Northern Davao Electric Cooperative, Inc. (Nordeco) has reaffirmed its position as the legitimate electricity distribution utility for Davao del Norte, Davao de Oro, and the Island Garden City of Samal (Igacos). The cooperative is directly challenging what it describes as unauthorized encroachment by Davao Light and Power Company (DLPC) within its franchise territory.
Legal Standoff Intensifies
In a strong statement issued early this week, Nordeco condemned Davao Light's claims of operational authority, labeling the rival company's activities as "illegal" in areas covered by its franchise. The cooperative maintains that Davao Light lacks proper legal standing to assume control or management of Nordeco's service area, characterizing such claims as improper, incorrect, and fundamentally unlawful.
Nordeco Acting General Manager Elvera Alngog emphasized their legal position, stating in both English and Cebuano: "This remains the legitimate electric distribution utility authorized by law and operating in the provinces of Davao del Norte and Davao de Oro, including the Island Garden City of Samal (Igacos)."
The official highlighted that only the Supreme Court possesses jurisdiction to resolve the matter, pointing to Nordeco's ongoing petition for Certiorari and Prohibition challenging Republic Act 12144. The cooperative insists that until the High Court issues a definitive ruling, any operational moves by Davao Light within Nordeco's territory remain legally premature.
Cooperation Under Protest
Despite the escalating legal conflict, Nordeco continues to cooperate with Davao Light's limited operational activities in specific areas. This cooperation includes meter reading, billing operations, payment collection, and establishment of customer service points in locations such as Tagum and Igacos.
Nordeco clarified that this arrangement does not constitute surrender or acceptance of Davao Light's claims. Instead, it represents a pragmatic approach to prevent service disruptions for consumers while awaiting the court's final decision.
Alngog reiterated the cooperative's commitment to its member-consumer-owners, promising uninterrupted service "until the Supreme Court speaks." She affirmed Nordeco's determination to maintain operations and protect its franchise rights, asserting its continued legal status as the distribution utility in contested regions.
Broader Implications and Future Outlook
The conflict between Nordeco and Davao Light represents a significant clash between cooperative rural electrification models and private utility expansion. For Nordeco, the battle centers on preserving its franchise and protecting the rights of its member-consumer-owners. For Davao Light, the expansion promises potential benefits including greater operational scale, modernized infrastructure, improved service efficiency, and possibly lower consumer rates if the takeover proceeds.
Davao Light has defended its entry into disputed territories as a "partnership" rather than a takeover. Company executives have stated their intention to collaborate with Nordeco, retain existing employees, and prioritize local suppliers during any transition period.
Meanwhile, Davao Light announced a substantial P1 billion investment plan to acquire Nordeco's assets in Davao del Norte and Davao de Oro. This investment forms part of their strategy to upgrade and modernize power distribution systems in the newly covered areas.
The legal confrontation reached a critical point in early 2025 when Republic Act No. 12144 lapsed into law on April 6. This legislation expanded Davao Light's franchise area to include key portions of Davao del Norte and Davao de Oro, specifically Tagum City, Igacos, and multiple municipalities across both provinces.
Nordeco immediately challenged the measure as unconstitutional, arguing it violates non-impairment of contracts, due process principles, and existing franchise agreements protected under Presidential Decree 269, the Electric Power Industry Reform Act (Epira), and the NEA Reform Act.
The cooperative has taken proactive measures by filing a Petition for Certiorari and Prohibition before the Supreme Court and initiating renewal procedures for its existing franchise, which remains valid until 2028 in mainland areas and 2033 in Igacos.
The ongoing dispute between these two energy providers has reached a decisive phase in 2025, marked by complex legal maneuvers, legislative strategies, and a contentious transition process that carries significant implications for electricity consumers throughout Davao del Norte, Davao de Oro, and the Island Garden City of Samal.
