1 week Ago By David Ezra M. Francisquete
THE Northern Davao Electric Cooperative Inc. (Nordeco) reiterated its commitment to continue operations and defend its existing franchises even as House Bill 11072 and Senate Bill 2888 lapsed into law on April 6, 2025, and now become Republic Act (RA) 12144. Nordeco, in a statement posted on its Facebook page, interpreted the President's inaction as a reinforcement of his earlier veto on a similar measure, House Bill 10554, which he had described as constitutionally flawed for violating Section 27 (1) of Republic Act No.
9136, or the Electric Power Industry Reform Act (Epira). House Bill 11072 and Senate Bill 2888 lapsed into law as President Ferdinand Marcos Jr. did not act on it.
According to the Constitution, a bill becomes law after 30 days of the President’s inaction on it. Nordeco Acting General Manager Elvera S. Alngog said the law's passage does not negate the cooperative’s legal position.
She said the bill undermines Nordeco’s right to operate within the full term of its franchises. “We have consistently presented evidence pointing to its serious flaws — legal and constitutional — and this is exactly what we intend to demonstrate before the courts of law. We remain firm in our commitment to retain Nordeco’s franchises under the stewardship of the Member-Consumer-Owners (MCOs).
You can expect us to be even more resolute in asserting the legal grounds that prove House Bill 11072 to be unconstitutional. Above all, we entrust everything to God, whose heart is always for the poor and the oppressed,” Alngog said. The cooperative also clarified despite the recent developments, they assured the general public, particularly its consumers in both Davao del Norte and Davao de Oro, that they will still continue their operations as the law will only take effect 15 days after its publication in the Official Gazette or a newspaper of general circulation.
On April 10, Nordeco expressed serious concern over the recent enactment of the law “that alters existing franchise territories, an action that occurred without the President’s signature and, more critically, without proper legal due process.” The cooperative argues that the law, which modifies franchise boundaries, potentially violates constitutional protections, particularly the Supreme Court’s recognition of electric franchises as property rights protected under the due process clause. “Nordeco strongly opposes this law and 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,” a portion of the statement said.
“We emphasize that the alteration of franchise territories through legislative fiat, without proper consultation with affected stakeholders and in disregard of regulatory due process, sets a dangerous precedent that undermines both the legal framework governing electric cooperatives and the rights of the communities they serve.” Nordeco also called on its MCOs to remain calm and steadfast, encouraging continued support and trust in the cooperative. Earlier this week, the Davao Consumer Movement (DCM) expressed its support for the expansion of Davao Light and Power Company's (Davao Light) franchise area to include areas previously served by Nordeco.
The legislation was approved on the third and final reading in the House of Representatives on December 10, 2024, and was passed by the Senate on February 4, 2025. DCM, one of the largest consumer advocacy groups in the region, stated that such measures would further develop economic growth in all areas currently served by Nordeco. These areas include Tagum City, the Island Garden City of Samal (Igacos), and the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in Davao del Norte, as well as Laak, Mabini, Maco, Maragusan, Mawab, Monkayo, Montevista, Nabunturan, New Bataan, and Pantukan in Davao de Oro.
Meanwhile, Ilaw, a non-profit organization that aims to educate consumers on their rights to a just, fair, and affordable power rate, welcomes the enactment of Republic Act 12144. “This is a vital and long-overdue step toward addressing the persistent power issues that have disrupted business operations and the lives of residents in these areas, particularly in the Island Garden City of Samal (Igacos),” its statement read. DEF.
