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Line-men work on powerlines in Batangas on January 27, 2020. Jonathan Cellona, ABS-CBN News/File

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Power

Adrian Ayalin

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:950px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/17225705362418-2-2024 12-05-29 PM.png" style="width:950px" class="fr-fic fr-dib" alt="Line-men work on powerlines in Batangas on January 27, 2020. Jonathan Cellona, ABS-CBN News/File"/><span class="fr-inner" style="text-align:left"></span></span></span></div><p style="text-align:left">Line-men work on powerlines in Batangas on January 27, 2020. <em>Jonathan Cellona, ABS-CBN News/File</em></p><div></div><div style="text-align:left"><br/></div><div><br/></div><div><br/></div><p>MANILA — The Supreme Court (SC) stressed that electric cooperatives do not have the Constitutional right to an exclusive franchise within their coverage areas as it denied the petition of Iloilo Electric Cooperative, Inc.<span id="isPasted" style="color:rgb(65, 65, 65);letter-spacing:normal;orphans:2;text-align:left;text-indent:0px;text-transform:none;white-space:normal;widows:2;word-spacing:0px;-webkit-text-stroke-width:0px;background-color:rgb(255, 255, 255);text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial;display:inline !important;float:none"> (ILECO)</span> I, II and III.</p><div><a href="https://news.abs-cbn.com/business/2024/5/15/bill-shock-coming-electric-coops-in-visayas-hike-rates-in-may-1519">• Bill shock coming? Electric coops in Visayas hike rates in May</a></div><p>In a decision of the en banc dated July 30, 2024, the court dismissed the petition for certiorari and prohibition filed by ILECOs which challenged the validity of Republic Act No. 11918, the law which expanded the franchise of MORE Electric and Power Corporation to areas within ILECOs’ franchise area.</p><div><a href="https://news.abs-cbn.com/business/2024/6/12/erc-says-no-basis-to-compel-electric-coops-to-defer-increase-1433">• ERC says no basis to compel electric coops to defer increase</a> </div><p>In denying the petition, the court ruled that Section 11, Article XII of the Constitution prohibits exclusive franchises. </p><p>“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,” the SC said a statement about the decision pennedy by Associate Justice Rodil Zalameda.</p><div><a href="https://news.abs-cbn.com/business/2024/5/15/electric-cooperatives-sa-visayas-luzon-nagpatupad-ng-dagdag-singil-1842">• Electric cooperatives sa Visayas, Luzon nagpatupad ng dagdag-singil</a> </div><p>The court also stressed that allowing the entry of another player benefits consumers who no longer have to wait until the expiry of ILECOs franchises in 2029, 2039 and 2053, in accordance with the Electric Power Industry Reform Act which encourages competition in the industry. </p><p>“Without competition, ILECOs can easily dictate the price of electricity,” the SC said.</p><div><a href="https://news.abs-cbn.com/business/2024/7/22/marcos-eyes-review-of-epira-to-bring-down-power-costs-1622">• Marcos eyes review of EPIRA to bring down power costs</a></div><p>During his last State of the Nation Address, President Ferdinand Marcos, Jr. sought to bring down power costs and ordered the review of the Electric Power Industry Reform Act.</p><div><br/></div><div><strong>RELATED VIDEO<br/></strong></div><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/oHGDnSzrJvw?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><div><br/></div>

<p>In denying ILECO's petition, the court ruled that Section 11, Article XII of the Constitution prohibits exclusive franchises.</p>

In denying ILECO's petition, the court ruled that Section 11, Article XII of the Constitution prohibits exclusive franchises.

SC says electric coops don't have right to 'exclusive franchise'

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SC says electric coops don't have right to 'exclusive franchise'

Adrian Ayalin,

ABS-CBN News

Published August 02, 2024 12:21 PM PHT

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