PUWERSA ng Bayaning Atleta (PBA) Partylist Representative Margarita “Migs” Nograles has raised the urgency for the swift approval of proposals to expand the franchise area of Davao Light and Power Company (DLPC) to eight areas in Davao del Norte and Davao de Oro to finally solve the energy woes that have disrupted the livelihood and the well-being of its residents.
Nograles expressed confidence that the expansion of DLPC’s franchise would receive the endorsement of President Marcos, even in light of a prior veto on a similar measure as this would allegedly overlap and infringe on the existing franchise of the Northern Davao Electric Cooperative (NORDECO). She emphasized that the new measure has clearly laid down the overarching need to uphold the common good and protect the best interest of the people by ensuring improved energy access for more communities and fostering economic growth.
Nograles raised the urgency to approve DLPC’s bid to cover at least eight areas in the northern Davao region as she pointed out that NORDECO has been non-compliant with the terms of their franchise as mandated by the Electric Power Industry Reform Act (EPIRA) resulting in high electricity cost and constant power interruption that is making life very difficult to many of their clients.
These eight areas include 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 municipality of Maco in Davao de Oro.
According to Nograles, the proposed expansion of the DLPC franchise should not be regarded as an impairment of NORDECO’s franchise which mandates the allowance of existing franchises to run their full term. Nograles pointed out that the Constitution has provided Congress the power to grant, amend or alter existing franchises in order to protect public interest and promote common good.
“Hindi po ako galit sa Nordeco o sa mga cooperatives , Mandato lang po talaga ng Kongreso, trabaho po talaga naming na kapag may prangkisa, we can also amend or alter especially if the common good so requires,” Nograles said during last week’s hearing by the House Committee on Franchise which tackled various bills pushing for the expansion of the DLPC franchise area including Nograles’ House Bill 6740.
Nograles, who is also a lawyer, stressed that while the Philippine Constitution ensures that laws passed should not impair the obligation of contracts, it also outlines the conditions for granting public utility franchises and authorizations.
Nograles said the key principle of granting a legislative franchise is the promotion of the common good, allowing for amendments, alterations, or repeal by Congress as required.
Drawing from legal precedents, Nograles cited the case of Philippine American Life Insurance Co. v. Auditor General, highlighting how the state’s police power can sometimes outweigh the absolute freedom of contract. This case illustrates that economic policies for public welfare can justify regulatory measures, even if they affect contracts.
Nograles also emphasized that, unlike the previous measure that was vetoed by the President, her HB 6740 includes a transitionary clause and a carve-out clause that will ensure that the areas left behind under NORDECO’s jurisdiction will not result in higher power prices.
Nograles expressed confidence that because of the urgency of the situation in Davao del Norte, the President would support new measures to expand the franchise DLPC as she noted the importance of striking a balance between the interests of the state and the protection of contractual rights.
