PRESIDENT Marcos has vetoed a proposed law seeking to expand the franchise area of the Davao Light and Power Company (DLPC) in Davao del Norte because it infringes on an area already covered by another electric cooperative.
“The President vetoed the bill proposing to expand the franchise of the Davao Light and Power Company due to, among others, its susceptibility to infringe on the franchise coverage area of the North Davao Electric Cooperative,” Press Secretary Trixie Cruz-Angeles said in a statement.
Sen. Grace Poe said she respects the decision of Marcos but stressed it is the people of Davao who will be at the losing end.
“It is the people of Davao themselves who clamored for a new power provider as they have been held hostage by onerous power supply agreements entered into with less than due diligence. The grant would have rolled out cheaper and better electricity services that can spur much needed growth in the region. The interest of consumers comes first,” Poe said.
In the veto messages sent by the President to the Senate, he said he is returning enrolled House Bill (HB) 10554 without his signature because of the “susceptibility” of the proposed expansion and its “apparent overlap and possible infringement into the subsisting franchise, permits, and contracts previously granted to the North Davao Electric Cooperative.”
He said the franchise of North Davao Electric Cooperative is until 2033 and signing HB 10554 would go against Republic Act No. 9136 that allows all franchises to be full terms.
He said HB 10554, which expands the franchise area of the Aboitiz Power firm DLPC, will be a collateral attack against North Davao Electric Cooperative
DLPC only currently covers Davao City and Panabo City, Carmen, Dujali, and Sto. Tomas in Davao del Norte. It seeks to cover Tagum City, the Island Garden City of Samal (Igacos), Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in Davao del Norte, which are all covered by the Northern Davao Electric Cooperative (Nordeco).
Marcos said that while the proposed law aims to ensure the continuous and uninterrupted supply of electricity in the said areas, he is “constrained to veto the bill.”
He added that, despite his decision, he remains committed to the total electrification of the country “in a vigorous and systematic manner, with utmost respect for the concomitant rights of the public service entities engaged in supplying electric service, as well as the consumers thereof.”
Poe said Congress made sure the franchise expansion would not violate any existing laws, including the Electric Power Industry Reform Act, since the Constitution allows franchise expansion as it falls squarely under the “amendment, alteration or repeal by Congress when the common good requires.”
She said there is also no violation of the non-impairment clause of the Constitution as this does not apply to franchises. It is settled that police power subordinates the non-impairment clause in the “interest of public health, safety, morals and general welfare.”
As the Constitution allows, the franchise expansion falls squarely under the “amendment, alteration or repeal by Congress when the common good requires.” — with Raymond Africa
