Nordeco Issues Advisory Against Davao Light Service Transfers
The Davao del Norte Electric Cooperative (Nordeco) has issued a strong advisory to its member-consumers, urging them to refrain from transferring their electricity service to Davao Light and Power Co. (Davao Light). The cooperative emphasized that Davao Light's authority to operate in specific areas of Davao del Norte and Davao de Oro remains provisional and is subject to ongoing regulatory and legal proceedings.
Legitimacy and Legal Status in Question
In an advisory released on Tuesday, January 20, Nordeco reiterated its position as the legitimate electric distribution utility serving the two provinces. This statement comes amid increasing public inquiries following Davao Light's move to accept applications for new power connections in territories traditionally served by the cooperative.
"Busa, giawhag ang atong mga pinanggang miyembro-konsumante-tag-iya sa padayon sa pagsuporta sa atong Nordeco," the cooperative declared in its advisory. "Dili magpadala sa mga haylo nga magpakonek sa Davao Light aron malikayan ang kasamok ug kahasol," it added, warning consumers that prematurely shifting to another power provider could lead to significant service disruptions and billing complications.
Nordeco stressed that the law expanding Davao Light's franchise into its service areas has not yet achieved finality. The cooperative highlighted that this legislation is currently under review by the Supreme Court, creating uncertainty about the legal standing of the expansion.
ERC's Role and CPCN Process Explained
At the heart of this dispute lies the application for a Certificate of Public Convenience and Necessity (CPCN), a crucial regulatory requirement issued by the Energy Regulatory Commission (ERC). This certificate must be obtained before any power distribution utility can fully operate in a designated area.
The ERC serves as the government agency mandated to regulate the electric power industry throughout the Philippines. Its responsibilities include overseeing power rate approvals, evaluating the entry and expansion of distribution utilities, and ensuring that electric service providers comply with existing laws while protecting consumer welfare. Any company seeking to operate or expand its electricity distribution services must secure this CPCN from the ERC.
A CPCN functions as official authorization certifying that a power provider's operations are necessary, financially viable, and consistent with public interest. The approval process typically involves comprehensive public hearings, detailed presentations of technical and financial capabilities, and firm commitments regarding service reliability, power rates, and system upgrades.
Nordeco pointed out that Davao Light's CPCN application remains under evaluation and has not yet received final approval. "Ug gani, sa milabayng hearing adtong Enero 13, 2026, Dili hingpit ug ligdong ang tubag sa Davao Light sa dihang gipangayuan sila og pasalig nga dili motaas ang taripa sa kuryente ug wala nay brownout kung mosulod na sila," the cooperative stated, questioning Davao Light's assurances about maintaining stable rates and preventing power outages.
Provisional Authority and Its Limitations
Earlier developments saw the ERC grant Davao Light provisional authority (PA) related to its CPCN application during an en banc meeting on December 12. This provisional authority allows a utility to begin limited operations while the full CPCN application continues undergoing hearings and evaluation.
It is crucial to understand that provisional authority does not constitute final approval and may be revoked or modified depending on the outcome of the case. Under this provisional authority and in accordance with Republic Act 12144, the ERC permitted Davao Light to start accepting applications and connecting customers in specific parts of Davao del Norte and Davao de Oro.
Davao Light has since informed consumers that the ERC decision allows it to process new connection requests in the expanded franchise areas. Despite this development, Nordeco maintains that the issue of jurisdiction and franchise overlap remains unresolved. The cooperative has declared its intention to continue contesting Davao Light's entry into the areas it currently serves.
Legislative and Legal Challenges Intensify
On December 22, 2025, lawmakers filed House Bill No. 7006 seeking to grant Nordeco a franchise to construct, establish, operate, and maintain electric distribution systems in Davao del Norte and Davao de Oro. The measure was authored by Apec Party-list Representative Sergio Dagooc and Philreca Representative Presley de Jesus.
The proposed franchise covers several municipalities in Davao de Oro, including:
- Compostela
- Monkayo
- New Bataan
- Montevista
- Maragusan
- Nabunturan
- Mawab
- Laak
- Maco
- Mabini
- Pantukan
It also includes municipalities in Davao del Norte:
- Asuncion
- New Corella
- Kapalong
- San Isidro
- Talaingod
- Tagum City
Separately, in June 2025, Nordeco filed a petition for certiorari and prohibition before the Supreme Court, seeking to declare Republic Act 12144 unconstitutional. The cooperative is also asking the High Court to issue a temporary restraining order and a writ of preliminary injunction to stop the implementation of the law while the case remains pending.
Republic Act 12144, which lapsed into law on April 6, 2025, formally expanded Davao Light's franchise to include areas in Davao del Norte and Davao de Oro—territories that have long been served by Nordeco.
Consumer Advocacy Group Criticizes Nordeco Franchise Bid
A consumer advocacy group has strongly criticized the proposed renewal of Nordeco's franchise, arguing that the move disregards widespread dissatisfaction among electricity consumers in Davao del Norte and Davao de Oro.
In a statement dated January 20, 2026, the Davao Consumers Movement described House Bill No. 7006 as "tone deaf" to public sentiment, citing mounting complaints over unreliable power supply and high electricity rates. "The bill seeking to renew the franchise of the Northern Davao Electric Cooperative (Nordeco) is tone deaf to the overwhelming clamor of the people of Davao del Norte and Davao de Oro," the group stated.
The group emphasized that consumers have repeatedly raised concerns on social media regarding Nordeco's service, arguing that these criticisms reflect genuine experiences rather than coordinated attacks. "These are not trolls, they are real families and businesses struggling with unreliable service and rising costs," it added.
According to the group, the impact of power issues has been particularly severe for residents and entrepreneurs in the Island Garden City of Samal, where power disruptions have reportedly resulted in damaged appliances and significant business losses. "These are everyday consequences of Nordeco's failure to deliver dependable power," the group asserted.
DCM also questioned the intent behind the filing of House Bill No. 7006 by Representatives Dagooc and de Jesus, suggesting that the measure prioritizes the interests of electric cooperatives over those of consumers. "After years of broken promises, asking the public to give Nordeco 'another chance' is an insult to households and businesses who have suffered enough," the group declared.
The group called on lawmakers from Davao del Norte and Davao de Oro to heed public sentiment and oppose the bill, emphasizing the fundamental need for affordable and reliable electricity services. "What consumers want is simple: affordable, reliable power services that support households and livelihoods. Anything less is unacceptable," it concluded.
