Tourists Flee as Samal Plunges Into Darkness

December 5, 2025
Balitang Mindanao
Public Policy
0

Tourism on Samal Island in Davao del Norte is in full swing.

According to the Island Garden City of Samal-City Investment and Tourism office (CITO), the island logged 276,554 domestic visitors from January to August, up from 166,152 in the same period last year. Records also indicated a sharp rise in foreign visitors, increasing to 7,774 from 4,159 a year earlier.

However, CITO senior tourism operations officer Hazel Rose said recurring power outages have led resort guests to cancel bookings. “If we will have a stable power supply, I’m sure the tourist arrivals will increase,” she stated.

Meanwhile, Samal Mayor Lemuel Reyes stated that the city expects even stronger tourist traffic next year, noting that Samal logged about two million arrivals in 2024 and could see that figure double by 2026 once its power problems are resolved.

“Electricity is really our problem here. [Energy] goes hand-in-hand with water,” he lamented. “Because if there’s no electricity, we don’t have water too. There are days when we experience brownouts.”

The301.3-square-kilometer island struggles with frequent power outages under the Northern Davao Electric Cooperative (Nordeco). Residents and officials say unreliable electricity and high rates hinder tourism and business investment.

Reyes explained that Samal’s power supply depends largely oneight generator sets (gensets), but frequent malfunctions often leave only four running, resulting in daily outages of 30 to 50 minutes for residents and visitors.

The gensets run on diesel, with diesel-generated electricity costing approximately ₱30 per kilowatt-hour (kWh) on average.

He also pointed out that the generator sets powering Samal are neither environmentally friendly nor fully reliable. While the city has invested in additional water infrastructure, the pumping stations still depend on steady electricity.

“The problem is, when we have more guests, they don’t stay for more than one or three days,” added Reyes. “It’s a big loss for our tourism sector. For example, [some people] book a place for three days. But after one day, they leave because the electricity is not good.”

(Also read: An Industry-First 49 MW Energy Storage Solution in Davao)

Samal’s economy is in peril

With expansion on the horizon, Reyes is pushing to attract more investors as hotels, resorts, and hospitals eye the island. The city hall has reduced its reliance on Nordeco by using 400 kW of solar power during the day. Despite these efforts, unreliable electricity still discourages many potential projects.

“There are a lot of investors who signified their intent to invest here – like hospitals and other businesses,” Reyes stated. “However, due to the prevailing power problem, they chose to back out.”

He recalled an investor who pulled out of plans to build a hospital, citing the need for reliable electricity to run medical equipment.

Additionally, the Mindanao Times highlighted small businesses struggling with Samal Island’s frequent brownouts. One of these is Babox Island Hotel, where cashier Shiela Gantalaore recalled nights when guests sweltered in the dark while the generator powered only 10 of 32 air-conditioned rooms. Peak outages brought multiple zero-occupancy days each month. Costs piled up from diesel use and damaged appliances, including more than five broken air conditioners.

Meanwhile, Banggat Randie, a helper at a sari-sari store in Barangay Villarica, Babak District,said each power outage is a gamble, especially for ice cream and frozen goods that spoil without electricity. On top of that, high electricity rates weigh heavily: in October 2025, the store’s bill reached ₱14,000, while his family of four faced ₱1,500, forcing sacrifices and constant worry about stretching their income.

For a self-service carwash shop in Barangay Miranda, customers pay ₱5 for six minutes of water, but when electricity cuts out, machines stop, queues build, and revenue disappears. Seventeen-year-old James Aredidon, who helps run the shop, said each nozzle serves about 10 customers per hour , making losses during three-hour brownouts significant. High energy bills, once ₱5,000 to ₱7,000 monthly, forced the owner to reduce operating hours, cutting costs but limiting service.

The Samal Island Food Establishment Association (SIFEA)highlighted these challenges, stressing that reliable electricity is crucial for both tourism and food safety and supporting a “more capable distributor” for the island.

Nordeco’s unreliable service has hit Samal’s resorts and local businesses hardest, reportedly causing annual losses of ₱120 to ₱150 million, including about ₱50 million from the tourism sector alone.

(Also read: Voices Rising: Consumers Unite Against Failing Electric Cooperatives)

Nordeco faces growing criticism

In November, the Independent Electricity Market Operator of the Philippines (IEMOP) barred Nordeco from the Wholesale Electricity Spot Market (WESM) after it reportedly failed to pay a ₱318.4 million power debt. The suspension, which began September 25, 2025, willremain until Nordeco settles its arrears and receives official notice lifting the ban.

IEMOP cited the cooperative’s repeated noncompliance with WESM rules and stressed that participation requires strict adherence to market regulations and financial accountability. “Nordeco’s suspension highlights the consequences of non-settlement and reinforces the importance of transparency in the power sector,” stated IEMOP.

With nearly half of Nordeco’s power sourced from WESM as of July 2025, consumer groups and local businesses warned that the suspension could further strain the region’s electricity supply. Relying only on bilateral agreements, the cooperative may trigger rotational brownouts, higher costs, and reduced reliability for homes and businesses.

Years of poor service, high rates, and chronic inefficiency led to Nordeco’s suspension, with congressional data showing its customers pay ₱3 to ₱5 more per kWh than Davao Light users while enduring roughly four hours of outages monthly, compared with just 17 minutes for Davao Light.

In response, several local governments in 2024 pushed to revoke Nordeco’s franchise, culminating in theenactment of Republic Act 12144 in April 2025. The law extended Davao Light’s service to about 80,000 consumers in Davao del Norte and Davao de Oro, including Tagum, Samal, Kapalong, and parts of Compostela, Laak, and Maco.

Implementation faces uncertainty, however, as Nordeco has challenged the law in the Supreme Court, which has yet to issue a ruling.

Long-awaited power utility shift nears

Recently, the Davao Consumer Movement (DCM) welcomed steps toward long-awaited electricity reforms in Davao del Norte and Davao de Oro. The group highlighted the November 24, 2025, Energy Regulatory Commission (ERC) hearing on the Certificate of Public Convenience and Necessity (CPCN) as a key move, which, if granted, would allow Davao Light to expand into areas previously served by Nordeco.

Still, the group expressed disappointment over the ERC’s decision to push the second CPCN hearing to January 13, 2026, instead of holding it in December. The group said even a short delay prolongs the hardships of residents still waiting for more reliable electricity.

“We understand the realities of bureaucracy, but such postponements hinder true progress,” the group asserted.

Manila Standard columnist Ray Eñano echoed the call for the ERC to swiftly address Davao’s energy woes by granting the CPCN to Davao Light. “Insufficient power supply across the Philippines and the high cost of acquiring electricity are critical issues that prevent the country from achieving an inclusive economy,” he wrote.

On the day of the ERC hearing, the Davao del Norte Sangguniang Panlalawigan Committee of the Whole approved a resolution opposing Nordeco’s franchise renewal. Authored by Board Member Al David Uy, the measure cited growing public dissatisfaction ,especially from Samal residents, and now moves to the full provincial board for deliberation.

DCM also welcomed Resolutions 1181 and 1182, backing the RA 12144 power transition. Resolution 1181 urges a smooth, uninterrupted shift of electricity services in Davao del Norte, while Resolution 1182 highlights Nordeco’s reliability issues and high rates,urging Congress to consider these concerns in the cooperative’s franchise renewal.

Meanwhile, Mayor Reyes remains optimistic that Samal Island’s power situation will improve next year with plans to transition from the electric cooperative to Davao Light. The shift would reduce dependence on unstable generator sets and pave the way for submarine cable connections. He warned that continued reliance on gensets keeps electricity costs high, with residents currently paying an average of over ₱10 per kWh.

Davao Light announced that, pending the issuance of the CPCN, Samal Island is scheduled for full energization by May 2026.

For Randie, the prospect of change comes as a relief. He revealed that he had to take out a ₱50,000 loan just to cover the steep costs of applying for an electricity connection. “If Davao Light will take over, I think most of us will transfer,” he said. “I will even apply for another loan if necessary because the rates are cheaper, and I think even the installation fee is more affordable.”

Sharing the same dilemma, Gantalao remembered long nights fanning her four-year-old to sleep in the stifling heat, sometimes until dawn. “We are happy to hear about Davao Light coming in because we only heard good things about how they are providing service to Davao City,” she shared.

Life on Samal Island is held back by unreliable electricity, keeping residents and businesses from reaching their full potential. Daily interruptions stall shops, spoil goods, and disrupt homes, while children struggle to study and workers lose precious hours. Economic growth depends on a dependable power supply, and the island’s people deserve a real shot at progress. Stable electricity is more than a convenience—it’s the foundation for opportunity, prosperity, and a brighter future for the entire community.

Sources:

https://www.sunstar.com.ph/davao/samal-logs-over-276k-tourist-arrivals-in-jan-aug-2025

https://mb.com.ph/2025/10/13/brownouts-chase-tourists-away-from-samal-island

https://www.mindanaotimes.com.ph/in-the-dark-samals-small-businesses-struggle-under-the-weight-of-power-woes

https://www.sunstar.com.ph/davao/nordeco-suspended-from-wesm