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Solution urged as Samal residents, businesses reportedly continue to languish under Nordeco

ONCE A premier tourist destination in the country, attracting thousands of local and foreign visitors, the Island Garden City of Samal might become a place that people avoid at all costs.

However, this is not due to environmental degradation but rather the persistent problem of power shortages.

At the center of the issue is the unreliable service of the Northern Davao Electric Cooperative (Nordeco), which has long been a source of frustration for the residents of Samal Island.

According to Senator Miguel Zubiri, frequent and prolonged power outages have taken a heavy toll on the island’s tourism industry, which serves as the backbone of the local economy and the livelihood of its residents. Where resorts used to be bustling with tourists, now only a handful of visitors remain.

Zubiri added: “Can you blame them for choosing to leave and find another destination with a stable power supply, rather than endure the heat and have their vacation ruined by Nordeco’s failures?”

And it’s not just tourists who are suffering. Small businesses, students, and the daily lives of Samal residents are also severely impacted by poor service.

According to Samal Island Mayor David Uy, the recurring power outages cost different sectors between ₱120 million to ₱150 million in losses annually. Topping the list is the tourism sector, losing ₱50 million per year, followed by ₱30 million in losses for local businesses.

Households suffer damages amounting to ₱50 million, infrastructure losses reach ₱10 million, while ₱20 million is lost in the agriculture and fisheries sectors.

Mayor Uy said he has been dealing with Nordeco’s inefficiencies since he was a city councilor in 2007 and continues to face an overwhelming number of complaints—not just from resort owners but also from residents whose livelihoods have been affected.

Aside from unreliable service, Nordeco’s exorbitant electricity rates have also been a long-standing concern for Samal residents.

In 2022, Nordeco charged ₱16.9425 per kWh, which was ₱3 higher than other electric cooperatives operating in the Davao Region. For instance, reports indicate that the Davao del Sur Electric Cooperative and the Davao Oriental Electric Cooperative charged only around ₱13 per kWh.

In September 2024, however, the utility company charged P12.0085 for residential rates.

In desperation, Samal residents held an interfaith prayer rally in March last year, hoping for a resolution. The event saw participation from various sectors, including the United Filipino Consumers and Commuters, the Tagum Chamber of Commerce and Industry, labor groups, students, and barangay officials.

Tragically, their rally was interrupted, ironically enough, because of a power outage in the middle of their activity.

To address the issue, the local government has already invested ₱300 million in a submarine cable to secure a more stable electricity supply for the city. Samal is also looking into investing in renewable energy, but officials recognize that this is only a temporary solution.

Zubiri said what the city truly needs is a reliable baseload power supply—which can only be provided by a competent power distributor with a proven track record of serving consumers efficiently.

In Congress, a bill has already been passed to extend the franchise of Davao Light, allowing it to serve Samal, Tagum City, and the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod, as well as the provinces of Davao del Norte and Davao de Oro.

Now, it only awaits the signature of President Marcos to become a reality.

On Jan. 30, 2025, Nordeco penned an open letter addressed to President Marcos to prevent the bill’s passage due to legal and Constitutional infirmities.

As Zubiri pointed out, Davao Light has successfully provided reliable electricity to Davao City, Panabo City, and the municipalities of Carmen, Dujali, and Sto. Tomas in Davao del Norte. If given the chance, it could finally put an end to the suffering of Samal Island residents.

“Let’s hope that President BBM will not disappoint Samal Island, whose people have long been yearning for this solution,” he said. 

 

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