THE business community in Tagum City is optimistic about a more stable and prosperous future as Davao Light and Power Company, Inc. (Davao Light) officially broke ground for its new digital substation and began installing electric poles on July 8, 2025, signaling the start of its operations in the area.
The event marked a historic milestone following the implementation of Republic Act No. 12144, which formally transferred the electric franchise areas of Tagum City and the Island Garden City of Samal (Igacos) from the Northern Davao Electric Cooperative, Inc. (Nordeco) to Davao Light. The law took effect on April 6, 2025, and is expected to transform the power landscape in Davao del Norte and parts of Davao de Oro.
In a statement posted on its Facebook page, the Tagum City Chamber of Commerce and Industry, Inc. (TCCI) said the city, together with the rest of Davao del Norte, “is set for a brighter future”.
“For years, local businesses struggled under a power regime where there are constant and long brownouts, high power rates, and poor customer service,” the post read.
It also stated that this had made local businesses struggle to temporarily close during long brownouts and pay high electricity bills
To cope with the unreliable power supply, they were forced to purchase generators, voltage regulators to handle the unpredictable electricity, and replacement equipment for items ruined by the frequent outages and surges.
“Thus, the passage of Republic Act 12144, which allowed Davao Light to expand its services to Davao del Norte, bodes well for the business climate of not only Tagum City but of Davao del Norte as a whole,” the statement added.
The chamber also hopes to see an improvement in power services and rates in the coming years with the entry of Davao Light in Tagum City.
“These improvements will allow the business community to explore and tap new opportunities,” the post read.
It also explained that reduced power rates mean savings for businesses, enabling them to invest in upgrades or expand their operations. It added that a more dependable power supply also enhances the area's appeal as an investment hub, fostering economic growth across the city and province and a rise in investors could also generate more job opportunities for the city.
“The ground breaking of Davao Light’s substation is just the beginning. We hope that after this the power distributor will hasten its expansion to serve the needs of the people of Davao del Norte,” its statement read, appealing to Nordeco to “cooperate and work together during the transition”.
In a stratified random survey by the Davao Consumer Movement (DCM) conducted from April 20 to 26, sampled 1,500 respondents each from Davao del Norte and Davao de Oro. The results released later in May revealed overwhelming public support for Davao Light’s takeover of areas previously served by Nordeco. In Tagum City alone, 98 percent of respondents favored the transition, while support reached 99 percent in the Island Garden City of Samal (IGaCoS) and 92 percent in Nabunturan, Davao de Oro. Overall, the survey showed that 97.55 percent of residents in Davao del Norte and 80 percent in Davao de Oro were in favor of Davao Light’s entry.
Davao Light reported that it has begun engaging Nordeco to form a Joint Transition Committee that will facilitate a smooth and coordinated handover of operations across the affected areas. The company reiterated its commitment to ensuring continuity of service and minimizing disruptions during the transition.
However, Nordeco maintained that it remains the exclusive power distributor in its existing franchise areas, including the entire province of Davao de Oro and most of Davao del Norte, excluding Panabo City and the towns of Carmen, Braulio E. Dujali, and Sto. Tomas. The cooperative stressed that RA 12144 is still under judicial review, with a pending Petition for Certiorari and Prohibition before the Supreme Court. It warned that implementing the law without final resolution is premature. DEF