THE Northern Davao Electric Cooperative (Nordeco) has answered Davao Light and Power Company (Davao Light)’s claims about its authority to operate as the sole electricity distributor in the Island Garden City of Samal (Igacos), describing the utility’s assertions as misleading and premature while legal proceedings remain unresolved.
In a press statement issued March 10, 2026, Nordeco disputed several claims published by Davao Light on its official social media page a day earlier, particularly the assertion that the company’s mandate to distribute electricity in Samal has already been firmly established.
Davao Light earlier cited Republic Act No. 12144, which expanded its franchise area, and a unanimous ruling by the Supreme Court of the Philippines upholding the constitutionality of the law, as the basis for its authority.
Nordeco, however, said the case has not yet reached finality.
“There is no finality yet with the Decision of the Supreme Court pending its Resolution to the Motion for Reconsideration filed by Nordeco on March 5, 2026,” the cooperative said.
The electric cooperative also maintained that its franchise remains valid and may coexist with that of Davao Light under Section 11, Article XII of the 1987 Constitution, as interpreted in previous jurisprudence involving the Iloilo electric cooperatives and MORE Electric and Power Corporation.
The dispute is part of a long-running legal and regulatory battle over power distribution rights in Samal, which falls under the franchise area historically served by Nordeco in Davao del Norte.
Nordeco also challenged Davao Light’s claim that a writ of possession issued by the Regional Trial Court covers all distribution assets in the island city.
According to the cooperative, the court order is still subject to several unresolved motions it filed as of February 24, 2026, and only applies to distribution line assets in 26 of the city’s 46 barangays, based on the annexes submitted by Davao Light in its petition.
The cooperative likewise questioned the legal effect of the Provisional Certificate of Public Convenience and Necessity (CPCN) issued by the Energy Regulatory Commission (ERC) that allows Davao Light to begin serving parts of Davao del Norte, including Samal, and Davao de Oro.
Nordeco argued that the authority granted by the ERC is conditional and dependent on the establishment of Davao Light’s own distribution infrastructure. It added that the provisional certificate remains subject to specific requirements and ongoing regulatory hearings, meaning it is not yet final and executory.
The cooperative also disputed Davao Light’s announcement of an exclusive power supply arrangement with Phil-Power Ventures, which the utility said took effect on February 25 and covers electricity generation intended for distribution in Samal.
The cooperative also claimed the agreement violates provisions of Republic Act 12144, particularly Section 21-A on the transition of operations between the existing distribution utility and the new franchise holder.
Under the law, the cooperative argued, it is still authorized to operate the current distribution system and implement its existing supply agreements with power generation companies until the new franchise holder establishes its own distribution network and fully assumes operations.
“Nordeco is not spreading misleading information. We do not want the conflict, which occurred around 14 years ago, to happen again where the member-consumer-owners (MCOs) are at the losing end,” the cooperative said.
The dispute between the two utilities has drawn attention from local government officials and consumer groups in Samal, where the transition of power distribution services has been a contentious issue for more than a decade. DEF