Consumers Demand Faster Davao Light Expansion

December 15, 2025
Balitang Mindanao
Public Policy
0

A key step took place on November 24, 2025, when the Energy Regulatory Commission (ERC) held a hearing on the application for a Certificate of Public Convenience and Necessity (CPCN). This permit is essential because it determines whether a power provider is fully qualified to operate in a way that genuinely protects and serves the public’s welfare.

If the CPCN is approved, Davao Light will be cleared to expand its operations into territories previously served by the Northern Davao Electric Cooperative (Nordeco). This expansion is anchored on Republic Act 12144, which authorizes the company to extend its franchise into several areas currently experiencing long-standing service issues. These include Tagum City, the Island Garden City of Samal, Asuncion, Kapalong, New Corella, Talaingod, and San Isidro in Davao del Norte, as well as the entire province of Davao de Oro.

“For consumers, this means that households and businesses in the expanded franchise area will soon gain access to Davao Light’s services – reliable and affordable electricity, improved customer service, and stronger support for local growth,” Ryan Amper, convenor of the Davao Consumer Movement (DCM), declared.

Amper also noted that the Sangguniang Panlalawigan’s recent actions strengthened the push for a power transition in Davao del Norte. He pointed to two resolutions: one urging an immediate, orderly shift of electrical services under Republic Act 12144, and another expressing dissatisfaction with Nordeco’s unreliable yet costly service. The second resolution also asks Congress to seriously weigh these concerns as it reviews Nordeco’s franchise renewal.

While the Amper welcomed the support of local leaders and business groups who attended the hearing and helped amplify the concerns of consumers long overlooked by Nordeco, he also noted the frustration surrounding the schedule. The next hearing was moved to January 13, 2026, instead of being held within the year.

“While less than two months away, this delay prolongs the hardship of consumers awaiting a change in power service providers,” he stated. “We understand the realities of government bureaucracy, but such postponements hinder true progress.”

(Also read: Counting the Wrong Costs: The Case for Rethinking How We Judge Renewables)

Progress stalls without reliable energy

Earlier this year, major international and local business groups in the Davao Region raised alarms over how poor electricity service was beginning to undermine the area’s economic well-being.

Tony Peralta, chairman of the European Chamber of Commerce of the Philippines-Southern Mindanao Business Council (ECCP-SMBC) ,warned that unreliable electricity could stall business growth and limit expansion. He stressed that consistent power is essential to attract foreign investment and support a sustainable, thriving economy.

“My position has always been that of consistency and the economy of providing electricity to growing communities,” highlighted Peralta. “Electric cooperatives (ECs) have not met their commitments to provide electricity. Business expansion is seriously impaired and compromised. Residential consumers also bear the brunt of inefficient management.”

Peralta added that despite having ample time to improve, Nordeco’s inefficiencies continue to cause missed opportunities, poverty, and lower tax revenues for local governments. He said that when ECs fail to meet this responsibility, businesses hesitate to invest, slowing job creation and local growth. Unreliable and costly power, he concluded, ultimately hampers investment and economic progress.

“The lack of electricity deters business investments and makes business expansion a perennial challenge, highlighting the inability of electricity providers to offer power at a reasonable cost with minimal interruptions,” he asserted.

Meanwhile, Dr. Ronald Suico, president of the Davao City Chamber of Commerce and Industry Inc. (DCCCII), affirmed the chamber’s support for legal decisions,stating that these are especially valuable when promoting economic development.

“From a business perspective, competition is always beneficial; it drives innovation, improves service quality, and leads to better pricing for consumers,” he said. “The introduction of more players in any industry often results in enhanced efficiency and customer satisfaction, which ultimately fuels economic growth.”

For the Island Garden City of Samal, Nordeco’s inconsistent electricity service has taken a heavy toll on resorts and local businesses. Reports indicate that the unreliable power supply has led to annual losses ranging from ₱120 million to ₱150 million, with the tourism sector alone accounting for roughly ₱50 million of the shortfall.

Despite persistent power issues, the Island Garden City of Samal recorded 276,554 domestic visitors from January to August, a significant 66% rise from the same period last year. However, recurring outages have disrupted the tourism sector, with City Investment and Tourism office Senior Tourism Operations officer Hazel Rose noting that guests have cancelled bookings due to unreliable electricity. “If we will have a stable power supply, I’m sure the tourist arrivals will increase,” she said.

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

With Davao Light’s expansion on the horizon, city officials are keen to attract more investors, including hotels, resorts, and hospitals. Reyes highlighted the impact of power issues on investment decisions: “There are a lot of investors who signified their intent to invest here, like hospitals and other businesses. However, due to the prevailing power problem, they chose to back out.”

(Also read: Southeast Asia Races Toward Solar-Wind Integration, Yet Hard Realities Remain)

Key Davao Light upgrades

In July, Davao Light took a major step forward by installing its first electric pole in Tagum City, marking the official launch of its operations in the area. This milestone coincided with the opening of the company’s new 22MVA Digital Substation and modern warehouse facilities, signalling a strengthened infrastructure for electricity distribution.

Davao del Norte Governor Edwin Jubahib welcomed the move, highlighting the potential for Davao Light’s presence to drive economic growth in both Davao del Norte and Davao de Oro. He asserted that dependable electricity is a key factor in attracting investment and supporting local businesses. The governor also pointed out that years of inconsistent power supply under Nordeco had hindered the region’s development, making the arrival of Davao Light a promising change for residents and enterprises alike.

“One thing I can say is that several things will happen once we take over. First, since this is a Davao Light franchise expansion, they (consumers) will automatically benefit from lower (power) rates,” Company president and COO Enriczar Tia explained.

In July, Davao Light billed customers at jus t₱9.20 per kilowatt-hour, significantly lower than Nordeco’s average rate of approximately ₱12 to ₱13 per kWh.

Congressional data also showed that Nordeco customers pay ₱3 to ₱5 more per kWh than Davao Light users and experience aboutfour hours of outages each month, compared with only 17 minutes for Davao Light customers.

Tia noted that, in addition to offering lower rates, Davao Light promises more dependable electricity and faster service to meet consumer needs. In the next five years, the company intends to channel resources intoimproving and modernizing the assets it takes over from Nordeco.

Davao’s power transition on the horizon

Previously, Peralta had projected that Mindanao’s economy would expand by six to seven percent in 2025, outpacing the national GDP growth forecast of five percent. He attributed this growth to a combination of robust tourism, a booming real estate market, and a flourishing ICT sector, particularly business process outsourcing.

However, an inconsistent electricity supply threatens the region’s potential and hinders national economic growth.

Manila Standard’s Ray Eñano voiced frustration over the slow pace of the power transition. “What was supposed to be a swift transition to a stable electricity supply has turned into a tug-of-war, with hapless consumers finding themselves on the receiving end of the impasse,” he wrote.

Still, Mayor Reyes expressed confidence that Samal Island’s electricity service will see significant improvements next year as the transition from Nordeco to Davao Light moves forward. The change is expected to lessen reliance on unstable generator sets and enable connections via submarine cable.

“…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,” Eñano stressed. “Electricity consumers deserve a break.”

DCM echoed the sentiment,saying, “These efforts are ultimately about empowering communities and ensuring that residents finally receive the quality of service they deserve.”

According to Davao Light, once the CPCN is issued, the island is slated to achieve full energization by May 2026.

Sources: