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Business leaders and local officials are expressing optimism as Davao Light and Power Company, Inc. (Davao Light) formally begins its transition to take over electricity distribution in parts of Tagum, Davao del Norte and Davao de Oro, a shift expected to stabilize power supply and attract more investors to the region.
The transition stems from Republic Act No. 12144, which took effect in April 2025, transferring the electric franchise areas of Tagum City and the Island Garden City of Samal from the Northern Davao Electric Cooperative (Nordeco) to Davao Light, a subsidiary of the AboitizPower group.
Brighter, More Empowered Future
Davao Light marked an important milestone back on July 8, 2025, with the installation of its first electric pole in Tagum City, coinciding with the inauguration of its 22-MVA Digital Substation and Warehouse Facilities. The company said these facilities would anchor a modernized, more reliable power distribution network to support Tagum’s growing business and residential demand.
“With the enactment of Republic Act 12144, we are thrilled to bring the same commitment, expertise, and service to our new customers,” said Engr. Enriczar T. Tia, Davao Light president and COO. “Together, we are not just bringing electricity; we are bringing a partnership for progress and sustainability, a commitment to innovation and safety, and a brighter, more empowered future for every individual we serve.”
Positive Economic Impact
During the Tagum City Chamber of Commerce and Industry, Inc. (TCCCII) annual meeting on December 7, 2025, local entrepreneurs expressed support for Davao Light’s entry, describing it as a crucial step toward long-term economic growth.
“Stable, affordable electricity is important considering that it greatly affects our operations. Stable electricity means stable operations, while affordable electricity means competitive prices in products and services,” said Engr. Sean Gellangarin, TCCCII president.
Gellangarin added that Tagum’s business community sees the transition as an opportunity to “finally tap the province’s true potential,” which he said had long been constrained by unreliable and costly power supply.
Legal Challenges Ahead
Despite a pending legal petition from Nordeco, Davao Light has moved forward with preparations for service expansion. Arnel Bersabe, Davao Light’s general manager for the Northern Franchise Area, said the company had already applied for a Certificate of Public Convenience and Necessity (CPCN) with the Energy Regulatory Commission (ERC), which is a prerequisite for officially operating in the new franchise areas.
“No temporary restraining order has been issued. So, in the absence of a TRO, the law is deemed valid and regular. That is why we are starting with the transition,” Bersabe said.
The company aims to connect Samal Island and Kapalong to its network by the first half of 2026.
For Tagum City, however, Bersabe noted that a new line must be built from the National Grid Corporation of the Philippines (NGCP) substation in Maco, Davao de Oro, since the existing high-voltage line is already operating at near capacity.
“Unfortunately, wala nisugot si NGCP (NGCP did not allow a connection). The reason is 99% loaded ang (Maco–Tagum City) line,” he explained, adding that Davao Light is now constructing a second line to ensure adequate capacity.
Transition Still Underway
As Davao Light proceeds with its expansion under RA 12144, stakeholders across the public and private sectors expect improved reliability, competitive pricing, and greater investor confidence to follow. For Tagum’s business community, the transition represents more than just a change in provider, as it signals a long-awaited promise of energy stability and economic momentum for Davao del Norte and Davao de Oro.
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