NORDECO Opposes RA 12144, Citing Threats to Franchise and Consumer Rights

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The Northern Davao Electric Cooperative, Inc. (NORDECO) has issued a strong statement opposing Republic Act No. 12144, which lapsed into law on April 6, 2025, after it was not signed by the President within the 30-day period mandated by the 1987 Philippine Constitution.

The law seeks to transfer Tagum City, the Island Garden City of Samal, and several municipalities in Davao del Norte and Davao de Oro into the franchise area of Davao Light and Power Company, Inc. (DLPC), a move NORDECO claims undermines its legal rights and the welfare of its member-consumer-owners.

In its official statement, NORDECO highlighted significant legal concerns surrounding RA 12144. The cooperative pointed out that the law potentially violates established franchise boundaries as determined by Supreme Court rulings.

NORDECO added the law contradicts with its contractual obligations under Presidential Decree No. 269, the Electric Power Industry Reform Act (EPIRA), and Republic Act No. 10531, also known as the National Electrification Administration (NEA) Reform Act. “This law sets a dangerous precedent that undermines the governing electric cooperative and the communities they serve,” NORDECO stated.

NORDECO, which has served the region for decades, emphasized its commitment to the rural electrification program and the integrity of its franchise territories. The cooperative expressed frustration over the lack of consultation with stakeholders, arguing that the law disregards the rights of its member-consumer-owners. “We urge our member-consumer-owners to keep calm, continue your support and patronage to the cooperative as this will come to pass,” the statement read, underscoring NORDECO’s resolve to protect its franchise “even an inch.”

Meanwhile, in an earlier statement, ILAW Pilipinas said the passage of Republic Act 12144 is crucial to addressing the perennial problem of power outages in the affected areas, particularly in the Island Garden City of Samal (IGACOS), which have greatly affected not only residents but business owners as well.

“Through our focus group discussion (FGD), ILAW heard firsthand the plight of affected business owners in ICAGOS over the severe economic impact of unstable electricity supply and unreliable service that left them with thousands of pesos in daily revenue losses and missed livelihood opportunities for workers due to frequent and prolonged power interruptions, “ ILAW said in a statement.

“We call on the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) 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,” it added.

Under the new law, Davao Light’s franchise now includes: Tagum City, Island Garden City of Samal, Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in Davao del Norte; and
Compostela, Laak, Mabini, Maco, Maragusan, Mawab, Monkayo, Montevista, Nabunturan, New Bataan, and Pantukan in Davao de Oro.

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