CITING chronic power outages and subpar electricity services that continue to hamper economic growth, the Philippine Chamber of Commerce and Industry-Davao Oriental Chamber of Commerce and Industry Inc. (PCCI-Davao Oriental) has officially called on Congress to expand the franchise of Davao Light and Power Company, Inc. (Davao Light) across the entire province.
In Board Resolution No. 004, Series of 2026, adopted during a special board meeting on September 28, 2026, and signed on October 2, 2026, the business group called on the Senate and the House of Representatives to pass legislation extending Davao Light's franchise to Mati City and the municipalities currently served by the Davao Oriental Electric Cooperative Inc. (Doreco).
The resolution followed a request from Davao Oriental Governor Nelson L. Dayanghirang Sr. for support from the business sector for provincial power stability initiatives.
PCCI-Davao Oriental cited persistent electricity supply problems in the province, including frequent brownouts and voltage fluctuations, as reasons for seeking a change in power distribution arrangements.
The resolution stated that “the Province continues to experience concerns over unstable and insufficient power supply within the franchise area of the Davao Oriental Electric Cooperative, Inc. (Doreco), including frequent and prolonged brownouts, unannounced interruptions, low voltage, and power quality issues that disrupt businesses, tourism establishments, households, and public services.”
The chamber stressed that dependable electricity is necessary to sustain economic activity and improve residents' quality of life.
“Whereas, a stable, reliable, and sufficient electricity supply is indispensable to the growth of commerce, industry, tourism, agriculture, and the overall quality of life of the people of Davao Oriental,” the resolution added.
Davao Light's expanding franchise
The proposed expansion comes as Davao Light continues to extend its operations into areas previously served by the Northern Davao Electric Cooperative Inc. (Nordeco).
Republic Act No. 12144, which took effect in April 2025, expanded Davao Light's legislative franchise to cover Tagum City, the Island Garden City of Samal, and additional municipalities in Davao del Norte and Davao de Oro.
The law includes seven local government units in Davao del Norte, namely Tagum City, City of Samal, Asuncion, Kapalong, New Corella, San Isidro, and Talaingod, and 11 municipalities in Davao de Oro: Compostela, Laak, Mabini, Maco, Maragusan, Mawab, Monkayo, Montevista, Nabunturan, New Bataan, and Pantukan.
These areas were previously within Nordeco's franchise, while Davao Light already served Davao City, Panabo City, and the municipalities of Carmen, Braulio E. Dujali, and Santo Tomas in Davao del Norte.
The franchise expansion has since progressed through court-authorized transfers of distribution assets and operations.
In May 2026, Davao Light assumed distribution operations in Tagum City and the municipalities of Kapalong, New Corella, and Talaingod following the implementation of a supplemental writ of possession.
The chamber cited the expansion as a precedent for its proposal, saying Davao Oriental should have access to a comparable alternative to address its electricity service concerns.
The resolution further stated that “the continued reliance of Davao Oriental solely on Doreco, without the benefit of a comparable franchise expansion or competitive alternative, places the province at a distinct disadvantage relative to its neighboring areas that now enjoy improved power distribution under DLPCI, thereby hindering investment, tourism growth, industrial expansion, and the overall competitiveness of local businesses.”
The group said unreliable power could constrain investments and development plans, including the operation of Mati City Airport, hotel and resort projects, and broader industrial activity.
Safeguards sought
While asking lawmakers to extend Davao Light's franchise, the chamber also called for provisions to protect consumers, workers, and electricity supply during any transition.
The chamber also urged energy regulators and utility agencies to accelerate infrastructure improvements, particularly the Maco-Mati 138-kilovolt transmission line.
The chamber also asked the Mati City Government and municipal councils across Davao Oriental to adopt supporting resolutions.
Copies of Board Resolution No. 004 were transmitted to congressional leaders, the chairpersons of the relevant Senate and House committees, and provincial officials for consideration.
As of press time, SunStar Davao had sought a statement from Davao Light regarding the proposed franchise expansion but had yet to receive a response. SunStar Davao also remains open to Doreco’s side on the matter.