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Manila Bulletin devider Philippines devider National devider Marcos vetoes bill expanding Davao Light and Power Company franchise area

Marcos vetoes bill expanding Davao Light and Power Company franchise area

Published Jul 28, 2022 05:26 pm

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

Press Secretary Trixie Cruz-Angeles said on Thursday, July 28, that the President vetoed the proposed measure due to various reasons, including 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 veto letter.

The President also said that 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'," Marcos said.

The Chief Executive noted 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 subject to a 'collateral attack'," Marcos further said in his veto message.

While he vetoed the bill, Marcos vowed that he will remain committed in pursuing total electrification of the Philippines which is "vital to the welfare of our people and the sound development of the nation."

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Davao Light and Power Company first 100 days 72822 HOUSE BILL 10554 veto President Marcos
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