House committee favors expanding Davao Light franchise area

Davao Light and Power Company (DLPC) linemen. Mindanews file photo

DAVAO CITY – The Davao Consumer Movement (DCM) has lauded the approval of a House committee report on the substitute bill expanding the franchise area of the Aboitiz-led Davao Light and Power Company (DLPC) to include parts of Davao del Norte.

In a statement released on Friday, Ryan Amper, DCM convenor, said the deliberation and subsequent approval of the committee report last Sept. 24 is a welcome development in their calls for better power providers in the province that has suffered from high power rates, poor services, and damaged appliances due to blackouts.

Amper said the group continues to hope that the substitute bill would become a law, as it has already been a “long journey” after months of committee hearings and improving its provisions.

“Definitely, the light is shining brighter at the end of the tunnel. We thank all the lawmakers who took part in the crafting of this bill,” he added.

The statement said that representatives from Northern Davao Electric Cooperative or NORDECO failed “to present new arguments to defend their position against the bill” during the recent deliberation.

Last July 2022, President Ferdinand “Bongbong” Marcos Jr. vetoed House Bill 10554 providing for the inclusion of Tagum City, Island Garden City of Samal, and the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod, Davao del Norte within the franchise of DLPC.

These areas are being serviced by the NORDECO, which has an existing franchise for the mainland until 2028 and Samal until 2033.

DLPC currently services Davao City, Panabo City, and the municipalities of Carmen, Dujali and Sto. Tomas in Davao del Norte.

The President cited some constitutional and legal challenges in his veto of the bill.

He said the bill violates Section 27 of Republic Act No. 9136 or the Electric Power Industry Reform Act, which says that “all existing franchises shall be allowed to their full term.”

He said the resulting repeal of NORDECO’s franchise over the expanded franchise area also violates the non-impairment clause under Section 10 of Article III of the 1987 Constitution. (Antonio L. Colina IV/MindaNews)