THE Supreme Court of the Philippines has upheld the constitutionality of Republic Act No. 12144, affirming the validity of the Davao Light Expansion Act and dismissing petitions that sought to nullify the law expanding the franchise of Davao Light and Power Company (Davao Light) into areas previously served by Northern Davao Electric Cooperative (Nordeco).
In a Notice of Resolution dated January 14, 2026, under G.R. Nos. 280275 and 280734, the High Court ruled that the title of RA 12144 complies with Section 26(1), Article VI of the Constitution, which requires that a law embrace only one subject that must be expressed in its title.
Petitioners had argued that the measure’s title failed to reflect provisions affecting Nordeco’s existing franchise, including asset valuation, escrow arrangements, and the possible imposition of surcharges.
The High Court disagreed, explaining that the law’s title sufficiently states its general subject, the expansion of Davao Light’s franchise area, and is not required to serve as a detailed index of all its consequences.
“All told, the title of Republic Act No. 12144 conforms with Section 26(1), Article VI of the Constitution,” the Court declared.
“FOR THESE REASONS, the Petitions are DISMISSED.”
The resolution also noted Nordeco’s supplemental petition and application for a temporary restraining order (TRO). With the dismissal of the consolidated petitions, the TRO bid was effectively denied, clearing the path for the law’s implementation.
Franchise dispute
Republic Act No. 12144, which lapsed into law in April 2025, amended Davao Light’s legislative franchise to include Tagum City, the Island Garden City of Samal, and several municipalities in Davao del Norte and Davao de Oro, territories that had long been under Nordeco’s distribution coverage.
The passage of the law followed years of public debate over electricity reliability in parts of northern Davao.
Various local government officials, business groups, and consumer advocates had raised concerns over recurring outages and the need for stronger capital investments in distribution infrastructure. Proponents of the expansion argued that Davao Light, backed by the Aboitiz group, possesses the financial capacity and technical resources to modernize facilities and improve service quality.
Nordeco, however, challenged the law before the Supreme Court, asserting that it undermined its existing franchise rights and raised constitutional and due process concerns. The cooperative maintained that the expansion encroached on its service territory and would affect its assets and contractual obligations.
Regulatory developments during litigation
While the legal dispute was pending, regulators and Davao Light moved forward with preparatory measures.
In December 2025, the Energy Regulatory Commission (ERC) granted provisional authority for Davao Light to begin connecting customers in the newly expanded franchise areas under RA 12144. The provisional authority allowed the company to start accepting applications and preparing distribution facilities in affected municipalities.
However, Davao Light clarified in public statements that full implementation of the expansion depends on negotiations with Nordeco regarding asset valuation and transfer arrangements. The transition process is expected to involve regulatory oversight to ensure continuity of service and fair compensation mechanisms consistent with the law.
The ERC’s provisional approval signaled regulatory recognition of the law’s enforceability even as the constitutional challenge was being resolved.
Consumer groups react
Following the Supreme Court’s ruling, the Davao Consumers Movement issued a statement expressing support for the decision.
“Consumers in Davao del Norte and Davao de Oro welcome the Supreme Court’s recent decision upholding the validity of Republic Act 12144,” the group said.
“With the Highest Court dismissing Nordeco’s petition to shoot down RA 12144, the door is now open to a future where consumers can expect more stable power, with world-class service at a more affordable rate,” the group added.
The group described the decision as a turning point that prioritizes consumer welfare and opens the possibility of improved service standards. Advocates have long framed the issue as one of reliability, modernization, and accountability in power distribution.
Nordeco releases statement
Meanwhile, on February 21, Nordeco released a statement reiterating its position to “continue delivering sincere and dedicated service” to its “entire franchise area” granted to it until 2028 for the mainland and 2033 for the Island Garden City of Samal.
“Sa bag-uhay lang nga gipagawas nga desisyon sa Korte Suprema kabahin sa gi-file nga Petition for Certiorari sa Nordeco, padayon gihapon nga makaserbisyo ang atong Electric Cooperative (EC) sa tibuok franchise area subay sa prangkisa nga gihatag niini hangtud tuig 2028 sa Mainland ug 2033 sa Island Garden City of Samal (Igacos), samtang gitugutan ang Davao Light and Power Company nga mo-operate sa prangkisa sa Nordeco subay sa gilagda nga mga requisitos sa balaud,” Nordeco stated.
(In the recently released decision of the Supreme Court regarding the Petition for Certiorari filed by Nordeco, our Electric Cooperative (EC) will continue to serve its entire franchise area in accordance with the franchise granted to it until 2028 for the Mainland and 2033 for the Island Garden City of Samal (Igacos), while Davao Light and Power Company is allowed to operate within Nordeco’s franchise area subject to the requirements set by law.)
The electric cooperative emphasized that its franchise was not revoked, yet in fact, its existence was recognized, citing similarities in the operation of Iloilo I, II, and III electric cooperatives and MORE Power within a single franchise area.
Economic and infrastructural implications
Energy analysts note that the Davao region’s economic growth, driven by agribusiness, commerce, and urban expansion requires dependable electricity supply to attract investments and sustain industrial activity.
The inclusion of Tagum City and other municipalities under Davao Light’s franchise is expected to promote infrastructure upgrades, including new substations, feeder lines, and digital monitoring systems.
Davao Light has previously announced plans for capital-intensive improvements in areas covered by the expansion law, subject to regulatory approval and asset turnover processes. DEF