THE Supreme Court En Banc, in its Resolution dated April 29, 2026, denied and dismissed the motion for reconsideration dated 5 March 2026, filed by Northern Davao Electric Cooperative, Inc. (Nordeco) to challenge the expansion of Davao Light and Power Company, Inc.'s (Davao Light) franchise under Republic Act No. 12144 and its implementation in areas previously serviced by Nordeco. The Supreme Court likewise denied and dismissed petitions filed by Nordeco in relation to the expropriation of Nordeco’s assets in the Island Garden City of Samal, Tagum City, and several municipalities of Davao del Norte.
The Resolution reaffirms the Court's earlier ruling that Congress may expand Davao Light's franchise to areas covered by another public utility's franchise. The Court also reiterated that a public utility franchise is a privilege granted by the State and does not give a utility an exclusive right to serve an area. Congress may also change, amend, or revoke a franchise when the common good requires it.
The Court found no violation of Nordeco's right to due process, noting that Congress extensively deliberated on the franchise expansion and that Nordeco was given opportunities to participate in the legislative process. The Court also ruled that the expansion of Davao Light's franchise did not violate Nordeco's existing contracts with its power suppliers.
The Court further affirmed that Davao Light may acquire, through expropriation, distribution assets that are reasonably necessary for the efficient maintenance and operation of electric service within its franchise area. This is subject to proper expropriation proceedings and the payment of just compensation as required by law.
In the same Resolution, the Court denied Nordeco's subsequent petition challenging the March 10, 2026 Order of Expropriation issued by the Regional Trial Court in Tagum City. It also dismissed Nordeco's subsequent petition questioning the orders and Writ of Possession issued by the Regional Trial Court in Panabo City.
Davao Light President and Chief Operating Officer Enriczar T. Tia said the Resolution provides further clarity on the legal challenges to Republic Act No. 12144 as Davao Light continues to carry out its responsibilities within its expanded franchise area.
"The Supreme Court's Resolution provides further clarity on the legal challenges to Republic Act No. 12144. As we move forward, our priority remains the same, to provide safe, reliable, and dependable electric service to the communities we serve. We will continue to perform our responsibilities in accordance with the law while working closely with government agencies, local government units, and other stakeholders to ensure that the transition is carried out in an orderly and responsible manner."
As Davao Light continues to implement Republic Act No. 12144, the Company will remain focused on strengthening the distribution system, improving service reliability, and ensuring that customers across its expanded franchise area receive safe and reliable electric service. Davao Light will likewise continue to carry out its responsibilities in accordance with the law and the directives of the appropriate government authorities.
- Davao Light
