Energy consumer organization ILAW has welcomed the enactment of Republic Act 12144, which expands the franchise coverage of Davao Light to various areas in Davao del Norte and Davao de Oro.

Republic Act 12144, which lapsed into effect on April 6, 2025, allows Davao Light to take over the operations of the Northern Davao Electric Cooperative (NORDECO) in several areas. These include Asuncion, Kapalong, New Corella, San Isidro, Talaingod, Tagum City, and the Island Garden City of Samal (IGACOS) in Davao del Norte, as well as Laak, Mabini, Maco, Maragusan, Mawab, Monkayo, Montevista, Nabunturan, New Bataan, and Pantukan in Davao de Oro.

“This is a vital and long-overdue step toward addressing the persistent power issues that have disrupted business operations and the lives of residents in these areas, particularly in the Island Garden City of Samal (IGACOS),” the group said in a statement.

“We call on the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to ensure a smooth transition and guarantee that the law delivers on its promise of an improved and reliable service for the people of Davao del Norte and Davao de Oro,” it added.

ILAW recently held a focus group discussion (FGD) where it heard firsthand the plight of affected business owners in ICAGOS over the severe economic impact of unstable electricity supply and unreliable service.

According to ILAW, the frequent and prolonged power interruptions due to NORDECO’s inefficiency have inflicted thousands of pesos in daily revenue losses for businesses and missed livelihood opportunities for workers.

“The lack of immediate solutions from NORDECO will have lasting effects on the island and the province, leading to a loss of investor confidence and hampering efforts to create job opportunities and sustain economic growth,” a business owner disclosed.

NORDECO has also drawn criticism from FGD participants, earning an average rating of 2.45, reflecting widespread dissatisfaction with its unreliable service.

“Frequent and prolonged blackouts have disrupted the tourism industry, which is the lifeblood of businesses in the area, and the way of life on the island,” an FGD participant pointed out.

“On top of this, NORDECO has failed to improve its response time to consumer complaints. To make matters worse, they are very strict when it comes to payment policies despite their unreliable service,” another business owner added.

They also lamented the lack of long-term action from the local government to address power issues despite complaints from businesses and consumers.

ILAW, for its part, called on the DOE and the ERC to impose stricter accountability measures on electric cooperatives operating in tourism hubs.

“There is a need for penalties for service failures and the implementation of mandatory compensation policies to protect affected businesses,” ILAW youth convenor Francine Pradez stressed.

The group also recommended investing in renewable energy, community microgrids, and energy storage systems to provide more reliable power to tourism zones.

The organization also emphasized the need for closer coordination between the Department of Tourism (DOT), DOE, and the ERC to effectively represent the tourism sector’s interests in energy planning.