A MAJOR shift in Northern Mindanao’s power distribution landscape is underway as Davao Light and Power Company, Inc. (Davao Light) moves to expand its operational footprint in Davao del Norte, signaling potential changes in energy reliability, investment climate, and regional economic activity.
The Aboitiz-led utility has officially taken control of four key substations previously operated by the Northern Davao Electric Cooperative (Nordeco), marking a decisive step in its planned entry into Tagum City and nearby areas. The development is expected to have far-reaching implications not only for electricity service delivery but also for business confidence and infrastructure development in the province.
Court-enforced transfer of key power assets
The takeover was implemented through the enforcement of a writ of possession issued by the Regional Trial Court (RTC) Branch 2 in Tagum City. Acting on a February 27, 2026 ruling, the court sheriff formally assumed possession of the facilities and facilitated their transfer to Davao Light on March 25.
The assets covered by the writ include three substations located in Barangays Canocotan, Mirafuentes, and Apokon in Tagum City, as well as one substation in the Municipality of Asuncion. Also included in the transfer is Nordeco’s office in Tipaz, Magugpo, Tagum City.
A Notice to Vacate was served earlier on March 16, 2026, clearing the way for the formal 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,” part of the notice read.
While the writ grants control over critical substation infrastructure, it does not include the distribution lines serving Tagum City, an important limitation that underscores the partial nature of the transition.
Strategic expansion
Davao Light’s entry into Davao del Norte aligns with the broader strategy of its parent firm, Aboitiz Power, to expand its distribution network and strengthen its presence in high-growth areas across Mindanao.
The acquisition of substations represents a foundational step in establishing operational control, as substations serve as key nodes that regulate and distribute electricity across local grids. Securing these assets positions Davao Light to eventually manage a larger portion of the power supply chain, pending further legal and regulatory developments.
The company has reiterated its intention to acquire additional Nordeco assets and integrate them into a more modernized and efficient network.
Nordeco challenges move, elevates case to Supreme Court
Despite the legal hurdles, Nordeco maintains that the dispute is ongoing and far from resolved. The cooperative confirmed that it has filed a Petition for Review and Certiorari before the Supreme Court, along with a request for a temporary restraining order.
“Nordeco informs our valued member-consumer-owners (MCOs) that it is NOT FINAL as our Electric Cooperative has filed before the Supreme Court the Petition for Review and Certiorari and Issuance of Temporary Restraining Order, docketed as G.R. No. E-05431 on the issued Writ,” Nordeco’s statement said.
The cooperative emphasized that it continues to exhaust all legal remedies available under the law to prevent disruptions to electricity service, particularly in Tagum City.
It also asserted that it retains its franchise until 2028, maintaining its status as the authorized distribution utility in its franchise areas. Citing Supreme Court jurisprudence, Nordeco argued that monopoly over distribution franchises is not absolute and that multiple providers may legally coexist.
Risk of Service Disruptions in Connected Areas
A key concern raised by Nordeco involves the potential impact on municipalities that depend on the Asuncion substation. These include New Corella, Talaingod, Kapalong in Davao del Norte, and Laak in Davao de Oro.
Because these areas source their electricity from a facility now under Davao Light’s control, the transition introduces operational uncertainty. Any misalignment in coordination between the two entities could affect power delivery.
However, both Davao Light and Nordeco have indicated a shared interest in preventing service interruptions. Davao Light, in particular, has called for cooperation from Nordeco officials and personnel to ensure a smooth and orderly transition.
Operational Hurdles: Aging Infrastructure and Data Limitations
Beyond the legal dispute, Davao Light is also confronting practical challenges associated with the takeover. Company officials disclosed that some of the acquired substations are aging and may require immediate rehabilitation or upgrading.
Another critical issue is the limited availability of operational data, which is essential for efficient grid management. Without comprehensive records on load distribution, maintenance history, and system performance, the transition process becomes more complex and potentially slower.
Despite these constraints, Davao Light expressed confidence in its ability to address the issues through technical upgrades and coordination efforts in the coming months.
Billing Transition Yet to Begin
For consumers, one of the most immediate concerns is billing. Davao Light clarified that it has not yet assumed control over distribution networks, meaning it is not currently responsible for issuing electricity bills in the affected areas.
According to company officials, billing will only commence once legal authority over distribution assets is secured. At that point, Davao Light will conduct a baseline meter reading to establish a reference for future billing cycles.
Consumers are expected to receive advance notice regarding payment cut-off dates and the transition to a new billing system, helping to ensure a clear and orderly shift.
Economic Upside: Power Stability as Growth Driver
Provincial leaders are closely watching the development for its economic implications. Davao del Norte Governor Edwin Jubahib underscored the potential of improved electricity services to unlock new growth opportunities.
Stable and reliable power supply is a critical factor in attracting investments, particularly in manufacturing, agribusiness, and digital industries with consistent services tend to experience higher levels of business activity, as companies are able to operate more efficiently and with fewer disruptions.
Jubahib noted that Davao Light’s entry could enhance the province’s competitiveness, potentially leading to increased investments, job creation, and expansion of local enterprises.
At the same time, the governor acknowledged that the transition phase must be carefully managed to avoid short-term economic setbacks. Any interruption in power supply could affect production, supply chains, and daily business operations.
A Transition with High Stakes for the Region
The takeover of the four substations marks a critical but incomplete phase in a broader restructuring of power distribution in Davao del Norte. With legal proceedings still pending before the Supreme Court and operational integration yet to be finalized, the situation remains fluid.
For businesses and investors, the outcome of this transition will be closely tied to the reliability and cost of electricity in the province. For consumers, it raises questions about service quality, billing, and long-term provider stability. DEF