Franchise Renewal Efforts Faced with Resistance by Nordeco
The Northern Davao Electric Cooperative (Nordeco) is facing opposition from consumer advocates as it moves forward with its franchise renewal bid. The standoff centers on legal authority, service performance, and franchise area control.
Nordeco insists its franchise renewal filing is legal under existing laws (RA 6038 and Presidential Decree 269) and that it retains full authority to operate until its franchise expiration dates in 2028 and 2033, pending Supreme Court review of RA 12144 which expands Davao Light’s franchise into parts of Nordeco's coverage area.
Consumer advocates, including the Davao Consumer Movement, oppose the renewal. They argue that Nordeco is ignoring public sentiment and the law's intent because RA 12144 should affect service areas. Critics claim Nordeco is disregarding the will of residents in Davao del Norte, Davao de Oro, and the Island Garden City of Samal.
One of the key issues at hand is the legal validity of Nordeco’s franchise renewal amid overlapping franchise claims due to RA 12144. The Davao Consumer Movement questions why Nordeco pursued upgrades only after RA 12144 became law, citing years of high rates and unreliable supply.
Another issue is the pending Supreme Court review on constitutional questions regarding RA 12144, specifically allegations of contract impairment and deprivation of property without due process, which influence who legally controls the disputed areas.
The Davao Consumer Movement's statement also implies dissatisfaction with Nordeco's service record before RA 12144, suggesting a lack of transparency in Nordeco's actions regarding upgrades and franchise renewal. The opposition accuses Nordeco of ignoring its service record during RA 12144 deliberations.
Nordeco denies claims from the Davao Consumer Movement that its application is unlawful. The cooperative stresses that filing early ensures uninterrupted service to member-consumers and follows the Electric Power Industry Reform Act (Epira) and congressional franchise rules.
The fate of the disputed areas now hinges partly on the pending Supreme Court ruling. Nordeco argues that RA 12144 does not automatically transfer service areas. The broader competition for electric distribution rights in Davao del Norte, Davao de Oro, and the Island Garden City of Samal adds another layer to the ongoing dispute.
The standoff between Nordeco and parts of its customer base is widening, with the cooperative standing on its legal mandate while critics push for a more competitive power distributor and better service responsiveness. The final outcome depends partly on the Supreme Court’s ruling on the franchise conflict.
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