THE power supply issues in the Island Garden City of Samal (Igacos) continue to significantly impact local businesses, particularly in the tourism and retail sectors.
Ninia Bella, an entrepreneur and owner of a small pastries and cakes store, shared how her bakery business has been affected by constant power fluctuations and frequent brownouts. She said that her appliances, including her chiller vital for storing cakes, are damaged due to the unreliable electricity, leading to interruptions in her business.
The instability in the power supply in Igacos is not a new problem. Residents and businesses have long endured power disruptions since the late 1990s, and the situation worsens during the summer months.
Bella is one of many affected by the alleged poor service of the Northern Davao Electric Cooperative (Nordeco), which serves 16 municipalities and two cities, including parts of Davao del Norte and Davao de Oro.
“Maka-apekto gyud sa negosyo kay madaot man among mga ingredients o produkto nga naga-depende sa kuryente. Ma-kulbaan lang mi kung unsa na pod na appliances ang maguba. Kay pati among TV, ug mga pet nga isda nangamatay na tungod sa sigeng brownout (It really affects the business because our ingredients or products that rely on electricity get damaged. We get worried about which appliances will break next. Even our TV and pet fish have died because of the constant brownouts),” Bella said in an interview with SunStar Davao on April 2, 2025.
Bella revealed how the power interruptions forced her to stop accepting orders for months due to the damage to her refrigeration units. To safeguard her remaining appliances, she has installed automatic voltage regulators (AVRs) but remains concerned about the ongoing power fluctuations. She also emphasized that these challenges hurt both her business and the wider local economy.
The unreliable power supply is not only a business concern but also a growing issue for Igacos' economic development.
Ilaw Pilipinas, a non-profit grassroots organization, recently discussed the devastating effects of frequent blackouts on the tourism sector during their second Focus Group Discussions (FGDs).
Ilaw Youth convenor Francine Pradez and National Convenor Beng Garcia warned that continued outages and the inefficiency of Nordeco could lead to significant financial losses for businesses, with the potential for a four-fold economic decline. This would have repercussions beyond tourism, negatively affecting daily operations across the region.
Local business owners and residents voiced concerns about the alleged lack of urgency in addressing the power crisis. One anonymous business owner claimed that Nordeco's failure to provide a timely response to complaints could result in lost investor confidence and stymie efforts to create job opportunities. A tourist industry participant shared that the frequent outages severely disrupt businesses reliant on a steady power supply.
“The lack of immediate solutions from Nordeco will have lasting effects on the island and the province, leading to a loss of investor confidence and hampering efforts to create job opportunities and sustain economic growth,” he said.
The alleged dissatisfaction with Nordeco's service is widespread, with participants in the FGDs giving the electric cooperative a dismal rating of 2.45, reflecting the frustration with its unreliable service. Business owners also criticized Nordeco's inflexible payment policies, despite its poor service record.
“On top of this, Nordeco has failed to improve its response time to consumer complaints. To make matters worse, they are very strict when it comes to payment policies despite their unreliable service,” a business owner remarked.
Another participant in the FGDs shared how the power outages have disrupted the tourism industry, which is the lifeblood of businesses on the island.
However, the frustrations are not limited to business owners alone; many consumers and residents also voiced their dismay at the lack of long-term action from local government officials. Despite numerous complaints, little has been done to address the ongoing power crises.
The FGDs were conducted to better understand the energy challenges in these areas, with the goal of providing data-driven recommendations to local and national policymakers to support tourism businesses and address power instability.
Thus, Ilaw Pilipinas is calling for stronger accountability measures for electric cooperatives, particularly those serving tourism hubs like Samal. The organization has urged the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to implement stricter penalties for service failures and enforce mandatory compensation policies for affected businesses.
“Continued power instability threatens business sustainability, job security, and the long-term growth of the tourism sector. If this persists, businesses will have no choice but to shut down, leaving many without jobs,” Ilaw national convenor Beng Garcia warned.
The group also called for increased investment in renewable energy, community microgrids, and energy storage systems to ensure a more reliable power supply for tourism-dependent regions. They emphasized that effective coordination between the Department of Tourism (DOT), the DOE, and the ERC is vital to properly address the energy needs of the tourism sector.
Meanwhile, the Davao Consumer Movement has also expressed its support for the recent release of the study by Ilaw.
The study reveals that 74.29 percent of small and medium-sized enterprises (MSMEs) on the island are suffering daily revenue losses ranging from P10,000 to P30,000, while larger businesses face losses of approximately P100,000 each day. Power outages are identified as a major factor disrupting business operations, forcing many entrepreneurs to halt or delay their activities. In response, businesses have been compelled to adopt cost-cutting measures such as downsizing their workforce, reducing inventory, and shortening business hours.
The research indicates that the financial setbacks for Samal’s entrepreneurs range from P10,000 to P100,000 per day, underscoring the urgency for local authorities and relevant stakeholders to address these issues and mitigate the ongoing impact on the island's economy.
In 2024, Igacos Mayor David Uy warned of an estimated fourfold financial loss once the Samal Island-Davao City (SIDC) Connector, also known as the Davao-Samal Bridge, is completed, if power issues remain unresolved.
He revealed that the city currently loses approximately P120 million to P150 million annually due to the alleged unreliable service of Nordeco.
Uy outlined specific losses across various sectors, including around P50 million annually in tourism, P30 million in local businesses, P50 million in households, P10 million in public services and infrastructure, and about P20 million in the agriculture and fisheries sectors, totaling at least P120 million to P150 million in financial damages.
Since 2022, Uy has consistently criticized the veto of House Bill No. 10554 after President Ferdinand "Bongbong" Marcos Jr. signed it which aimed to extend the franchise coverage of Davao Light and Power Company (Davao Light) to other areas in Davao del Norte. Uy labeled the veto a "mistake," as the island continues to suffer from poor power connections.
Early this year, Nordeco appealed to Marcos through an open letter dated January 30, opposing Senate Bill No. 2888 and House Bill No. 11072, which seek to extend Davao Light's franchise coverage into Nordeco's service areas.
The letter, signed by at least 28 Nordeco officials, was submitted to Malacañang on February 6. It raised concerns about potential violations of constitutional principles, particularly the "nonimpairment of contracts," as well as the adverse economic and social impacts of the proposed expansion.
Nordeco argues that the bills infringe upon its existing franchises, which are valid until 2028 for the Davao mainland and until 2033 for Samal Island. The cooperative contends that the proposed legislation violates the Electric Power Industry Reform Act (Epira), which guarantees the protection of electric cooperatives’ franchise rights for their full term.
As of February 2025, the bills are awaiting a decision from the current administration. DEF