Davao Light’s franchise area will expand to Davao del Norte and Davao de Oro
(Courtesy of Davao Light and Power Co.’s official FB)
The Senate has passed Senate Bill No. 2888 on its third and final reading, allowing Davao Light and Power Company (DLPC) to expand its franchise. The Davao Consumer Movement (DCM), which advocates for consumer rights in Davao, described it as “another victory for the people of Davao del Norte and, now, including Davao de Oro.”
Davao Light currently supplies power to Davao City and parts of southern Davao del Norte, including Panabo City and the municipalities of Sto. Tomas, Dujali, and Carmen. Under the new bill, its service area will expand to include Tagum City, the Island Garden City of Samal, and several municipalities in Davao del Norte, as well as all of Davao de Oro. These areas are presently served by North Davao Electric Cooperative (Nordeco).
“We believe that with a more capable power distributor, those living in the areas served by Davao Light will be able to enjoy affordable and reliable power,” DCM stated.
(Also read: House Bill Expanding Davao Light’s Franchise Clears Second Reading)
Complaints About Nordeco
The NGO Partners for Affordable & Reliable Energy (PARE) highlighted Nordeco’s unreliable service, leading to frequent brownouts, high electricity costs, and inefficiency, hampering economic growth and burdening residents.
“NORDECO has repeatedly failed to deliver stable and affordable electricity. Consumer complaints often go unresolved, leaving entire communities powerless and hopeless,” said Nic Satur Jr., chief advocate officer of PARE.
Meanwhile, DCM pointed out that hearings at the House of Representatives and the Senate revealed that Davao Light offers electricity at rates three to five pesos lower than Nordeco while also maintaining lower system losses. As of November 2024, Davao Light’s electricity rate stands at ₱9.20/kWh, lower than Nordeco’s ₱12.50/kWh.
During the Senate Plenary Session on January 20, it was revealed that residents in Nordeco’s franchise area face more frequent power outages, averaging four hours per month, compared to 17 minutes per month for Davao Light customers.
Views from the opposition
Nordeco issued an open letter to President Ferdinand R. Marcos Jr. on January 30 in an effort to block the bill’s passage. The letter argued that “while DLPC is a long-established entity, its business model has historically focused on financially viable areas. It is unlikely that the company would be willing or able to assume the same level of commitment to rural electrification that Nordeco has steadfastly maintained.”
But a quick fact check showed that Davao Light has been providing electricity to remote areas within its service area through the Sitio Electrification Program (SEP) since 2018. By 2022, approximately 99.02% of its target number of sitios had been energized.
Nordeco also raised legal concerns about the bill, particularly regarding the non-impairment of contracts. Nordeco’s franchises are valid until 2028 for the mainland and 2033 for the Island Garden City of Samal.
Another issue brought up by Davao de Oro Rep. Maricar Zamora-Mabanglo was that power rates would rise to ₱21.92/kWh from ₱11.38/kWh once Davao Light expanded its franchise.
However, this assertion was repeatedly debunked at the committee level, during Senate debates, and by government agencies. The Energy Regulatory Commission (ERC) confirmed that the expansion would not necessarily lead to price increases.
The Philippine Rural Electric Cooperatives Association (Philreca) also voiced its opposition, calling the bill a “dangerous precedent” for the industry. The group emphasized, “Electric cooperatives were established with a mission to provide service, not profit. Unlike private for-profit companies, they reinvest revenue into system improvements, expansion, and service reliability.”
(Also read: New CDO lab to drive renewable energy innovation in Mindanao)
Attacks against the bill’s supporters
Consumer and business groups in Davao del Norte and Davao de Oro have urged opponents of the Davao Light expansion bill to stop making unfounded and hostile remarks about its supporters.
DCM Convenor Ryan Amper expressed disappointment in the actions of Nordeco advocates. “Instead of attacking us personally, we hope Nordeco and its supporters will engage us in a fruitful dialogue for the benefit of the consumers,” he said.
DCM acknowledged that there was one final obstacle—the signature of President Ferdinand Marcos. They called on the President to help them “finally secure a brighter future” by signing the bill.
Sources:
https://www.facebook.com/photo/?fbid=1016423790525733&set=a.446974487470669&_rdc=1&_rdr
https://www.facebook.com/story.php?story_fbid=559669147073285&id=100090906142216&rdid=OEmAXjVoSF7t8QMJ
https://web.facebook.com/photo?fbid=1015272793974166&set=a.446974487470669
https://web.facebook.com/photo?fbid=1012838544217591&set=a.446974487470669
https://www.sunstar.com.ph/davao/nordeco-appeals-to-pbbm-prevent-passage-of-bill
https://web.facebook.com/photo?fbid=1015272793974166&set=a.446974487470669
https://mindanaotimes.com.ph/davao-light-assures-consumers-expansion-wont-automatically-hike-electricity-rates/
