Power co-ops oppose expansion of Davao Light franchise area

THE Philippine Rural Electric Cooperatives Association (Philreca) expressed its opposition to legislation expanding the franchise area of Davao Light and Power Co., Inc. (DLPC).

In a statement over the weekend, Philreca said Senate Bill (SB) No. 2888 will “effectively take over” the franchise area of Northern Davao Electric Cooperative, Inc. (Nordeco).

“This blatant disregard for the contributions and sacrifices of electric cooperatives over the decades is not only unjust but is also posing a serious threat to the long-term welfare of our member-consumer-owners and the integrity of rural electrification in the Philippines,” Philreca said.

SB 2888 seeks to expand DLPC’s coverage area to include Tagum City, Samal Island, and the municipalities of Asuncion, Kapalong, New Corella, San Isidro and Talaingod, in Davao del Norte, as well as the municipality of Maco in Davao de Oro.

The group said that the bill sets a “dangerous precedent” for the industry.

“If private for-profit companies are freely granted franchises at the expense of electric cooperatives, this will accelerate the outright takeover of the entire power distribution sector, leaving consumers vulnerable to profit-driven interests,” it said.

“Electric cooperatives were established with a mission to provide service, not profit. Unlike private for-profit companies, they reinvest revenue into system improvements, expansion, and service reliability,” it added.

Philreca also questioned the absence of provisions tasking DLPC with electrifying all unserved areas and lowering system losses.

Nordeco, which serves parts of Davao de Oro and Davao del Norte, was established to provide electricity to urban and remote areas, according to its website. Its franchise area is adjacent to Davao Oriental Electric Cooperative, Inc. to the west, Agusan del Sur Electric Cooperative, Inc. to the north, and DLPC to the east.

DLPC is the country’s third largest electric distribution utility in terms of customers and annual kilowatt-hour sales. It holds a legislative franchise to build, operate and maintain a power system in Davao City, Panabo City and the municipalities of Carmen, Dujali and Santo Tomas in Davao del Norte for 25 years or until September 2025.

The franchise term was extended for another 25 years or until September 2050 by Republic Act No. 11515. — Sheldeen Joy Talavera