Nordeco Challenges Davao Light's Assertions on Samal Electricity Distribution Authority
In a significant development within the Philippine energy sector, the Northern Davao Electric Cooperative (Nordeco) has issued a firm rebuttal to claims made by Davao Light and Power Company (Davao Light) regarding its exclusive authority to distribute electricity in the Island Garden City of Samal (Igacos). Nordeco has characterized Davao Light's statements as both misleading and premature, emphasizing that critical legal proceedings remain unresolved and pending final judicial determination.
Legal Proceedings and Supreme Court Decision Status
Nordeco's press statement, released on March 10, 2026, directly addresses several assertions published by Davao Light on its official social media platforms the previous day. A primary point of contention revolves around Davao Light's citation of Republic Act No. 12144, which expanded its franchise area, alongside a unanimous Supreme Court ruling upholding the law's constitutionality, as the foundational basis for its operational mandate in Samal.
However, Nordeco has clarified that the legal case has not yet achieved finality. The cooperative explicitly stated, "There is no finality yet with the Decision of the Supreme Court pending its Resolution to the Motion for Reconsideration filed by Nordeco on March 5, 2026." This motion represents a crucial procedural step that must be adjudicated before any definitive legal authority can be conclusively established.
Constitutional Grounds for Coexistence and Franchise Validity
Beyond the immediate legal technicalities, Nordeco has vigorously defended the ongoing validity of its own franchise. The cooperative argues that, under Section 11, Article XII of the 1987 Philippine Constitution, as interpreted through previous jurisprudence involving cases such as the Iloilo electric cooperatives and MORE Electric and Power Corporation, its franchise can legally coexist with that of Davao Light. This constitutional provision is central to Nordeco's position that a dual-franchise framework remains permissible and legally sound during this transitional period.
This dispute is not an isolated incident but rather a continuation of a protracted legal and regulatory battle concerning power distribution rights in Samal. The island city historically falls within the franchise area serviced by Nordeco in Davao del Norte, making the current conflict a matter of significant regional importance and consumer interest.
Disputes Over Court Orders and Regulatory Certificates
Nordeco has also raised specific objections to Davao Light's interpretation of a writ of possession issued by the Regional Trial Court. According to the cooperative, this court order is currently subject to several unresolved motions filed as of February 24, 2026. Furthermore, Nordeco contends that the writ's applicability is limited, covering only distribution line assets in 26 of Samal's 46 barangays, based on annexes submitted by Davao Light in its original petition.
The cooperative has similarly questioned the legal standing and operational implications of the Provisional Certificate of Public Convenience and Necessity (CPCN) issued by the Energy Regulatory Commission (ERC). This certificate permits Davao Light to commence service in parts of Davao del Norte, including Samal, and Davao de Oro. Nordeco argues that the authority granted by this provisional certificate is inherently conditional, dependent upon Davao Light's successful establishment of its own independent distribution infrastructure. The certificate remains subject to specific regulatory requirements and ongoing hearings, meaning it is not yet final and executory.
Power Supply Agreement and Transition Provisions
Adding another layer to the controversy, Nordeco has disputed Davao Light's announcement of an exclusive power supply arrangement with Phil-Power Ventures. Davao Light stated this agreement took effect on February 25, 2026, and covers electricity generation intended for distribution in Samal. Nordeco claims this arrangement violates specific provisions of Republic Act 12144, particularly Section 21-A, which governs the transition of operations between an existing distribution utility and a new franchise holder.
Under this legal framework, Nordeco maintains it is still authorized to operate the current distribution system and to implement its existing supply agreements with power generation companies. This authority is stipulated to persist until the new franchise holder—Davao Light—establishes its own fully operational distribution network and formally assumes all related responsibilities. "Nordeco is not spreading misleading information. We do not want the conflict, which occurred around 14 years ago, to happen again where the member-consumer-owners (MCOs) are at the losing end," the cooperative emphasized, highlighting its commitment to protecting consumer interests.
Broader Implications and Stakeholder Concerns
The ongoing dispute between these two major utilities has captured the attention of local government officials and various consumer advocacy groups within Samal. The transition of power distribution services has been a deeply contentious issue for over a decade, with significant implications for service reliability, tariff structures, and overall energy security for the island's residents and businesses. The outcome of this legal and regulatory confrontation will likely set important precedents for franchise disputes and energy sector governance across the Philippines.
