An official of the Davao Light and Power Company (Davao Light) revealed on Friday that the power utility company is willing to sit down with the officials of the Northern Davao Electric Cooperative, Inc. (NORDECO, Inc.) for a smooth transition once the bill that would expand the franchise of the Davao Light will be approved.
Davao Light president and Chief Operating Officer Enriczar Tia said this is Davao Light’s position amid the resistance of NORDECO to House Bill (HB) 11072, which sought to expand Davao Light’s franchise in Davao del Norte and part of Davao de Oro.
“I understand nga naay resistance from the existing, our position is we will not move in na parang hostile, we will be there to sit down with the existing NORDECO once we transitioned and talk about, we also need employees and they have their existing employees, they have their resources, the assets, the hardware is there, so we will sit down together with them and discuss this thoroughly for a smooth transition anyway at the end of the day we have a common interest which is to really serve the customers better,” Tia said during Business Matters media forum at Hukad, Ayala Malls Abreeza.
According to Tia, it’s a privilege for Davao Light to be able to extend its service to Davao del Norte and Davao de Oro.
“We know that we’re proud to have a good brand service here in Davao City and extending that to Davao del Norte and Davao de Oro is such a privilege for us,” Tia said.
The Senate Bill 2888/ House Bill 11072 reads: “Amending for the purpose Republic Act No. 11515, entitled “An Act extending for another 25 years the franchise granted to the Davao Light and Power Company, Inc.,” under Republic Act. 8960, entitled “An Act further extending the term of the franchise granted to Davao Light and Power Company, Inc., to construct, operate, and maintain an electric light, heat, and power system in Davao City, and the municipalities of Carmen, Panabo, Dujali and Santo Tomas, Province of Davao del Norte, for 25 years and other purposes.”
A new section denominated Section 21-A is inserted after Sections 21 and 22 of the same Act, providing for the transition of operations from NORDECO to Davao Light.
Last month, NORDECO appealed through a letter sent to President Ferdinand R. Marcos Jr. to veto the bill that would allow the Davao Light to extend its franchise into areas in the Davao Region currently being served by Nordeco, this after the Senate recently approved the bill on third and final reading.
Nordeco mentioned in its letter that to date, more than 80,000 households in 631 remote, financially unviable sitios under Nordeco’s jurisdiction remain to be electrified.
NORDECO pointed out that HB 11072 breaches the Non-Impairment of Contracts provision in the 1987 Constitution, since it possesses valid franchises until 2028 for the mainland and 2033 for the Island Garden City of Samal (IGaCoS).
The cooperative further argues that the bill violates Section 27 of the Electric Power Industry Reform Act (EPIRA), which safeguards electric cooperatives by ensuring their franchises for the complete duration.
Tia emphasized while the bill is still pending in Congress and will be transmitted to the Office of the President until such time that the President acts on it then that’s the time that Davao Light will sit down and talk with Nordeco.
“There were exhausted efforts already during the hearing both the Senate and the House and both the House and the Senate already concurred that the customers deserve better service and it’s also part of the growth and development probably of the LGU and businesses there to have stable power. We all know that power is one of the basic infrastructures needed for the growth of a certain city,” he said.
