Senator Grace Poe with former Senate Pro Tempore Ralph Recto (File photo)
MANILA – Senator Grace Poe respects President Ferdinand Marcos Jr.'s exercise of his veto powers on the expansion of the franchise area of Davao Light and Power Company (DLPC).
Marcos earlier sent a letter to Congress citing the House Bill (HB) 10554's susceptibility to “legal and/or constitutional challenge” due to the apparent overlap with a franchise granted to North Davao Electric Cooperative Inc. (Nordeco).
Poe said the people of Davao clamored for a new power provider after being "held hostage by onerous power supply agreements entered into with less than due diligence."
"The grant would have rolled out cheaper and better electricity services that can spur much-needed growth in the region," she said in a statement.
Stressing that the interest of consumers comes first, Poe said that 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.
As the Constitution allows, the lawmaker said, the franchise expansion falls squarely under the "amendment, alteration or repeal by Congress when the common good requires."
"There is also no violation of the non-impairment clause of the Constitution as this does not apply to franchises. It is settled that police power subordinates the non-impairment clause in the 'interest of public health, safety, morals and general welfare'," Poe added.
Poe said she would wait for action from the House of Representatives on whether it will refile the measure before the Senate can consider it again.
She assured that the Senate Committee on Public Services, which she still chairs this 19th Congress, remains committed to delivering better services in all unserved and underserved areas, with the consumers' highest interest in mind.
After HB 10554 was ratified by the 18th Senate last May 30, Poe thanked her colleagues for supporting the measure, especially then-Senate President Pro Tempore Ralph Recto, her co-author, for defending it.
Recto, citing information from the Committee on Public Services chaired by Poe, said earlier that the overall performance of Nordeco was dismal, given that its systems loss is almost at 19 percent compared to only 5 percent of DLPC.
“That is why there is a clamor among the business community in Davao del Norte, among the representatives, among the local government officials, among all the mayors and the governor, to move their franchise area from Nordeco to DLPC, not to mention that DLPC offers electricity rates at roughly PHP3 cheaper or 25 percent cheaper,” Recto said during the Senate interpolation of the bill.
On the other hand, former Senate Committee on Energy chairperson Sherwin Gatchalian, who abstained during the Senate voting to ratify HB 10554, had reaffirmed his stand that inefficient and non-performing distribution utilities (DUs), whether private or otherwise, should be held to account.
If another DU, he said, can provide better services and rates in areas where DUs have consistently been delivering bad electric service, then these inefficient DUs should give way to efficient DUs.
However, Gatchalian agrees to PBBM's move to veto the measure. "I agree with the veto because prices will go up in Davao de Oro and the stranded contracts will lead to a default," Gatchalian said in a statement.
Gatchalian abstained to vote for the ratification of HB 10554 in the Senate considering that while 98,911 households located in Davao del Norte will experience better services through DLPC, 102,621 households located in Davao de Oro will experience an increase in their electricity rates.
Passed by the House on January 24, HB 10554 was authored by Representatives Franz Alvarez of Palawan, Pantaleon Alvarez of Davao del Norte, Jericho Nograles of PBA party-list, and Xavier Romualdo of Camiguin. (PNA)
