Davao Light Gears Up to Serve Expanded Franchise Area Despite NORDECO Resistance

Davao Light and Power Co. (DLPC) said it is ready to serve consumers in its expanded franchise area in Davao del Norte and parts of Davao de Oro, following the near completion of a major portion of new power lines in the municipality of Kapalong.

The expansion follows the enactment of Republic Act 12144, which extended DLPC’s franchise coverage to include new areas previously served by the Northern Davao Electric Cooperative (NORDECO).

“This is part of our preparation to serve customers in our expanded area in Davao del Norte. We look forward to getting approvals from regulatory agencies so we can finally connect households and establishments as soon as we can,” said DLPC President and COO Enriczar Tia.

New Lines To Extend Service Coverage

DLPC reported that most of the 12-kilometer overhead distribution line in Kapalong municipality has been completed. The company said Kapalong would likely be the first to connect to its system due to its proximity to Sto. Tomas, an area already within Davao Light’s service coverage.

Another new line is being planned from the National Grid Corporation of the Philippines (NGCP) substation in Maco, Davao de Oro, which will connect to Tagum City, the capital of Davao del Norte.

Lower Rates, Same Service Standard

Once the transition is finalized, customers in the expanded areas will pay the same rates as existing DLPC customers under the “one franchise, one rate” policy.

As of November 2025, DLPC’s overall residential rate stood at ₱10.06 per kilowatt-hour (kWh)—almost ₱3 lower than NORDECO’s ₱12.90/kWh. The difference means a typical household consuming 120 kWh a month would pay about ₱350 less under DLPC’s rate.

For December, DLPC announced a further rate reduction to ₱9.7135/kWh, while NORDECO has yet to release its updated rates. Tia said customers can expect not only lower rates but also “world-class service” once they are connected to the private utility’s grid.

NORDECO Opposition Continues

Despite the law mandating the transition, NORDECO has resisted DLPC’s takeover and filed a case questioning the legality of Republic Act 12144 before the courts.

In a statement, NORDECO said the takeover is “not proper, not right, and, above all, against the law.” It also asked the Department of the Interior and Local Government (DILG) to stop local officials, including Davao del Norte Governor Edwin Jubahib and former Samal Mayor Al David Uy, from publicly commenting on NORDECO’s performance, calling such remarks “beyond their expertise.”

NORDECO acting general manager Elvera Alngog reiterated the cooperative’s position in a letter to the Davao del Norte Provincial Board, saying it “would not cooperate with the transition process pending resolution of the petition filed before the Supreme Court.”

Awaiting Regulatory Approval

DLPC is still waiting for the Certificate of Public Convenience and Necessity (CPCN) from the Energy Regulatory Commission (ERC), which will officially authorize it to operate in the expanded areas.

The ERC conducted an online hearing on November 24 attended by local stakeholders and customers in Tagum City, where NORDECO’s lawyers formally expressed their opposition.

Tia said DLPC is prepared to invest in building its own power lines, substations, and poles if necessary, but acknowledged that doing so would take several years.

“We still hope that NORDECO will sit down and negotiate with us, particularly in the sale of their assets,” Tia said. “Their continued resistance is admittedly causing delays on our timeline. We are still praying for their cooperation.”

Issues Yet To Be Resolved

If NORDECO agrees to sell its existing assets, DLPC said it could immediately upgrade the infrastructure and begin serving the public sooner.

While the expansion is expected to bring lower electricity rates and improved reliability to parts of Davao del Norte and Davao de Oro, the transition remains stalled by legal and regulatory hurdles. 

For now, thousands of households await clarity on when, and under whose grid, their power service will finally improve.

Source:

https://www.sunstar.com.ph/davao/davao-light-readies-davao-del-norte-expansion

https://www.sunstar.com.ph/davao/nordeco-stands-firm-against-davao-light-entry

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