DAVAO CITY – Davao del Norte Gov. Edwin Jubahib and various organizations welcomed proposed Senate Bill No. 2888 on Tuesday, April 1, calling it a “game-changer for two Davao provinces” as they await President Ferdinand Marcos Jr.’s approval.

MARCOS and Jubahib

SB No. 2888 which seeks to expand the franchise area of the Davao Light was transmitted to Malacañang for the President’s signature on March 6 following the Senate’s ratification of the proposed law.

In a joint statement of support for the Senate bill, Jubahib said that with the stroke of a pen, Marcos could finally end the power woes of the people, including businessmen, of at least 16 towns and two cities in Davao del Norte and Davao de Oro provinces.

At least 10 organizations are looking forward to the bill’s approval, following the concern with the Northern Davao Electric Cooperative (Nordeco) franchise areas, which was accused of “sloppy services and frequent power outages” that stunted the areas’ economic growth.

Jubahib, dissatisfied with Nordeco’s poor services, emphasized that a robust and stable power supply is essential to socio-economic prosperity, especially in attracting investments, creating jobs, and uplifting communities.

“For this reason, it is disheartening that the province of Davao del Norte finds it difficult to lure big investors and accelerate economic growth with the unstable power supply, higher electricity rates, and poor services provided by Nordeco,” Jubahib said.

The statement added that residents and businesses in the local government units (LGUs) under the Nordeco franchise have long suffered from inefficient services hampering progress in these areas.

Jubahib said despite the continuous complaints from consumers and repeated requests from local government officials and business groups, Nordeco has made minimal progress in resolving the long-standing issues affecting communities.

The governor criticized the utility provider for failing to reduce system losses, enhance collection efficiency, and improve service quality, a clear disservice to the province's people.

“I refuse to remain passive while they continue to suffer. My deep concern for their well-being led me to organize public consultations and awareness campaigns to educate residents on the electricity crisis, a crucial public welfare matter," Jubahib said.

The governor stressed the need for people to understand the consequences of the ongoing power issues and explore possible solutions.

He said his duty to serve the public's best interests compelled him to act, however, he was given an additional 30-day suspension last year.

Jubahib commended the Senate for approving a bill to expand Davao Light's franchise area, which now includes Tagum City and the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in Davao del Norte’s first district, along with the Island Garden City of Samal in the second district.

Jubahib said the final decision now rests with Marcos, as the people can only hope he will heed their demand for a dependable power supply, which is vital for the province’s economic growth, and pointed out that Davao Light is a reliable electricity provider.

Nordeco wrote an open letter to Marcos on Jan. 30, 2025 opposing Senate Bill No. 2888 and House Bill No. 11072 to uphold constitutional integrity, safeguard public interest, and support rural electrification.

The electric cooperative pointed out that though Marcos previously vetoed House Bill 10554 due to constitutional and legal concerns, Senate Bill 2888 contains similar controversial provisions.

Nordeco cited that among the bill's violations and legal concerns is the non-impairment of contracts, as Nordeco holds valid, subsisting franchises until 2028 for the mainland and 2033 for the Igacos.

It emphasized that the proposed bill contradicts Section 10, Article III of the 1987 Constitution, which explicitly forbids impairing contractual obligations.

It argued that by allowing Davao Light to replace Nordeco before its franchises expire, Senate Bill No. 2888 unlawfully interferes with vested property rights and the contractually mandated franchise duration.

The electric cooperative said that the bill violates Section 27 of the EPIRA Law which ensures electric cooperatives can operate for the full duration of their franchises.

"The expansion of DLPC’s franchise blatantly disregards this legal protection. Allowing DLPC to take over Nordeco’s service areas would set a harmful precedent, undermining laws designed to protect cooperative-led rural electrification," the cooperative said.

Nordeco argued that the bill constitutes a "collateral attack on a franchise," noting that legal precedents prohibit such challenges against existing franchises. It said that franchises can only be contested through direct legal proceedings.