Marcos vetoes bill expanding franchise area of Davao Light and Power

President Ferdinand "Bongbong" Marcos Jr. has vetoed a proposed measure that seeks to expand the franchise area of the Davao Light and Power Company, Inc.

This was confirmed to reporters by Press Secretary Trixie Cruz-Angeles on Thursday, saying that the bill was vetoed "due to, among others, its susceptibility to infringe on the franchise coverage area of the North Davao Electric Cooperative."

Marcos, in his veto message, said:

"While I recognize the prerogative of the Honorable Members of Congress and the laudable intent of the bill to further improve and develop access to electricity within the captive market of the expanded franchise area, I am constrained to veto the bill due to the susceptibility of the proposed expansion of the franchise area of Davao Light and Power Company, Inc., to legal and/or to constitutional challenge due to the apparent overlap and possible infringement into the subsisting franchise, permits, and contracts previously granted to North Davao Electric Cooperative Inc."

According to the President, the North Davao Electric Cooperative Inc. has existing franchises in the expanded franchise area which will subsist until 2028 and until 2033.

"The bill runs counter to the provisions of Section 27 of Republic Act No. 9136 or the EPIRA, mandating that all existing franchises shall be allowed to their full term," he said.

The veto message further says that "the bill, while on its face amends the franchise of another entity over the expanded area, is a prohibited collateral attack on North Davao Electric Cooperative Inc. franchise.

"This is contrary to a jurisprudentially settled doctrine that a franchise cannot be subjected to a 'collateral attack.'"

Still, Marcos said he remains committed for the total electrification of the Philippines "with utmost respect for the concomitant rights of the public service entities engaged in supplying electric service, as well as the consumers thereof." 

Cheaper, better services

Senator Grace Poe, chairperson of the Senate Committee on Public Services, said she respects Marcos' decision to veto the proposed legislation.

However, she said "the grant would have rolled out cheaper and better electricity services that can spur much needed growth in the region."

"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," Poe said in a statement.

"Congress made sure in the measure that the franchise expansion would not be violative of existing laws including the Electric Power Industry Reform Act and any constitutional or case law," she added.

Poe also said the "proposed expansion of DLPC’s franchise area is not a collateral attack but is actually a response to the appeal of NORDECO’s customers for better power service."

"The argument of 'collateral attack' on franchises may only apply in court or administrative proceedings where parties may otherwise attempt to strike down a law that is legally presumed to be valid. This does not apply in the exercise of legislative functions by Congress especially in the context of Section 11, Article XII of the Constitution," she explained.

The senator said they would wait for the action of the House of Representatives as to whether they will refile the measure before the Senate could consider it anew.— BM, GMA News