Northern Davao Electric Cooperative Inc. (NORDECO) said over the weekend it will exhaust legal remedies to challenge Republic Act No. 12144, which lapsed into law on April 6, 2025.
RA 12144 is an act which includes Tagum City, the Island Garden City of Samal and the municipalities of Asuncion, Kapalong, New Corella, San Isidro and Talaingod in Davao del Norte and the municipalities of Compostela, Laak, Mabini, Maco, Maragusan, Mawab, Monkayo, Montevista, Nabunturan, New Bataan and Pantukan in Davao de Oro to the franchise area of the Davao Light and Power Co. Inc.
“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,” NORDECO said in a statement.
NORDECO said the law, which grants DLPC, a franchise over the valid and existing franchises of NORDECO, lapsed into law after it was not signed by President Ferdinand Marcos Jr. within the constitutionally prescribed period under Article VI, Section 27(1) of the 1987 Philippine Constitution.
“The enactment of this law by the inaction of the President raises significant legal concerns, particularly regarding potential violations of established franchise boundaries as it has been declared by the Supreme Court that franchises are property rights within the concept of the constitutionally guaranteed due process clause,” it said.
NORDECO said this would affect its contractual obligations in these areas, which were mandated by Presidential Decree No. 269 and reinforced by the Electric Power Industry Reform Act (EPIRA) and Republic Act No. 10531, known as the National Electrification Administration (NEA) Reform Act.
“We urge our member-consumer-owners to keep calm, continue your support and patronage to 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,” it said.
Meanwhile, a non-profit group ILAW welcomed the enactment of Republic Act 12144, calling it “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).”
“We call on the Department of Energy and the Energy Regulatory Commission to ensure a smooth transition and guarantee that the law delivers on its promise of an improved and reliable service for the people of Davao del Norte and Davao de Oro,” the group said.