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FROM THE MAIL | Nordeco’s filing before Supreme Court: A last ditch effort to extend poor power services in DavNor, DavOro

THE DAVAO Consumer Movement asserts that Republic Act 12144 is constitutionally sound, backed by the intent of the legislators who crafted the Senate Bill 2888 and House Bill 11072, and consistent with the previous ruling of the Supreme Court on electric cooperatives.

Last week, the Northern Davao Electric Cooperative (Nordeco) filed before the Supreme Court a Petition for Certiorari and Prohibition with Prayer for Writ of Preliminary Injunction and Temporary Restraining Order to declare Republic Act 12144 as “unconstitutional.”

Nordeco claims that RA 12144 is unconstitutional because it “is legally flawed as it violates the due process clause of the 1987 Constitution, among other infirmities” and “to defend its existing franchises and the government’s total electrification program by 2028.”

We doubt that the legislative process in crafting RA 12144 did not undergo due process, considering Nordeco has been given the platform to air their side in congressional and senate hearings. Every detail has been scrutinized to allow lawmakers to craft a law that seeks to improve the power situation of Davao del Norte and Davao de Oro.

More importantly, the voice of the people is clear. On social media and on the ground, there is clamor for a shift in the power service in the two provinces. In a survey we commissioned, 97% of respondents in Davao del Norte and 80% in Davao de Oro support the change in power provider in the two provinces. Thus, this alone trumps the need for “due process” as the people have spoken.

We would also like to point out that the Supreme Court themselves have already issued a ruling on electric cooperatives claiming exclusive franchises.

In a decision dated July 30, 2024, Associate Justice Rodil V. Zalameda ruled that Section 11, Article XII of the Constitution prohibits exclusive franchises. As a result, the Court dismissed the petition filed by Iloilo Electric Cooperative, Inc. I, II, and III (ILECOs) challenging the validity of Republic Act No. (RA) 11918.

The Court emphasized that a franchise, granted by the state, is a privilege—not the exclusive private property of the franchisee. Therefore, it must align with the common good, as determined by Congress.

In this case, Congress enacted RA 11918 to make electricity more affordable for the people of Iloilo province. Expanding MORE’s franchise was seen as a way to encourage competition, given MORE’s capacity to offer lower energy rates

Thus, the recent filing of Nordeco at the Supreme Court is a last-ditch effort of self-preservation. Instead of focusing on improving their services and power rates, which they should have done if they did not want to be replaced, they are focusing on rescuing themselves.

Do we want to still be served by Nordeco? If we want more years of unscheduled brownouts, poor customer service, and exorbitant power rates, that would be a yes. However, we want better, affordable, and reliable power service. Thus, our continued call for a change in the power provider of Davao del Norte and Davao de Oro.

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For more details:

Ryan Amper
Convenor
Davao Consumer Movement
0905-5634083

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