Study underscores difficulty of businesses in Samal to operate properly due to power woes

The Davao Consumer Movement welcomed the recent findings of the focus group discussion study of ILAW that highlighted the current plight of businessmen of the Island Garden City of Samal (IGaCoS) due to power woes.

In a statement, the Davao Consumer Movement emphasized that findings reiterate the difficulty of Samal Island businesses to operate properly due to unreliable power service, which limits their growth in terms of opportunities and profits.

The group cited the key findings of the study, which revealed that 74.29 percent of MSME respondents report daily revenue losses between P10,000 and P30,000, whereas larger businesses face approximately P100,000 in losses each day.

The study highlighted that power outages compel businesses to halt or delay their operations, forcing them to adopt cost-reduction strategies such as workforce downsizing, lowering inventory levels, or reducing business hours.

According to Davao Consumers, Mayor Al David Uy disclosed that the city has been incurring an annual loss of P50 million in the tourism industry due to persistent power issues.

Based on the group’s discussions with local businesses on the island, businesses reported broken appliances due to intermittent brownouts limiting their operations.

The group said this is not only limited to the businesses but also to online workers on the island who have expressed disappointment over the unreliability of power.

“But, this is not only the reality of those living on Samal Island. It is also the same for those living in the area served by the Northern Davao Electric Cooperative (NORDECO). For decades the electric cooperative has not lived up to its promise to provide reliable and affordable electricity. What they are giving instead is unreliable service and expensive electricity,” said Ryan Amper, convenor of the Davao Consumer Movement.

The group underscored that the solution to this ongoing power woes on the island is a change in the power provider of the people of Davao del Norte and Davao de Oro, which Senate Bill 2888 (House Bill 11072) seeks to address.

“As the deadline of the bill nears, we call on President Ferdinand Marcos, Jr., to sign the bill into law,” Amper said.

The HB 11072 seeks to expand the coverage area of Davao Light and Power Company, Inc. to include customers currently served by NORDECO.

“Once signed into law, this will have a long-term positive impact on the people of Davao del Norte and Davao de Oro. In the case of Samal, it will finally be able to reach its potential into becoming a major tourism powerhouse in Mindanao,” the group said.

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