PBBM urged to veto bills allowing Davao Light to take over Nordeco

TAGUM CITY (MindaNews / 5 Feb) — A multisectoral alliance of electric cooperative consumers has called on President Ferdinand Marcos Jr. to veto the controversial bills that could enable the Aboitiz-owned Davao Light and Power Company (DLPC) to take over the franchise area currently served by the Northern Davao Electric Cooperative (Nordeco).

Protesters oppose the planned takeover by the Davao Light and Power Company of the Northern Davao Electric Cooperative’s franchise as they march around Tagum City’s thoroughfares on Tuesday (4 February 2025). CHRIS V. PANGANIBAN

On Tuesday, around 4,000 protesters, including electric cooperative members, stakeholders, the clergy, nuns, and even progressive activist groups, gathered in Tagum for a “unity walk” following a Eucharistic Mass at Christ the King Parish.

The march culminated at the Trade Center Pavilion, where leaders from various groups took the stage to urge President Marcos to reject Senate Bill No. 2888 and House Bill No. 11072.

Letter of appeal

During the rally, a letter—signed by Nordeco officials and independent groups supporting the electric cooperative—addressed to President Marcos was presented. It outlined several concerns with the proposed bills, particularly citing potential constitutional violations, legal issues, and adverse economic and social impacts.

“Your Excellency, the stakes of this issue extend beyond a single franchise. At its core, this is about upholding constitutional protections, preserving public trust, and safeguarding the welfare of vulnerable communities,” the letter asserted.

Protesters also symbolically expressed their anger by throwing rotten tomatoes at a tarpaulin featuring the Aboitiz siblings’ image.

Broad support

The protest was supported by various groups, including the National Center of Concerned Electric Consumers Inc. (NCCECO), Alliance for the People’s Protection of Electricity Consumers, Freedom from Debt Coalition, and the Coalition Against Privatization of Electric Cooperatives.

Other organizations that lent their support included the Catholic clergy in Tagum, the Sisters Association in Mindanao, pastors of the United Church of Christ in the Philippines, the Akbayan Partylist, and the Makabayan bloc.

Nordeco’s opposition to the bills

Nordeco, in a statement on Jan. 29, voiced strong opposition to House Bill No. 11072, which had been approved by the House of Representatives and forwarded to the Senate in December.

The cooperative denounced the bill as “unconstitutional in its entirety” and warned that its passage could lead to higher electricity costs for consumers.

“Moreover, the bill in both its original and amended forms is anti-people,” said Nordeco acting general manager Elvera Alngog. “It is therefore fitting that this bill should be disapproved.”

Officials of Northern Davao Electric Cooperative throw rotten tomatoes at a tarpaulin featuring pictures of the Aboitiz siblings to symbolically express their anger. MindaNews photo by CHRIS V. PANGANIBAN

Background

Legislative attempts to allow DLPC to expand into Nordeco’s franchise area have been ongoing for several years, with significant backing from Mindanao lawmakers, including former House Speaker Pantaleon Alvarez. However, President Marcos vetoed a similar bill in 2022, citing concerns over encroaching on Nordeco’s territory, which holds valid franchises in these areas until 2028 and 2033.

Had the bill passed, DLPC would have gained the right to distribute electricity for the next 25 years in several areas currently served by Nordeco, including Tagum City, the Island Garden City of Samal, and other towns in Davao del Norte.

Consumer group vs. Nordeco

While Nordeco and its supporters strongly oppose the bills, they have found opposition from the Davao Consumer Movement.

Ryan Amper, convenor of the movement, defended Senate Bill No. 2888, stating that it does not violate the Philippine Constitution.

He cited a Supreme Court ruling (G.R. No. 264260) which clarified that electric cooperatives do not have an exclusive constitutional right to a franchise within their coverage areas.

Amper also highlighted the differences in electricity reliability between DLPC and Nordeco, pointing to data from the Department of Energy showing that DLPC’s average annual brownout duration was significantly lower (209 minutes) compared to Nordeco’s (242.33 minutes).

Senate Bill No. 2888, introduced by Sen. Juan Miguel Zubiri, also referenced the lower electricity rates in DLPC’s service area, claiming that consumers using at least 200 kWh per month in Davao Light benefit from around P700 in savings. In contrast, Nordeco has argued that its distribution, supply, and metering charges are significantly lower—34.7% less than DLPC’s rates.

Furthermore, Nordeco disputed the findings presented at a Senate hearing, accusing the sub-committee led by Zubiri of providing “inaccurate and misleading” data regarding the performance and rates of the two electric cooperatives. (Chris V. Panganiban / MindaNews)