THE Northern Davao Electric Cooperative, Inc. (Nordeco) stood firm in its declaration early this week that it remains the legitimate electric distribution utility for Davao del Norte, Davao de Oro, and the Island Garden City of Samal (Igacos), directly challenging the encroachment of Davao Light and Power Company (DLPC) within its franchise area.
Nordeco rejects rival’s claims
In its latest statement, the cooperative strongly condemned Davao Light’s assertion of authority, describing the rival company’s operations as “illegal” in areas covered by its franchise. According to Nordeco, Davao Light lacks valid legal standing to take over or manage Nordeco’s service area, and any such claim is “not proper, not right, and, above all, against the law.”
The cooperative reiterated that its authority derives from its existing franchise rights and that it will continue to defend these rights vigorously.
“Kini gihapon ang lehitimong electric distribution utility nga gitugotan sa balaod ug nag-operate sa mga probinsya sa Davao del Norte ug Davao de Oro, lakip na ang Island Garden City of Samal (Igacos),” Nordeco Acting General Manager Elvera Alngog said.
[This remains the legitimate electric distribution utility authorized by law and operating in the provinces of Davao del Norte and Davao de Oro, including the Island Garden City of Samal (Igacos)].
The official also stressed that only the Supreme Court has the jurisdiction to decide on the matter, citing Nordeco’s ongoing petition for Certiorari and Prohibition challenging Republic Act 12144.
The cooperative maintains that until the High Court issues a ruling, any actions by Davao Light to operate in Nordeco’s territory remain legally premature.
Operations continue under protest
Despite the legal dispute, Nordeco clarified that it continues to “cooperate” with Davao Light’s limited operational activities, meter reading, billing, payment collection, and setting up of customer service points in places like Tagum and Igacos.
Nordeco explained that this partnership is not an admission of surrender but a pragmatic step to avoid service disruption while the court decides their fate.
Alngog reiterated the cooperative’s commitment to its member-consumer-owners, promising uninterrupted service "until the Supreme Court speaks." She affirmed Nordeco’s resolve to maintain its operations and protect its franchise, asserting that it remains the legal distribution utility in the contested areas.
Legal fight intensifies
Nordeco has not shied away from its legal challenge. The cooperative has publicly warned that RA 12144, which expanded Davao Light’s franchise to include several of Nordeco’s territories, violates its constitutionally-protected rights under Presidential Decree 269, the Electric Power Industry Reform Act (Epira), and the NEA Reform Act.
Earlier this year, Nordeco filed its petition before the Supreme Court, arguing that the law’s implementation would undermine its rights without due process. The cooperative has also initiated a renewal of its existing franchise, which is valid until 2028 in the mainland and 2033 in Igacos, to ensure continuity regardless of the outcome of the legal battle.
Recent moves by Davao Light
On its part, Davao Light has defended its entry into the disputed service areas as a “partnership,” not a takeover.
Company executives said their goal is to collaborate with Nordeco, retain its employees, and prioritize local suppliers once the transition proceeds.
Meanwhile, Davao Light announced a P1 billion investment plan to acquire Nordeco’s assets in Davao del Norte and Davao de Oro. This is part of its efforts to upgrade and modernize the power distribution system in the newly covered areas.
Implications and the road ahead
The standoff between Nordeco and Davao Light underscores a broader tension between cooperative rural electrification and private utility expansion. For Nordeco, the issue is about preserving its franchise and the rights of its member-consumer-owners. For Davao Light, the move could mean greater scale, more modern infrastructure, effective and efficient service, and potentially lower rates for consumers if its takeover proceeds.
The long-running conflict between the two energy providers has reached a critical juncture in 2025, marked by legal maneuvers, legislative chess plays, and a fraught transition, one that has profound implications for the electricity consumers of Davao del Norte, Davao de Oro, and Igacos.
RA 12144 and the legal counterattack
In early 2025, the crisis escalated dramatically when Republic Act No. 12144 lapsed into law on April 6. This law expanded Davao Light’s franchise area to include key parts of Davao del Norte and Davao de Oro — namely, Tagum City, IGaCOS, and multiple municipalities in both provinces.
Nordeco immediately branded the measure “unconstitutional,” arguing that it violated non-impairment of contracts, due process, and its existing franchise agreements under Epira and NEA rules.
Shortly after the law took effect, Nordeco filed a Petition for Certiorari and Prohibition before the Supreme Court, seeking to block the implementation of RA 12144. The cooperative argued that any takeover would be premature while the petition remains unresolved, thereby warning that the transition of power distribution rights remains legally unsettled. DEF