The Davao Consumer Movement (DCM) underscored that the consumers have the right to demand a new power service provider in Davao del Norte following the decision of the Supreme Court En Banc on August 1, 2024, that electric cooperatives “do not have a constitutional right to an exclusive franchise within their coverage areas.”
This Decision, dated July 30, 2024, and penned by Associate Justice Rodil V. Zalameda, was released after the Court “dismissed the petition of Iloilo Electric Cooperative, Inc. I, II, and III (ILECOs) challenging the validity of Republic Act No. (RA) 11918. The law expanded the franchise of another electricity provider, MORE Electric and Power Corporation (MORE), to areas within ILECOs’ franchise.”
In a press statement, the Supreme Court said a franchise, “as a privilege granted by the state, is not the exclusive private property of the franchisee. Thus, it must yield to serve the common good, as determined by Congress.”
“This is a major win for many consumers out there as it removes the notion that once a franchise is given to an electric cooperative, it is theirs forever. For us consumers, this means that we now have the right to demand accountability from our electric consumers if they continue to fail us,” said Ryan Amper, Convenor of DCM, in a statement.
“The decision of the court also means that non-performing electric cooperatives that continue to arrogantly refuse to hear our demands to improve their services can be gotten rid of,” Amper added.
Amper noted that the decision also states that the law allows the entry of another power service provider that would benefit the consumers.
“This means that consumers will no longer have to wait for the non-performing electric cooperative’s franchise to expire. In the case of Davao del Norte, this means that it is now our right as consumers to demand that we get a new power service provider,” Amper said.
The Municipalities of New Corella, Asuncion, Talaingod, Kapalong, and San Isidro, the cities of Tagum and the Island Garden City of Samal (IGACOS), Davao del Norte, and the municipality of Maco, Davao de Oro are being supplied with power by the Northern Davao Electric Cooperative (Nordeco).
DCM has been calling for the urgent need to address the power crisis in Davao del Norte brought about by allegedly inefficient service of Nordeco such as frequent power outages and unreliable electricity supply, which according to the group, not only inconvenienced residents but also hampered local businesses and economic activities.
“In a nutshell, the decision is telling electric cooperatives that they have no exclusive franchise in their given areas and unless they shape up, that franchise area can be taken away from them and given to a more competent service provider,” Amper said.
