DAVAO Light and Power Company Inc. has taken control of four key substations in Davao del Norte, marking a major step in its planned expansion into Tagum City and nearby areas, a move expected to reshape power distribution and economic activity in the province.
The Aboitiz-led utility assumed control following the enforcement of a writ of possession issued by a Regional Trial Court in Tagum City. Acting on a February 27, 2026, ruling, a court sheriff facilitated the transfer on March 25.
Court-ordered takeover of key power assets
Davao Light took control of four substations through the enforcement of a writ of possession issued by the Regional Trial Court Branch 2 in Tagum City. Acting on a February 27, 2026, ruling, a court sheriff assumed possession of the facilities and transferred them to the company on March 25.
The assets include substations in Barangays Canocotan, Mirafuentes, and Apokon in Tagum City, and one in Asuncion, as well as Nordeco’s office in Tipaz, Magugpo, Tagum City.
Authorities served a Notice to Vacate on March 16, clearing 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 said.
The writ covers substation infrastructure but excludes distribution lines in Tagum City, highlighting the partial scope of the transition.
Aboitiz-backed expansion in Mindanao
Davao Light’s entry into Davao del Norte forms part of the expansion strategy of its parent firm, Aboitiz Power, to strengthen its distribution network in high-growth areas across Mindanao.
The acquisition of substations marks a key step in establishing operational control, as these facilities regulate and distribute electricity across local grids. Securing these assets positions the company to eventually manage a larger portion of the power supply chain, pending legal and regulatory approvals.
Davao Light said it plans to acquire additional Nordeco assets and integrate them into a more modern and efficient network.
Nordeco contests takeover, brings case to SC
The Northern Davao Electric Cooperative (Nordeco) said the dispute remains unresolved and has elevated the case to the Supreme Court, filing a petition for review and certiorari along with a request for a temporary restraining order.
“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, docketed as G.R. No. E-05431,” the cooperative said.
Nordeco said it continues to pursue all legal remedies to prevent disruptions in electricity service, particularly in Tagum City.
The cooperative also asserted that it retains its franchise until 2028 and remains the authorized distribution utility in its service areas. Citing Supreme Court jurisprudence, it added that distribution franchises are not exclusive and may allow multiple providers to operate.
Concerns over possible service disruptions
Nordeco warned of potential disruptions in areas dependent on the Asuncion substation, including New Corella, Talaingod, Kapalong in Davao del Norte, and Laak in Davao de Oro.
With the facility now under Davao Light’s control, the transition creates operational uncertainty. Any lack of coordination between the two utilities could affect power delivery.
Both Davao Light and Nordeco, however, said they aim to avoid service interruptions. Davao Light called for cooperation from Nordeco officials and personnel to ensure a smooth transition.
Operational challenges: aging assets, limited data
Davao Light faces operational challenges following the takeover, including aging substations that may require immediate rehabilitation or upgrades.
Company officials also cited limited access to operational data, such as load distribution, maintenance records, and system performance, which are critical for efficient grid management. The lack of complete data could slow the transition.
Despite these constraints, Davao Light said it is confident it can address the issues through technical upgrades and coordination in the coming months.
Billing transition pending
Davao Light said it has yet to assume control of distribution networks and is not currently issuing electricity bills in affected areas.
The company said billing will begin only after it secures legal authority over distribution assets. It will first conduct baseline meter readings to establish reference points for billing.
Consumers will receive advance notice on payment cut-off dates and the shift to a new billing system to ensure an orderly transition.
Power stability is seen to boost growth
Provincial leaders are closely monitoring the development for its economic impact. Davao del Norte Governor Edwin Jubahib said an improved and reliable power supply could attract investments and drive growth.
He said stable electricity is key for industries such as manufacturing, agribusiness, and digital services, allowing businesses to operate more efficiently.
Jubahib added that Davao Light’s entry could boost competitiveness, create jobs, and expand local enterprises, but stressed that the transition must be carefully managed to avoid disruptions to production and daily operations. DEF