LEADING international and business chambers in the Davao Region have expressed concerns about the impact of inadequate electricity services on the region’s economic welfare.
Tony Peralta, chairman of the European Chamber of Commerce of the Philippines-Southern Mindanao Business Council (ECCP-SMBC), told VoxPop Davao on Thursday, February 6, 2025, that subpar electric service could negatively impact business development and hinder expansion efforts. He emphasized that the flow of foreign investments would be affected, as a reliable energy supply is crucial for promoting a sustainable economy.
“My position has always been that of consistency and the economy of providing electricity to growing communities,” he stated in a phone interview following the Senate's approval of Senate Bill No. 2888 and House Bill (HB) No. 11072 on the third and final reading.
The passage of the measure to expand the coverage and grant Davao Light and Power Company Inc. (Davao Light) a 25-year franchise to operate within the current jurisdiction of Northern Davao Electric Cooperative (Nordeco) was approved by the House of Representatives and transmitted to the Senate in December.
“Electric cooperatives 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 said.
He explained that Nordeco has had ample time to improve its services, but inefficiencies continue to cause opportunity losses. He added that these inefficiencies lead to poverty and reduced tax revenues for local government units (LGUs).
“Nordeco’s mandate is to provide electricity according to the terms of its franchise. The development of communities, with businesses, schools, and hospitals, depends on the availability of affordable electricity, which must be provided consistently,” he said.
“The failure of electric cooperatives to meet their mandate deters businesses from locating in communities, impacting the pace of job creation. Too often, the stunted development of communities is due to poor power supply, as businesses are hesitant to establish or expand operations,” Peralta stressed.
He concluded that unreliable, costly electricity stifles business growth and investment.
“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 said.
Earlier this year, Peralta projected that Mindanao's economy would grow by six to seven percent in 2025, surpassing the national Gross Domestic Product growth forecast of five percent. This growth is driven by strong tourism, a booming real estate market, and a thriving ICT sector, particularly Business Process Outsourcing (BPO), highlighting Mindanao's increasing importance in the national economy.
Meanwhile, Davao City Chamber of Commerce and Industry Inc. (DCCCII) President Dr. Ronald Suico affirmed the chamber’s commitment to respecting legal decisions, especially if they contribute to economic development and innovation.
“As the President of the Davao Chamber of Commerce, my primary concern is the economic welfare of businesses and consumers in our region. From a business perspective, competition is always beneficial, it drives innovation, improves service quality, and leads to better pricing for consumers. The introduction of more players in any industry often results in enhanced efficiency and customer satisfaction, which ultimately fuels economic growth,” he said.
“However, I recognize that the issue of franchise expansion involves complex legal considerations. As business leaders, we respect the rule of law and defer to legal experts on franchise matters. It is within the purview of lawmakers, regulators, and the courts to decide on the legality of overlapping franchises. Our focus remains on ensuring that Davao’s power consumers, including businesses and households, receive the best possible service at the most competitive rates,” the official maintained.
Suico urged all stakeholders to collaborate for an efficient and dynamic energy sector that supports Davao’s economy and its residents.
“We encourage all stakeholders, government agencies, industry players, and consumer groups, to work together toward a sustainable and competitive energy sector that serves the best interests of Davao’s economy and its people,” Suico added.
House Bill No. 11072, authored by Senator Juan Miguel "Migz" Zubiri, with co-authors Senator Bato dela Rosa and Senator Grace Poe, seeks to expand the franchise area of Davao Light to serve consumers in the City of Tagum, 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 the entire province of Davao de Oro. DEF
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