Davao Light franchise expansion becomes law

House Bill 11072, expanding the franchise area of Davao Light in places being served by Nordeco, has lapsed into law; Consumer movement welcomes new law, urges Nordeco to coordinate closely with Davao Light for the benefit of consumers
Davao Light franchise expansion becomes law
Davao Consumer Movement/File Photo
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THE Davao Consumer Movement (DCM), one of the largest consumer advocate groups in the region, has welcomed the passage of House Bill (HB) 11072, which lapsed into law on April 6, 2025. 

HB 11072 aims to expand the franchise area of Davao Light and Power Company (Davao Light), enabling it to serve additional areas previously under the Northern Davao Electric Cooperative (Nordeco). 

The bill lapsed after President Ferdinand “Bongbong” R. Marcos Jr. did not act on it within the 30 days prescribed by the Constitution.

The legislation was approved on the third and final reading in the House of Representatives on December 10, 2024. Meanwhile, the Senate passed the bill on February 4, 2025, which aims to improve power distribution in the region.

In a statement provided to SunStar Davao, DCM convenor Ryan Amper expressed optimism about the new law. He said this would open up new economic opportunities for residents in Tagum City, the Island Garden City of Samal (Igacos), and the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in Davao del Norte, as well as Laak, Mabini, Maco, Maragusan, Mawab, Monkayo, Montevista, Nabunturan, New Bataan, and Pantukan in Davao de Oro. 

These areas will soon be served by the country’s third-largest utility provider.

“DCM has always believed that stable, reliable, and affordable power will allow businesses to operate smoothly and open new growth opportunities. The improved power situation will also enhance the quality of life for residents of Davao del Norte and Davao de Oro,” the group’s statement read.

However, Amper acknowledged that the transition to Davao Light’s service in the expanded areas would take time. He urged Nordeco to collaborate closely, respectfully, and harmoniously with Davao Light, ensuring that the needs of consumers are prioritized during the transition.

“Cooperation between all parties is crucial to ensure that the transition happens quickly and smoothly,” the statement added.

The bill’s passage was championed by Senators Francis “Chiz” G. Escudero, alongside Raffy Tulfo, chairman of the Senate Committee on Public Services, Juan Miguel “Migz” Zubiri, the principal author of the bill and his co-authors Ronald “Bato” dela Rosa, Grace Poe, Senate Minority Leader Koko Pimentel, Win Gatchalian, and Risa Hontiveros.

Amper also expressed his gratitude to Representatives Migs Nograles, the principal author of HB 11072 in the House of Representatives, and Gus Tambunting, chair of the House Committee on Legislative Franchises, for their efforts in facilitating hearings that highlighted the bill's importance. 

He also thanked local leaders, including Governors Edwin Jubahib of Davao del Norte and Dorothy Gonzaga of Davao de Oro, for their unwavering support and advocacy.

Meanwhile, Davao Light has expressed its commitment to working with Nordeco to ensure a smooth transition and uninterrupted power supply during the handover process. 

Davao Light also emphasized that the expansion is intended as a partnership, not a takeover, with plans to prioritize the hiring of existing employees in Nordeco and engaging current suppliers.

Nordeco has been opposing the bill, citing concerns over potential constitutional issues and the impact on electricity rates. The cooperative argues that the bill infringes upon its existing franchise rights, which are valid until 2028 for the mainland and 2033 for the Igacos. Nordeco also contends that the proposed expansion could result in higher electricity costs for consumers in the affected areas.

On April 7, Fermin Edillon, head of Davao Light's reputation enhancement department, told SunStar Davao in a phone interview that the company had yet to receive official communication from the Office of the President or the concerned national government agencies. 

“In the meantime, we are staying focused on delivering reliable and affordable electricity across all areas we serve,” Edillon said.

As of press time, no statement has been released by Nordeco and Sunstar Davao is open to air their side on the matter. DEF

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