Ched Rick Gatchalian

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Nordeco seeks SC TRO against "take over" of franchise areas

Paige Javier

ABS-CBN News

MANILA — The Northern Davao Electric Cooperative Inc. (Nordeco) on Friday filed a petition for certiorari and prohibition before the Supreme Court to challenge the passage of a law allowing Davao Light and Power Company, Inc. to expand into and operate in its areas.House Bill No. 11072, which lapsed into law and became Republic Act No. 12144 on April 6, allows Davao Light to &quot;take over&quot; service in the areas under Nordeco, including 10 municipalities in the province of Davao de Oro.Nordeco said the transfer of service areas happened without due process and had not gone through floor debates in Congress, which it said was a &quot;clear abuse&quot; of its power.&quot;By the simple expedience of amendments introduced on the floor of public respondent Senate, on Second Reading, the entire franchise area of petitioner Nordeco was taken away from it and handed to private respondent Davao Light and Power Company, Inc.,&quot; the petition stated.<div><a href="https://www.abs-cbn.com/news/business/2025/5/20/erc-says-looking-into-ways-to-lower-power-rates-in-ph-1854">ERC says looking into ways to lower power rates in PH </a></div><div>NORDECO: NO DUE PROCESS FOR TAKEOVER</div>Nordeco lawyer Ernesto Francisco Jr. said the move was not discussed in House plenary deliberations or committee hearings, violating the cooperative&#x27;s right to due process.&quot;Hindi sila nabigyan ng oportunidad na madepensahan kung bakit tinanggal sa kanila yung prangkisa.... Ang Nordeco, hindi sila nabigyan ng full opportunity to be heard,&quot; he said.(Nordeco was not given the opportunity to defend why they lost the franchise. Nordeco was not given the full opportunity to be heard)He said there was no public consultation with the 10 municipalities that would be affected.&quot;In fact, on record yung vice governor ng Davao de Oro ay tutol siya sa pag-takeover ng Davao Light,&quot; he also said, referring to Vice Governor Tyron Uy.(In fact, the vice governor of Davao de Oro is on record that he opposes the takeover by Davao Light)Nordeco also raised that it was &quot;stripped&quot; of its franchises even without complaints or derogatory reports against it, except the one supposedly lodged before the Energy Regulatory Commission.Francisco said Nordeco was given a two-year &quot;transition period&quot; despite having a franchise valid until 2033.He said the law also states Davao Light can already take over even before the end of the transition period.Respondents in the petition are Executive Secretary Lucas Bersamin, the Senate, the House of Representatives, the National Electrification Administration, the Energy Regulatory Commission, Department of Energy (DOE) and Davao Light.<div>DANGEROUS PRECEDENT FOR COOPS?</div>PHILRECA Party-list Rep. Presley De Jesus joined the filing to express support for Nordeco, saying the takeover would &quot;set a precedent and it is a bad one.&quot;He said that members of the electric cooperative are also owners and the takeover would mean losses for them.Nordeco lawyer Francisco said other local electric cooperative are keeping a close watch on this case out of fear that the same could happen to them.

The Northern Davao Electric Cooperative Inc. (Nordeco) on Friday filed a petition for certiorari and prohibition before the Supreme Court to challenge the passage of a law allowing Davao Light and Company, Inc. to expand into and operate in its areas.

The Northern Davao Electric Cooperative Inc. (Nordeco) on Friday filed a petition for certiorari and prohibition before the Supreme Court to challenge the passage of a law allowing Davao Light and Company, Inc. to expand into and operate in its areas.

Nordeco seeks SC TRO against 'takeover' of franchise areas

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Nordeco seeks SC TRO against 'takeover' of franchise areas

Paige Javier,

ABS-CBN News

Published May 24, 2025 08:38 AM PHT

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