The Davao Consumer Movement expressed support for the recent focus group discussion (FGD) study by ILAW, which shed light on the struggles faced by business owners in the Island Garden City of Samal (Igacos) because of ongoing power issues.
In a statement, the group pointed out that the study highlights how unreliable electricity makes it hard for businesses on Samal Island to run smoothly, limiting their chances for business growth and increased profits.
The group pointed out key results from the study, which revealed that 74.29 percent of micro, small, and medium-sized enterprises (MSMEs) reported losing between P10,000 to P30,000 in daily revenue, while larger companies are losing around P100,000 daily.
The study also noted that frequent power outages are causing businesses to stop or delay operations, pushing them to cut costs by reducing staff, lowering inventory, or shortening business hours.
Igacos Mayor Al David Uy said the city’s tourism industry loses around P50 million annually due to ongoing power problems.
From their talks with local businesses, the Davao Consumer Movement learned that frequent brownouts have damaged appliances, making it harder for business operations.
They noted that the issue also affects online workers on the island, who have shared their frustration with the unstable power supply.
(Also read: Power Woes in Tourist Spots a Bane for Business — Study)
A bane for business
Ongoing power problems in the Igacos are still heavily affecting local businesses, especially those in tourism and retail.
Ninia Bella, who runs a small pastry and cake shop, shared that frequent brownouts and power fluctuations have damaged her appliances—especially her chiller, which is essential for storing cakes—causing disruptions to her business.
“It really affects the business because our ingredients or products that rely on electricity get damaged. We get worried about which appliances will break next. Even our TV and pet fish have died because of the constant brownouts,” Bella shared with SunStar Davao.
Bella said the damaged refrigeration units forced her to stop taking orders for several months. She installed automatic voltage regulators (AVRs) to protect her remaining equipment but remains concerned about the constant power fluctuations. She stressed that these issues affect not only her business but the entire local economy.
The unstable power supply has become more than just a business problem—it’s now a serious challenge to the overall economic growth of Igacos.
ILAW Youth Convenor Francine Pradez and National Convenor Beng Garcia warned that ongoing power outages and poor service from the Northern Davao Electric Cooperative (Nordeco) could cause significant financial losses for businesses, possibly leading to an economic decline four times worse than the current situation. They added that the impact would go beyond tourism and disrupt daily operations in the region.
“The lack of immediate solutions from Nordeco will have lasting effects on the island and the province, leading to a loss of investor confidence and hampering efforts to create job opportunities and sustain economic growth,” an FGD participant from the tourism industry said.
The reported dissatisfaction with Nordeco’s service is widespread, with FGD participants giving the electric cooperative a low rating of 2.45, showing frustration with its unreliable service. Business owners also criticized Nordeco for its strict payment policies, despite its poor service record.
(Also read: Davao del Norte Governor Urges President to Sign Senate Bill 2888 into Law)
An appeal for approval
“But this is not only the reality of those living on Samal Island. It is also the same for those living in the area served by the Northern Davao Electric Cooperative (Nordeco),” said Ryan Amper, convenor of the Davao Consumer Movement.
“For decades, the electric cooperative has not lived up to its promise to provide reliable and affordable electricity. What they are giving instead is unreliable service and expensive electricity,” Amper continued.
“Thus, the solution to this is a change in the power provider of the people of Davao del Norte and Davao de Oro, which Senate Bill 2888 (House Bill 11072) seeks to address,” Amper said.
The proposed law aims to bring Tagum City, the Island Garden City of Samal, and the towns of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in Davao del Norte, along with Maco in Davao de Oro, under the service area of Davao Light.
“Once signed into law, this will have a long-term positive impact on the people of Davao del Norte and Davao de Oro. In the case of Samal, it will finally be able to reach its potential into becoming a major tourism powerhouse in Mindanao,” the consumer group said.
Sources:
https://www.pna.gov.ph/articles/1227905
https://www.sunstar.com.ph/davao/wegotmail-ilaw-fgd-a-stark-reality-of-samale%C3%B1os
