Mindanao Development Authority (MinDA) Deputy Executive Director V of Assistant Secretary Romeo Montenegro said on Thursday that when House Bill 11072, a bill expanding the franchise area of Davao Light and Power Company, becomes a law it is expected to result in better and improved services to the consumers.
The Congress approved in the third and final reading House Bill 11072 during the regular session of the 19th Congress on December 10, 2024.
“It so happens that Davao City and the part of Davao del Norte like Panabo City is served by a private distribution utility which is different from an electric cooperative kasi a private distribution utility has the financial flexibility to provide the services needed, it can invest, compared to an electric cooperative na very limited ang opportunity nila to serve kasi nga it operates the principle of the non-profit. Doon makikita natin yung difference,” Montenegro said.
House Bill 11072 seeks to expand the franchise area of Davao Light to the municipality of Maco in Davao de Oro, Tagum City and Island Garden City of Samal (IGaCoS) in Davao del Norte, and municipalities in Davao del Norte namely Asuncion, Kapalong, New Corella, San Isidro, and Talaingod.
The said areas are currently under the Northern Davao Electric Cooperative, Inc. (NORDECO).
Montenegro said the expansion covers of an area being served by a private distribution utility then most likely Davao Light can deal even with the increasing demand.
“In the case of Davao, which is the largest off-taker of electricity in Mindanao. Seguro si Davao Light tumatakbo 500 megawatts, so naturally it has been able to really work in terms of contracting, planning, and forecasting of new demand coming into Davao City,” he said.
Montenegro added that Davao Light factored in already in their forecasting and planning to cover potential expansion areas later on if ever the bill becomes a law.
Montenegro said at the end of the day the question is whether or not it will result in better services to the consumers of the electricity.
“Iyan din ang inaasahan natin na this law will result in the improvement of the services considering the certain limitations of an electric cooperative in many challenges. Not just dito sa atin sa Davao area but also other areas in Mindanao,” he said.
