CONGRATULATIONS to Davao Light and Power Co. for being issued a provisional certificate of public conveyance and necessity (PCPCN) by the Energy Regulatory Commission (ERC). With the PCPNC, the Davao City-based power distribution company can now start connecting electricity to residences and establishments in both Davao del Norte and Davao de Oro, whether new or with existing connections with the Northern Davao Electric Cooperative (Nordeco), if they want to. Davao Light has been issued authority by Congress under R.A. 12144 to expand its franchise areas in the two provinces mentioned, allowing for the change of power distributor in those provinces in the Davao Region. However, NORDECO has questioned the said law in the Supreme Court, temporarily putting on hold the assumption of Davao Light as the new electricity provider in all of the NORDECO franchise area. The grant of PCPNC is one clear indication of support by the ERC for the law allowing the expansion of Davao Light’s franchise in both Davao del Norte and Davao de Oro. Despite this, the company could also be taking some risks, as the Supreme Court’s decision on the law is still pending, and if they rule in favor of NORDECO, Davao Light’s investments could go to waste. The Supreme Court’s decision will ultimately determine the fate of the expansion, and if they believe there is no compelling reason to terminate early the NORDECO franchise, they will likely rule in favor of the current power distribution franchise holder. The consumers of the two Davao provinces, especially the business groups, will have reasons to be happy if the Supreme Court rules in favor of Davao Light, as it is expected that more will become beneficiaries than sufferers when a change of electricity provider is finally realized. However, the waiting time for the prospective beneficiaries is still uncertain.
