THE Davao Consumer Movement lauded the passage of the committee report on the substitute bill for the expansion of the franchise area of the Davao Light and Power Company (Davao Light) to several parts of Davao del Norte currently serviced by the Northern Davao Electric Cooperative (Nordeco).
DCM convenor Ryan Amper said that representatives of Nordeco failed to present new arguments to defend their position against the bill during the deliberation on September 27, 2024, at the House of Representatives.
The deliberation lasted for an hour. Deputy Minority Leader Rep. Wilter Palma made the move to approve the committee report, seconded by Davao Oriental Rep. Cheeno Miguel Almario.
Amper said the other party continued to give out the same arguments that were exhaustively discussed in previous hearings.
Representatives Gus Tambunting and Migs Nograles stated that Nordeco's requests and concerns were thoroughly addressed and revised as needed during earlier hearings.
During the recent hearing, the issues about power rates were raised again. However, the Energy Regulatory Commission and AboitizPower made it clear that there are mechanisms in place to ensure that power rates will remain competitive.
“As part of the bill that was authored, it is our expectation that we will do a round of competitive selection process and open it up to all generators to ensure that we get the least cost generation,” said AboitizPower Distribution Group Chief Operating Officer Anton Perdices.
He added, “So that way we can ensure that the prices either maintain or go lower but to absorb all of it, it is not part of the bill. So we don't see that scenario where the price for Davao light will go up by 0.30 centavos.”
Amper said the approval is “another welcome development in our fight to call for a better power distributor in Davao del Norte.”
“It was a long journey to get to this point. Months of committee hearings, making adjustments to the substitute bill, and one deliberation after another. But the destination it got us was a sweet victory for the people of Davao del Norte,” he said.
The convenor said the consumers have suffered “high power rates, poor power services, and appliances breaking down one after another due to power interruptions.”
He also thanked the lawmakers who took part in crafting this bill.
Meanwhile, Nordeco said in a Facebook post that they will continue to oppose House Bill 6740, which would allow the expansion of the operation of the Aboitiz-owned power company in areas they currently serviced.
The proposed expansion of DLPC's franchise area runs counter to Section 27 of Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act (EPIRA) of 2001, which states that "all existing franchises shall be allowed to their full term,” Nordeco said.
The power cooperative also emphasized that it is the member-consumer-owners who should be the ones who should be handling the operation of a power company.
“Nordeco strongly believes that the electric cooperatives should be owned by the communities and the member-consumer-owners they serve, not by the oligarchs, not by the few elites,” they said.
President Ferdinand "Bongbong" Marcos Jr. previously vetoed House Bill (HB) 10554 on July 28, 2022, which aimed to expand the franchise coverage of the Davao Light and Power Company (Davao Light) to parts of Davao del Norte serviced by Nordeco, including Igacos.
Based on the letter dated July 27, the President explained that the bill cannot be approved as it violates a provision in the constitution provided that Nordeco's franchise in the province has yet to expire in 2028 and 2033. RGL