DAVAO CITY- The plan of Davao Light and Power Company (DLPC) to expand its franchise area will not automatically lead to power rate hikes in the expanded areas.
Fermin Edillon, head of the DLPC Reputation Enhancement Department said the scenario only will happen if the Davao Light and Power Company absorbs the supply contract of the Northern Davao Electric Cooperative (NORDECO)
The statement was in response to the House committee hearing on legislative franchises held on Sept. 27, 2024 where the Energy Regulatory Commission (ERC), assessed that Davao Light’s expansion won’t necessarily translate to higher prices.
The ERC simulation showed a P0.30 kilowatt per hour increase if ever the DLPC pushes through in acquiring the franchise area of the NORDECO.
“New power supply contracts through a competitive selection process can make this a non-issue,” Edillon said.
“Davao Light, the third-largest private utility company in the Philippines, currently boasts lower power rates compared to neighboring electric cooperatives; this reflects the company’s commitment to securing the most affordable power contracts for its customers, he added.
Fluctuations in power generation rates, often driven by geopolitical and economic factors, are beyond the control of any distribution utility according to the DLPC official.
The power company, a subsidiary of AboitizPower, is still keen in acquiring NORDECO whose franchise area has been wracked by power woes.
However NORDECO in a statement says the electric cooperative is not for sale.
Meanwhile, the House Committee on Legislative Franchise during a hearing on Sept. 24 approved a report on a substitute bill that would expand the franchise of DLPC covering parts of Davao del Norte currently serviced by NORDECO. (PIA/RGA)
