HOUSE Bill 11072, expanding the franchise area of Davao Light and Power Company (Davao Light) in areas previously under Nordeco, was approved on second reading on Tuesday.
The bill provides expands the company’s franchise area to include Maco in Davao de Oro, and Tagum City, the Island Garden City of Samal, and municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in Davao del Norte.
The bill 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 of 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.
Davao Consumer Movement rejoiced for the approval of the House bill saying it is “a victory for the people of Davao del Norte and Davao de Oro.”
“Despite the dilatory tactics and obstacles mounted by NORDECO and those who opposed the bill on its way to being approved,” the group said in a statement.
The group also lauded the Congress, especially principal author Rep. Migs Nograles and Chairman Gus Tambunting for defending the bill, and Governor Edwin Jubahib for his assistance in the legal battle.
“The fight is not yet over but we the consumers will celebrate this significant win,” the group stressed.
The group continued to push the passage of the law to officially expand the franchise area of DLPC, due to incompetent service and high rates of Nordeco.
File photo by Bing Gonzales
