THE House of Representatives approved on third and final reading House Bill 11072, expanding the franchise area of Davao Light and Power Company (Davao Light) to areas previously served by Northern Davao Electric Cooperative, Inc. (Nordeco).
The House Bill garnered 181 votes in favor, nine votes against, and one abstention. The bill was approved on the final reading on December 10, 2024, during the 19th Congress.
Davao City Councilor Louie John Bonguyan, chairperson of the Committee on Energy, told VoxPop Davao on Thursday morning, December 12, 2024, at the Sangguniang Panlungsod, that before the bill was passed, he had already spoken with Davao Light in October. He raised concerns about the potential for an increase in electricity rates in Davao City and whether Davao Light had enough supply to meet the demands of the newly expanded areas.
Bonguyan added that Davao Light assured him there would be no rate increase, explaining that the company would be able to secure a lower price from its generators due to the large amount of electricity it would purchase.
“They guaranteed na dili musaka ang atoang electricity rate diri sa Davao City (They guaranteed that there will be no rate increase in the electricity rate here in Davao City),” he said.
He further said that Davao Light has already forecasted the number of megawatts needed for the expanded areas and that there is still a surplus of electricity in Mindanao. He assured that there would be no rotational blackouts and no rate increases.
The councilor also expressed that Mindanao still has a surplus of electricity because it is supplying the Visayas region due to the interconnectivity between Visayas and Mindanao.
Mindanao Development Authority (MinDa) Executive Director Assistant Secretary Romeo Montenegro also shared the same view, saying that private distribution utilities like Davao Light have a financial flexibility to provide the services needed of their consumers as they can invest or has the capacity to invest wherein cooperative electric utilities operate in the principle of non-profit.
“If the expansion covers an area being served by a private distribution utility, then most likely it can deal with an increasing demand in electricity,” Montenegro said during the Mindanao Yearend Reception hosted by the Department of Foreign Affairs at Dusit Hotel on December 12.
Meanwhile, the Davao Consumer Movement welcomed the approval of the House Bill, citing it as a significant win for the consumers of Davao del Norte and some areas in Davao de Oro. They also thanked the principal authors of the bill — Rep. Margarita Ignacia B. Nograles-Almario, Rep. Pantaleon D. Alvarez, and Rep. Maria Carmen S. Zamora — among others.
“People living in Davao del Norte and Maco, Davao de Oro are now one step closer to having reliable and affordable electricity. Our voices have been heard and we are ready to experience change after years of suffering under poor and expensive power services,” the movement said in their statement.
The group also thanked the local leaders of the areas who took the lead in improving the daily lives of their residents. They expressed their gratitude to the business groups and consumers who advocated for the bill on behalf of Davao del Norte and Maco, Davao de Oro.
According to Joberth Campos, 25-year-old virtual assistant from Kapalong, Davao del Norte, the expansion meant a lot for them as it will improve their quality of life in general.
He explained that as someone who grew up in an area where inconsistent and poor electrical service was a major problem, the franchise would ensure more households and businesses have access to stable and reliable electricity.
“The problem is that we have been experiencing frequent brownouts for so many decades now. Literal, substandard service. I think this is a good step that finally justice will be served to us, to the consumers” he said in a phone interview.
The same sentiment was also expressed by Jim Nuero, 23-year-old student from Maco, Davao de Oro, stating “I am happy of course that there is really a call for action. We are being heard and just a small step left and we will be able to get what we wanted in the beginning”.
Progilyn Porio, a resident of Maco, Davao de Oro, said that the passing of the bill is a welcome development since she heard from Dabawenyos that Davao Light has given good services to the city as well as responds to inquiries fast. She also expressed doubts on its services considering that Davao City and Davao de Oro differ in geographical aspect.
“Pero makaduhaduha sab since ang Davao de Oro kay lahi ug location compare sa Davao (geologically speaking) so basi maglahi sab ang need nila nga operational models and service areas so basi mas taas pa sila sa Nordeco ug singil pag-abot sa adlaw,” she said.
(Although I have second thoughts about it since Davao de Oro and Davao City have varying land areas (geologically speaking) so there is a chance that they will have different operational models and service areas so they might demand higher rates than Nordeco when they start their operation).
Meanwhile, Davao City Chamber of Commerce & Industry Inc. (DCCCII) outgoing president Belinda “Belle” L. Torres shared in an exclusive interview with VoxPop Davao that the House Bill expanding franchise of the utility company represents a major turning point for the region’s vibrant and thriving business environment.
“The expansion of Davao Light and Power Company’s franchise area marks a significant milestone for the business community in our region,” the official stated.
Currently, as Davao Light expands its network, more residential areas can be serviced, contributing to urbanization and meeting the growing demand for housing, investments, and other economic activities. This in turn attracts more investment opportunities and new business ventures.
“Reliable and efficient power supply is crucial for economic growth, and this development will undoubtedly enhance business operations, attract more investments, and support the expansion of key industries. It is a step towards ensuring that businesses, both big and small, can thrive under stable and sustainable energy services,” she added. RGP, DEF with reports from CEA
