-owners to keep calm and continue your support and patronage of the cooperative as this will come to pass. We can all overcome this challenge as we did in decades.”

“NORDECO stands firm in its position to uphold its valid and existing franchises to protect the interest of the member-consumer-owners it serves. We will not yield even an inch of NORDECO’s franchises,” the statement added.

NORDECO, which serves parts of Davao de Oro and Davao del Norte, was established to provide electricity to both urban centers and remote communities. 

Its franchise area borders the Davao Oriental Electric Cooperative Inc. to the west, Agusan del Sur Electric Cooperative Inc. to the north, and the privately owned DLPC to the east.