THE Davao Light and Power Company Inc. has expressed its support for the advancement of Senate Bill 2888 and House Bill (HB) No. 11072, which proposes to expand its franchise area to now include Davao de Oro, aside from Davao del Norte, province presently served by the Northern Davao Electric Cooperative (Nordeco).
Following the Senate's approval of the legislation on its third and final reading last week, the country’s third-largest electric utility company reiterated its pledge to deliver secure, dependable, and efficient power services.
In a statement provided to VoxPop Davao on Thursday, February 6, 2025, the company highlighted its commitment to working closely with stakeholders to facilitate a seamless transition should the bill be signed into law.
“We remain committed to providing safe, reliable, quality, and efficient electricity service to our customers and will continue to work closely with stakeholders to ensure a smooth transition should the bill be enacted into law. Expanding our reach would be an honor and we look forward to the opportunity of serving more customers in the Davao Region,” Davao Light stated, further clarifying that they will continue to closely monitor the progress of the bill’s status in the legislative and will provide updates on any significant developments as necessary.
On February 5, a coalition of electric cooperative consumers from various areas in the region urged President Ferdinand "Bongbong" Marcos Jr. to reject the controversial bills that would allow the Aboitiz-owned Davao Light to take control of a 25-year franchise and expand its coverage to include Tagum City, the Island Garden City of Samal, and the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in Davao del Norte, as well as Maco in Davao de Oro.
In addition to a peace rally held in Davao City, thousands of protesters, including electric cooperative members, stakeholders, the clergy, nuns, and progressive activist groups, gathered for a rally and "unity walk" in Tagum City to oppose the passage of the bill.
Protesters argued that the move was unconstitutional, violating the 1987 Constitution and that its passage would have significant negative consequences for Davao City.
One of the major points of contention is the potential for an electricity rate increase. Protesters fear that if Marcos Jr. does not veto it, electricity prices will rise and it will lead to further economic and social strain on the city and surrounding areas.
“Naglisod na gani sila sa mga balayrunon diha sa ilahang kuryente nga kooperatiba ang nagkuha. What if nalang kaya kung mahimong pribado? Ang mahitabo niana, mas musaka pa jud ilang mga balayrunon,” Northern Davao Chapter United Daneco Employees Welfare Association (Udewa), Vice President Ryan Val A. Tiago expressed his opinion about the potential privatization of the cooperative
(Consumers are already struggling with their electric bills when they are served by an electric cooperative, how much more if it is already by a private company? Their bill will surely increase if that happens).
The same sentiment was first echoed by Nordeco itself in a letter penned to Marcos Jr. on January 30, claiming that it violates legal principles, particularly the non-impairment of contracts. The cooperative argues that its franchises are valid and subsisting until 2028 for the Mainland and 2033 for the Island Garden City of Samal.
Nordeco also asserts that the proposed bill would place an increased burden on consumers, as the acquisition of its assets—many of which are funded by government subsidies and consumer equity—would lead to higher costs. According to Nordeco, these added expenses would likely be passed on to consumers by Davao Light.
However, in a phone interview with a resident of Kapalong, Davao del Norte, who wished to remain anonymous, she expressed support for the bill, stating that it offers hope for those who have long been frustrated with the poor service provided by the local electric cooperative.
"We’ve experienced the terrible service firsthand," the resident said. "The power interruptions and lack of reliable electricity have been ongoing issues, and we welcome any step that could improve our situation. This bill may be small, but it’s a step toward better service for us," the resident said.
On the other hand, another interviewee, a 25-year-old virtual assistant from Asuncion, Davao del Norte, who has been a Nordeco consumer for decades, expressed optimism about the bill. The individual shared that she had long dealt with unreliable service and was hopeful that Davao Light would provide better service. She also mentioned that she was pleased to see the legal movement, viewing it as a positive step forward, as it would result in a more consistent power supply with fewer interruptions in the future.
In a December 2024 interview, Davao Light Head Enriczar T. Tia assured consumers that the proposed extension of Davao Light’s coverage would not result in higher electricity rates, contrary to some fears circulating in the community.
Tia emphasized that, far from increasing costs, the expansion would likely lead to a reduction in electricity rates. He elaborated that the rate structure for current Davao Light customers would remain unaffected.
“The rates will not increase. In fact, it will decrease. It will not affect the existing rates with the consumers of Davao Light but it will significantly lower down the rates for Nordeco customers,” Tia clarified. DEF
