The Energy Regulatory Commission, of course, can resolve the standoff quickly …
What was supposed to be a swift transition to a stable electricity supply has turned into a tug-of-war, with hapless consumers finding themselves on the receiving end of the impasse.
Davao Light and Power Co. of the Aboitiz Group is the beneficiary of Republic Act 12144 that lapsed into law in April this year.
The law aims to put an end to power outages in the townships of Davao del Norte and Davao de Oro, along with Tagum City and Island Garden City of Samal covered by the franchise of Northern Davao Electric Cooperative (Nordeco).
RA 12144 effectively stripped Nordeco of its service rights over an estimated 80,000 households and business establishments in the cities of Tagum and Samal, along with the municipalities of Asuncion, Kapalong, New Corella, San Isidro and Talaingod in Davao del Norte; and Compostela, Laak, Mabini, Maco, Maragusan, Mawab, Monkayo, Montevista, Nabunturan, New Bataan, and Pantukan in Davao de Oro.
The law gave Davao Light and Power the authority to take over Nordeco’s franchise covering the said communities after the latter’s poor performance that resulted resulted in persistent brownouts and blackouts.
Executing the new law, however, is easier said than done. Nordeco filed an appeal with the Supreme Court (SC) questioning the legality of its impending loss of business in favor of Davao Light.
The High Court has not yet resolved the legal issue. That means electricity consumers in Nordeco’s old franchise will continue to grope in the dark and bear brownouts and power outages until the SC put clarity on RA 12144.
The Energy Regulatory Commission (ERC), of course, can resolve the standoff quickly by granting a Certificate of Public Convenience and Necessity to Davao Light. This would allow the company to take over Nordeco’s franchise area.
Davao Light, in the meantime, has done some spade works preparatory to the expansion of its franchise area. The utility just had a ceremonial installation of 45 new poles over its new franchise areas.
Davao Light also broke ground on a digital substation and warehouse site in Tagum partly in fulfillment of its mandate under RA 12144.
Ending the power woes of the twin Davao provinces is not even close to ultimately resolving outages across the country.
The recent power outage in Boracay last week highlighted the role of power infrastructure or distribution system in the energy sector.
Being naturally archipelagic, numerous islands and landlocked provinces are likewise suffering persistent brownouts. Among them are Oriental Mindoro, Occidental Mindoro, and Siargao.
Focus group discussions conducted by energy consumer group ILAW in these areas revealed deep frustration among consumers and business owners, particularly in the hospitality and food industries.
The participants expressed dismay over Siargao Electric Cooperative (Siarelco) and the Oriental Mindoro Electric Cooperative (Omeco), rating their service and performance as subpar.
Siarelco received an average rating of 4.6, with some businesses rating it as low as 1. The island experiences frequent power outages and voltage fluctuations, leading to equipment damage and business losses of up to P100,000 per blackout incident.
Based on National Electrification Administration’s compliance report for electric cooperatives, Siarelco’s System Average Interruption Frequency Index (SAIFI) and System Average Interruption Duration Index (SAIDI) in the first quarter of 2025 were pegged at 1.67 and 101.79 minutes, respectively. It also has a system loss of 1,726 megawatt-hours or 8.24 percent.
The SAIDI determines the total duration of power interruption for an average consumer over a certain period of time. The SAIFI indicates the total number of times an average consumer experiences power interruption over a certain period
Ormeco was rated 4.5 out of 10, with businesses in Puerto Galera complaining about unannounced power outages, lack of infrastructure investment and frequent disruptions that forced establishments to issue customer refunds or slash prices.
Small-scale electric cooperatives may have outlived their usefulness, given the increasing electricity demand from an expanding population and technology advances.
The ERC, meanwhile, will play a key role in speeding up the resolution pending issues relative to electricity distribution.
The regulator vowed to adopt summary proceedings for certain types of applications deemed critical to ensuring the quality, reliability and affordability of electricity supply nationwide.
The ERC said the move aimed to speed up the government’s target of achieving total electrification across the country.
ERC chairman Francis Saturnino Juan said the initiative reflects the commission’s drive toward faster and more efficient regulation, in line with its vision of a “new ERC.”
“We will do everything we can to accelerate the resolution of applications filed before the ERC. Streamlining our processes is key to fulfilling our commitment to a more responsive and revitalized ERC,” Juan said.
ERC’s response is timely given the sad state of electricity distribution in the countryside.
As I have cited in my previous column, insufficient power supply across the Philippines and the high cost of acquiring electricity are critical issues that prevent the country from achieving an inclusive economy.
Electricity consumers deserve a break.
E-mail: rayenano@yahoo.com or extrastory2000@gmail.com
