THE Davao del Norte Electric Cooperative (Nordeco) has cautioned its member-consumers against transferring their electricity service to Davao Light and Power Co., (Davao Light) stressing that the latter’s authority to operate in parts of Davao del Norte and Davao de Oro remains provisional and subject to ongoing regulatory and legal proceedings.
In an advisory issued Tuesday, January 20, Nordeco reiterated that it continues to be the legitimate electric distribution utility serving the two provinces, amid increasing public inquiries following Davao Light’s move to accept applications for new power connections in areas traditionally served by the cooperative.
“Busa, giawhag ang atong mga pinanggang miyembro-konsumante-tag-iya sa padayon sa pagsuporta sa atong Nordeco,” the cooperative said.
“Dili magpadala sa mga haylo nga magpakonek sa Davao Light aron malikayan ang kasamok ug kahasol,” it added, warning that prematurely shifting to another power provider could result in service and billing complications for consumers.
Nordeco emphasized that the law expanding Davao Light’s franchise into its service areas has not yet attained finality, as it is currently under review by the Supreme Court.
“Ang balaud 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,” Nordeco said.
ERC role and CPCN process
At the center of the dispute is the application for a Certificate of Public Convenience and Necessity (CPCN), a regulatory requirement issued by the Energy Regulatory Commission (ERC) before a power distribution utility is allowed to fully operate in a given area.
The ERC is the government agency mandated to regulate the electric power industry in the Philippines. It oversees the approval of power rates, evaluates the entry and expansion of distribution utilities, and ensures that electric service providers comply with laws and protect consumer welfare. Any company seeking to operate or expand its electricity distribution services must secure a CPCN from the ERC.
A CPCN serves as official authorization certifying that a power provider’s operations are necessary, financially viable, and consistent with public interest. The approval process typically involves public hearings, the presentation of technical and financial capabilities, and commitments on service reliability, power rates, and system upgrades.
Nordeco pointed out that Davao Light’s CPCN application remains under evaluation and has not yet been granted final approval.
“Ug gani, sa milabayng hearing adtong Enero 13, 2026, Dili hingpit ug ligdong ang tubag sa Davao Light sa dihang gipangayuan sila og pasalig nga dili motaas ang taripa sa kuryente ug wala nay brownout kung mosulod na sila,” the cooperative said.
Provisional authority granted
Earlier, during an en banc meeting on December 12, the ERC granted Davao Light provisional authority (PA) related to its CPCN application.
Provisional authority allows a utility to begin limited operations while the full CPCN application is still undergoing hearings and evaluation.
Provisional authority does not constitute a final approval and may be revoked or modified depending on the outcome of the case.
Under the provisional authority and in line with Republic Act 12144, the ERC allowed Davao Light to start accepting applications and connecting customers in parts of Davao del Norte and Davao de Oro. Davao Light has since informed consumers that the ERC decision permits it to process new connection requests in the expanded franchise areas.
Despite this development, Nordeco maintained that the issue of jurisdiction and franchise overlap remains unresolved and said it will continue contesting Davao Light’s entry into the areas it currently serves.
Legislative and legal challenges
On December 22, 2025, lawmakers filed House Bill No. 7006 seeking to grant Nordeco a franchise to construct, establish, operate, and maintain electric distribution systems in Davao del Norte and Davao de Oro. The measure was authored by Apec Party-list Representative Sergio Dagooc and Philreca Representative Presley de Jesus.
The proposed franchise covers several municipalities in Davao de Oro—Compostela, Monkayo, New Bataan, Montevista, Maragusan, Nabunturan, Mawab, Laak, Maco, Mabini, and Pantukan—as well as the municipalities of Asuncion, New Corella, Kapalong, San Isidro, and Talaingod in Davao del Norte, including Tagum City.
Separately, in June 2025, Nordeco filed a petition for certiorari and prohibition before the Supreme Court, seeking to declare Republic Act 12144 unconstitutional. The cooperative is also asking the High Court to issue a temporary restraining order and a writ of preliminary injunction to stop the implementation of the law while the case is pending.
Republic Act 12144, which lapsed into law on April 6, 2025, formally expanded Davao Light’s franchise to include areas in Davao del Norte and Davao de Oro—territories long served by Nordeco.
Consumers slams Nordeco franchise bid
A consumer advocacy group has criticized the proposed renewal of the franchise of the Northern Davao Electric Cooperative (Nordeco), saying the move disregards widespread dissatisfaction among electricity consumers in Davao del Norte and Davao de Oro.
In a statement dated January 20, 2026, the Davao Consumers Movement described House Bill No. 7006 as “tone deaf” to public sentiment, citing mounting complaints over unreliable power supply and high electricity rates.
“The bill seeking to renew the franchise of the Northern Davao Electric Cooperative (Nordeco) is tone deaf to the overwhelming clamor of the people of Davao del Norte and Davao de Oro,” the group said.
The group said consumers have repeatedly raised concerns on social media regarding Nordeco’s service, arguing that these criticisms reflect real experiences rather than coordinated attacks.
“These are not trolls, they are real families and businesses struggling with unreliable service and rising costs,” it added.
According to the group, the impact of power issues has been especially severe for residents and entrepreneurs in the Island Garden City of Samal, where power disruptions have reportedly resulted in damaged appliances and business losses.
“These are everyday consequences of Nordeco’s failure to deliver dependable power,” the group said.
DCM also questioned the intent behind the filing of House Bill No. 7006 by Rep. Dagooc and Rep. de Jesus, saying the measure prioritizes the interests of electric cooperatives over consumers.
“After years of broken promises, asking the public to give Nordeco ‘another chance’ is an insult to households and businesses who have suffered enough,” the group said.
The group called on lawmakers from Davao del Norte and Davao de Oro to heed public sentiment and oppose the bill, emphasizing the need for affordable and reliable electricity services.
“What consumers want is simple: affordable, reliable power services that support households and livelihoods. Anything less is unacceptable,” it said. DEF