Davao Light eyes renewal of permit to operate

MANILA, Philippines — Aboitiz-owned Davao Light and Power Co. Inc. is seeking regulatory approval for the renewal of its certificate of public convenience and necessity (CPCN), which is set to expire this year.

Davao Light is a grantee of the legislative franchise to build, operate and maintain a power system in Davao City, Panabo City and the municipalities of Carmen, Dujali and Santo Tomas in Davao del Norte for 25 years or until September 2025.

Its franchise term was then extended for another 25 years or until September 2050, in accordance with Republic Act 11515.

With the extension of its franchise term, the power distributor filed an application before the Energy Regulatory Commission (ERC) seeking to renew its required CPCN, which is valid only until September this year.

CPCN is a permit issued by the regulator to entities engaged in the transmission and distribution of electricity.

The company said it wants to secure its CPCN renewal at the “soonest time possible” to ensure that it has all the legal requirements to “continuously operate the distribution system within its franchise area.”

“Davao Light respectfully submits that there is a clear and sufficient basis for the issuance of provisional authority or interim relief through a provisional CPCN, pending the issuance of a final resolution in this application,” it said.

In response, the ERC said it found Davao Light’s application “sufficient in form,” directing the power distributor to host a virtual hearing to determine its compliance with jurisdictional requirements.

“Davao Light shall guarantee that, during the conduct of the expository presentation, the participation of the public shall not be impaired,” the commission said.

Davao Light is the third-largest privately owned distribution utility in the country in terms of customer size and annual energy sales.

As of September last year, the company’s customer base stood at 490,052, with a recorded peak demand of 537 megawatts.