Cooperatives decry Davao Light expansion
The Philippine Rural Electric Cooperatives Association Inc. (Philreca) “strongly condemns” the aggressive push for a proposed bill that aims to expand the franchise area of Davao Light and Power Co. Inc.
In a statement, Philreca said the passage of Senate Bill No. 2888 “sets a dangerous precedent” for the entire country, particularly for the country’s power sector.
“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,” Philreca said.
Senate Bill No. 2888, filed by Senator Juan Miguel Zubiri, seeks to include Tagum City, the Island Garden City of Samal, and towns of Asuncion, Kapalong, New Corella, San Isidro and Talaingod in Davao del Norte as well as Maco in Davao de Oro in the coverage area of Davao.
It calls for transitioning operations that will authorize Nordeco to operate the existing distribution system within its former franchise area and implement power supply agreements that are provisionally or finally approved.
Nordeco may operate not longer than two years from the approval of the expanded legislative franchise of DLPC.
Zubiri said the proposed expansion of Davao Light’s franchise area “is the result of public clamor” as end-users in the above-mentioned areas “actively sought a more reliable electric distributor, as their last resort against the persistent power outages and poor service that they experience under their current distributor.”
