Davao Light Expands Operations with Takeover of Nordeco Substations in Davao del Norte
In a significant development for Northern Mindanao's energy sector, Davao Light and Power Company, Inc. (Davao Light) has officially assumed control of four critical substations previously operated by the Northern Davao Electric Cooperative Inc. (Nordeco). The takeover, which occurred on Wednesday, March 25, 2026, covers facilities located in the barangays of Canocotan, Mirafuentes, and Apokon in Tagum City, as well as in the Municipality of Asuncion, Davao del Norte. This strategic move signals a major shift in the region's power distribution landscape, with potential implications for energy reliability, investment climate, and regional economic activity.
Court-Enforced Transfer of Power Assets
The acquisition was executed through the enforcement of a writ of possession issued by the Regional Trial Court (RTC) Branch 2 in Tagum City. Acting on a ruling dated February 27, 2026, the court sheriff formally assumed possession of the facilities and facilitated their transfer to Davao Light. In addition to the substations, the transfer includes Nordeco's office in Tipaz, Magugpo, Tagum City. A Notice to Vacate was served earlier on March 16, 2026, paving the way for the formal turnover. However, it is important to note that the writ does not include the distribution lines serving Tagum City, highlighting the partial nature of this transition.
This step is part of Davao Light's preparations to begin operations in Tagum City and the rest of Davao del Norte, ensuring that residents and businesses will soon benefit from reliable and efficient electricity service, as stated in the notice. The company, led by Aboitiz Power, aims to expand its distribution network and strengthen its presence in high-growth areas across Mindanao, positioning itself to manage a larger portion of the power supply chain in the future.
Legal Challenges and Operational Hurdles
Despite the court order, Nordeco has contested the move, filing a Petition for Review and Certiorari before the Supreme Court, along with a request for a temporary restraining order. The cooperative emphasized that the dispute is ongoing and that it retains its franchise until 2028, arguing that multiple providers may legally coexist under Supreme Court jurisprudence. Nordeco's statement read, "Nordeco informs our valued member-consumer-owners (MCOs) that it is NOT FINAL as our Electric Cooperative has filed before the Supreme Court the Petition for Review and Certiorari and Issuance of Temporary Restraining Order, docketed as G.R. No. E-05431 on the issued Writ."
Operational challenges also loom large, as Davao Light officials disclosed that some of the acquired substations are aging and may require immediate rehabilitation. Additionally, limited availability of operational data, such as load distribution and maintenance history, complicates the transition process. A key concern involves potential service disruptions in municipalities like New Corella, Talaingod, Kapalong in Davao del Norte, and Laak in Davao de Oro, which depend on the Asuncion substation. Both entities have expressed a shared interest in preventing interruptions, with Davao Light calling for cooperation from Nordeco officials to ensure a smooth transition.
Economic Implications and Consumer Impact
Provincial leaders are closely monitoring the situation for its economic implications. Davao del Norte Governor Edwin Jubahib highlighted that improved electricity services could unlock new growth opportunities by attracting investments in manufacturing, agribusiness, and digital industries. Stable power supply is crucial for business efficiency and reducing disruptions, potentially leading to increased investments, job creation, and expansion of local enterprises. However, Jubahib acknowledged that the transition must be carefully managed to avoid short-term economic setbacks from any power supply interruptions.
For consumers, immediate concerns include billing and service quality. Davao Light clarified that it has not yet assumed control over distribution networks, meaning it is not currently responsible for issuing electricity bills in the affected areas. Billing will only commence once legal authority over distribution assets is secured, at which point a baseline meter reading will be conducted to establish a reference for future cycles. Consumers are expected to receive advance notice regarding payment cut-off dates and the transition to a new billing system.
A High-Stakes Transition for the Region
The takeover of the four substations marks a critical but incomplete phase in restructuring power distribution in Davao del Norte. With legal proceedings pending before the Supreme Court and operational integration yet to be finalized, the situation remains fluid. The outcome will significantly impact businesses and investors through electricity reliability and costs, while consumers await clarity on service quality and long-term provider stability. As Davao Light navigates these challenges, its efforts to modernize infrastructure and enhance coordination will be key to shaping the region's energy future.
