We respect the President’s exercise of his veto powers on the expansion of the franchise area of Davao Light and Power Company (DLPC).
It is the people of Davao themselves who clamored for a new power provider as they have been 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.
The interest of consumers comes first.
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 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.”
The proposed expansion of DLPC’s franchise area is not a collateral attack but is actually a response to the appeal of Nordeco (North Davao Electric Cooperative) customers for better power service. The argument of “collateral attack” on franchises may only apply in court or administrative proceedings where parties may otherwise attempt to strike down a law that is legally presumed to be valid. This does not apply in the exercise of legislative functions by Congress especially in the context of Section 11, Article XII of the Constitution.
We will await action from the House of Representatives as to whether they will refile the measure before the Senate can consider it again.
The Senate committee on public services remains committed to the delivery of better services in all unserved and underserved areas, with the consumers’ highest interest in mind.
