Supreme Court Upholds Davao Light Expansion Act, Nordeco Denounces Samal Takeover
The Supreme Court of the Philippines has firmly upheld the constitutionality of Republic Act No. 12144, known as the Davao Light Expansion Act. This landmark decision validates the law that expands the franchise of Davao Light and Power Company (Davao Light) into territories previously served by the Northern Davao Electric Cooperative (Nordeco). The court dismissed all petitions seeking to nullify the legislation, reinforcing the legal framework for the power distribution transition.
Nordeco Condemns Illegal Enforcement and Power Outage
On Thursday, February 26, 2026, Nordeco issued a strong statement denouncing the recent transfer of power distribution operations in the Island Garden City of Samal to Davao Light. The cooperative alleged that the enforcement of a court-issued writ of possession was unlawful and resulted in a temporary island-wide outage lasting 30 minutes. Nordeco declared, "The purported implementation of the Writ of Possession by the Sheriff and Local Government Officials was ILLEGAL."
The cooperative argued that this action interfered with its existing power supply agreement with Phil Power Ventures Corporation (PPVC), its generation provider. According to Nordeco, PPVC reported that personnel, allegedly acting under instructions from Davao Light officials, manually opened equipment at the plant using a hot stick, causing the power interruption. Nordeco maintained that this move violated standard operating and safety procedures for switching or shutdown operations, leading to financial losses for the cooperative.
Legal Disputes and Franchise Validity
Nordeco emphasized that its franchise in Samal remains valid until 2033 and that it will continue to protect the interests of its member-consumer-owners and public investments in rural electrification. The cooperative criticized the enforcement manner, stating, "What we saw yesterday was a MOB rule at the behest of DLPC and participated by political leaders promoting their 2028 political agenda, emblematic of a total disregard of the rule of law."
Nordeco further contended that certain court matters related to the writ were still pending resolution as of February 24, questioning the legality of the takeover process. The cooperative argued that the Supreme Court ruling merely granted operational authority within Davao Light's expanded franchise and did not extinguish Nordeco's rights as a franchise holder. Citing jurisprudence involving Iloilo Electric Cooperative and More Electric and Power Corporation, Nordeco asserted that overlapping utility franchises may legally coexist under the Constitution, as "A FRANCHISE IS NOT EXCLUSIVE."
Davao Light Assumes Control Amidst Controversy
Earlier, local officials formally welcomed Davao Light's assumption of Samal's distribution system following the writ of possession issued by a regional trial court in Panabo City. The transition includes control of distribution assets such as poles, lines, transformers, and related infrastructure under the Davao Light Expansion Act. Davao Light President Enriczar Tia stated that the Supreme Court ruling confirms the validity of the company's expanded franchise and does not establish any "parallel operation" between the two utilities, stressing that its authority to operate in the area is enforceable.
Despite this, Nordeco reiterated its call for vigilance and transparency, insisting it remains a lawful franchise holder and will continue to serve consumers while pursuing legal remedies. The cooperative vows to fight the takeover through all available legal channels, highlighting the ongoing tension between regulatory compliance and cooperative rights in the Philippine power sector.
