Davao Light Assumes Control of Key Power Assets in Davao del Norte Following Court Order
In a significant development for the energy sector in Mindanao, Davao Light and Power Company Inc. has taken possession of four critical substations in Davao del Norte after a Regional Trial Court in Tagum City enforced a writ of possession on March 25, 2026. This move represents a major step in the Aboitiz-led utility's planned expansion into Tagum City and surrounding areas, potentially reshaping power distribution and economic activity throughout the province.
Court-Ordered Transfer of Power Infrastructure
The enforcement action followed a February 27, 2026 court ruling, with a court sheriff facilitating the transfer of assets that include substations located in Barangays Canocotan, Mirafuentes, and Apokon within Tagum City, plus an additional facility in Asuncion. The Nordeco–Tipaz Office Building in Magugpo, Tagum City was also vacated as part of this process, with authorities having served a Notice to Vacate on March 16 to clear the way for the turnover.
"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," the company stated in an official announcement.
It's important to note that the writ specifically covers substation infrastructure but excludes distribution lines in Tagum City, indicating the partial nature of this initial transition phase.
Strategic Expansion Amid Legal Challenges
Davao Light's entry into Davao del Norte forms a crucial component of parent company Aboitiz Power's broader strategy to strengthen its distribution network across high-growth areas in Mindanao. The acquisition of these substations represents a pivotal step toward establishing operational control, as these facilities regulate and distribute electricity across local grids.
However, the Northern Davao Electric Cooperative (Nordeco) has contested the takeover, filing a petition for review and certiorari along with a request for a temporary restraining order before the Supreme Court. The cooperative maintains that the dispute remains unresolved and that it continues to pursue all legal remedies to prevent service disruptions.
"Nordeco informs our member-consumer-owners that the case is not final, as the cooperative has filed a petition for review and certiorari and a request for a temporary restraining order before the Supreme Court," the cooperative declared in a statement.
Operational Challenges and Transition Concerns
The transition has raised several operational concerns, particularly regarding potential service disruptions in areas dependent on the Asuncion substation, including New Corella, Talaingod, Kapalong in Davao del Norte, and Laak in Davao de Oro. Any lack of coordination between the two utilities could negatively impact power delivery to these communities.
Davao Light faces additional challenges following the takeover, including aging substations that may require immediate rehabilitation or upgrades. Company officials have also cited limited access to critical operational data such as load distribution patterns, maintenance records, and system performance metrics—information essential for efficient grid management.
Despite these constraints, Davao Light expressed confidence in its ability to address these issues through technical upgrades and improved coordination in the coming months. Both utilities have stated their commitment to avoiding service interruptions during this transition period.
Economic Implications and Future Developments
Provincial leaders are closely monitoring the situation for its potential economic impact. Davao del Norte Governor Edwin Jubahib emphasized that improved and reliable power supply could attract new investments and drive economic growth across multiple sectors.
"Stable electricity is key for industries such as manufacturing, agribusiness, and digital services, allowing businesses to operate more efficiently," Jubahib noted, adding that Davao Light's entry could enhance regional competitiveness, create employment opportunities, and expand local enterprises.
Regarding consumer billing, Davao Light clarified that it has not yet assumed control of distribution networks and is not currently issuing electricity bills in affected areas. The company indicated that billing will commence only after securing legal authority over distribution assets, with baseline meter readings to be conducted first to establish reference points for the new billing system.
As this power distribution transition unfolds, all parties emphasize the need for careful management to balance expansion goals with maintaining uninterrupted service for consumers throughout the region.
