A House committee report on the substitute bill that will expand the franchise area of Davao Light and Power Company (DLPC) has been approved. The substitute bill allows the Aboitiz group subsidiary to expand its services to parts of Davao del Norte.
A Welcome Development for Davao del Norte
The Davao Consumer Movement (DCM) has praised this decision of the House of Representatives Committee on Legislative Franchises. In a statement, DCM Convenor Ryan Amper lauded this positive step towards providing better power services in the province. Consumers in several areas of Davao del Norte have been plagued with issues such as high electricity rates, poor services, and damaged appliances caused by frequent blackouts.
DCM is hopeful that the substitute bill will become law, as it follows months of committee hearings and improvements to the legislation. “Definitely, the light is shining brighter at the end of the tunnel. We thank all the lawmakers who took part in the crafting of this bill,” Amper said.
DCM’s statement also noted that representatives from the Northern Davao Electric Cooperative (NORDECO) were unable to present convincing arguments against the bill during the deliberation. DCM slammed NORDECO’s later statements on the matter.
Overcoming Hurdles
Philippine President Ferdinand “Bongbong” Marcos Jr. vetoed House Bill 10554 in July 2024, citing legal issues. This previous iteration of the bill would have expanded the franchise area of DLPC to include several parts in Davao del Norte that NORDECO currently services. These include Tagum City, the Island Garden City of Samal, and the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod. NORDECO has an existing franchise until 2028 for the mainland and 2033 for Samal Island.
In his veto, the President said the bill violates Section 27 of Republic Act No. 9136 or the Electric Power Industry Reform Act. This provision allows existing franchises to run their full term.
The non-impairment clause under Section 10 of Article III of the 1987 Constitution is also violated by the resulting repeal of NORDECO’s franchise over the expanded area.
With this approval of the House committee report on the substitute bill expanding DLPC’s franchise area, the power company is once again poised to provide reliable and affordable electricity to consumers in Davao del Norte. It could also be an important step in Mindanao’s journey towards energy security.
Source: House committee favors expanding Davao Light franchise area
