DAVAO Light and Power Co. president and COO Enriczar T. Tia said they plan to sit down with the Northern Davao Electric Cooperative (Nordeco) for a smoother transition once the proposed expansion is approved.
During the Business Matters media forum on Friday, Tia expressed optimism about expanding their franchise area in Davao del Norte and Davao de Oro despite the continued resistance of Nordeco.
“I understand there is a resistance, that’s normal, but our position really is we will not move in there na parang hostile, we will sit down with the Nordeco once we transition, and talk about it,” Tia said.
He added it is a privilege for the company to extend service to the area, which shows their “good brand of service” in Davao City.
While Nordeco actively pushed for the bill to be vetoed, Davao Light said with the approval of the House of Representatives, this only means the customers deserve better service.
“It’s also part of the growth and development of local government units and businesses to have stable power, we all know that power is the basic infrastructure needed,” Tia added.
Following the approval of the House Bill 11072 in December, Nordeco penned an open letter to the President on Jan. 30, 2025, on their opposition to the bill.
In the letter, Nordeco stressed that the expansion is a “threat to rural electrification and the sitio electrification program, which Nordeco has been an indispensable partner of the government.
“To date, more than 80,000 households in 631 remote, financially unviable sitios under Nordeco’s jurisdiction remain to be electrified,” the letter reads.
It stressed that there is “little assurance” that DLPC will prioritize the challenging rural areas, citing DLPC’s historical performance “leaving 19% of its existing franchise area in Davao City unenergized even after decades of operation.”
“The expansion would thus leave thousands of families without the basic necessity of electricity, directly contradicting the President’s vision for comprehensive rural development,” it added.
Nordeco stressed they hold a valid, subsisting franchise until 2028 (for the Mainland) and 2033 (for the Island Garden City of Samal), hence the proposed bill violates Section 10, Article II of the 1987 Constitution, which prohibits the impairment of contractual obligations.
The Senate Bill 2888/ House Bill 11072 reads: “Amending for the purpose Republic Act No. 11515, entitled An Act extending for another 25 years the franchise granted to the Davao Light and Power Company, Inc., under Republic Act. 8960, entitled An Act further extending the term of the franchise granted to Davao Light and Power Company, Inc., to construct, operate and maintain an electric light, heat and power system in Davao city, and the municipalities of Carmen, Panabo, Dujali and Santo Tomas, Province of Davao del Norte, for a period of 25 years and for other purposes.”
A new section denominated Section 21-A is inserted after Section 21 and 22 of the same Act, providing for the transition of operations from the Northern Davao Electric Cooperative (Nordeco) to DLPC.
To ensure the uninterrupted supply of electricity in the new franchise area, Nordeco, in the interim, is authorized to operate the existing distribution system within the franchise areas and implement existing power supply agreements with the generation companies approved by the Energy Regulatory Commission until DLPC fully takes over.
Pursuant to Section 1 of the Act, such operation of Nordeco shall not be longer than two years from the effectivity of the Act.
Tia stressed that the company recognized the request that Nordeco sent to the Office of the President Ferdinand Marcos Jr.
“Until such time that the President acts on it, that’s the time we sit down and start the talks with them,” the official added.
