By Catherine S. Valente
(UPDATES) PRESIDENT Ferdinand "Bongbong" Marcos Jr. has vetoed a measure seeking to expand the franchise area of the Davao Light and Power Company Inc., Malacañang said on Thursday.
Press Secretary Rose Beatrix "Trixie" Cruz-Angeles said the President vetoed the bill "due to, among others, its susceptibility to infringe on the franchise coverage area of the North Davao Electric Cooperative."
"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 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.," Marcos said in his letter to Congress.
The President explained that North Davao Electric Cooperative Inc. has existing franchises in the expanded franchise area that will subsist until 2028 and until 2033.
"The bill runs counter to the provisions of Section 27 of Republic Act 9136, or the Epira (Electric Power Industry Reform Act) mandating that 'all existing franchises shall be allowed to their full term,'" he said.
Marcos also said "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.' In view of these considerations, I am constrained to veto the above-mentioned enrolled bill," he added.
Still, Marcos said he remains committed to 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."
House Bill 10554 sought to amend Republic Act 11515, extending for another 25 years the franchise granted to Davao Light and Power Company Inc.
It would have placed Tagum City, Island Garden City of Samal and the municipalities of Asuncion, Kapalong, New Corella, San Isidro and Talaingod under the franchise area of Davao Light and Power Company Inc.
These areas are currently serviced by the North Davao Electric Cooperative Inc.
Daao Light and Power Company Inc. currently services Davao City, Panabo City and the municipalities of Carmen, Dujali and Sto. Tomas in Davao del Norte.
