THE Energy Regulatory Commission (ERC) said Davao Light and Power Co. is authorized to begin operations in its expanded franchise areas after the commission granted the utility provisional authority, countering claims by the Northern Davao Electric Cooperative (Nordeco) that Davao Light’s mandate remains uncertain.
At the center of the dispute is Davao Light’s application for a Certificate of Public Convenience and Necessity (CPCN), the permit required for electric utilities to fully operate in a service area. The ERC regulates power rates and utility expansion to ensure reliable service and protect consumers.
While the CPCN process involves public hearings and technical and financial evaluations, Nordeco has argued that Davao Light’s application remains under review and has yet to receive final approval.
In an en banc meeting on Dec. 12, 2025, the ERC granted Davao Light provisional authority, allowing the company to begin limited operations while its CPCN application undergoes full evaluation.
“ERC granted provisional CPCN to Davao Light so they can already start operating in the area (where) they have already constructed the distribution system,” ERC legal services director III lawyer Ma. Corazon C. Fines said during the meeting.
Under the provisional authority and in line with Republic Act 12144, Davao Light may install power lines, accept consumers, and process new connection applications in parts of Davao del Norte and Davao de Oro.
The ERC stressed that the provisional authority does not amount to final approval and may be modified or revoked depending on the outcome of the ongoing proceedings.
Nordeco stance
Nordeco earlier advised its member-consumers not to transfer to Davao Light, saying the company’s authority to operate in Davao del Norte and Davao de Oro remains provisional and subject to regulatory and legal challenges.
In an advisory issued Jan. 20, Nordeco said it remains the legitimate distribution utility in the two provinces, citing the pending review of Republic Act 12144 before the Supreme Court.
“Ang balaod sa pag-expand sa Davao Light ngadto sa Nordeco franchise area, dili pa final kay gipasaka pa sa Supreme Court ang pag-question sa maong bala-udnon (The law expanding Davao Light’s operations into Nordeco’s franchise area is not yet final because its validity has been questioned before the Supreme Court),” Nordeco said.
Legal challenges
Republic Act 12144, which lapsed into law on April 6, 2025, expanded Davao Light’s franchise to areas traditionally served by Nordeco. In June 2025, Nordeco filed a petition before the Supreme Court seeking to declare the law unconstitutional and to stop its implementation through a temporary restraining order.
Separately, lawmakers filed House Bill No. 7006 on Dec. 22, 2025, proposing a separate franchise for Nordeco to operate electric distribution systems in Davao del Norte and Davao de Oro.
Power rates draw attention
As the franchise dispute continues, electricity rates in the region have also drawn public attention.
Davao Light’s residential rate rose to P11.72 per kilowatt-hour for the Jan. 11 to Feb. 10, 2026 billing period, up about P2.01 per kWh from December 2025. The utility attributed the increase mainly to higher generation costs from the Wholesale Electricity Spot Market and the implementation of the Green Energy Auction Allowance, partly offset by lower feed-in tariff charges.
Meanwhile, Nordeco posted the highest residential power rate in the Davao Region in January 2026.
The Davao Consumer Movement said Nordeco’s residential rate climbed to P14.81 per kWh from P12.70 per kWh in December, based on collected electric bills. Nordeco has yet to release its official January rate. Consumer groups said higher generation charges and elevated spot market prices likely drove the increase. DEF