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The long-simmering dispute over who should power the Island Garden City of Samal reached a decisive turning point in early 2026, when Davao Light and Power Company (Davao Light) formally assumed control of the island’s electricity distribution system. Backed by court orders and a newly expanded legislative franchise, the takeover has been framed by its proponents as a long-overdue step toward reliable electricity.
Yet for Northern Davao Electric Cooperative (Nordeco), the move represents something far more contentious: a forced displacement, still under legal challenge, with implications for franchise rights, rural electrification, and the balance between electric cooperatives and private distribution utilities.
A Turning Point in 2026
The most immediate trigger for the transition came in February 2026, when a regional trial court enforced a writ of possession granting Davao Light control over Samal’s distribution assets. The court order allowed the company to take over facilities previously operated by Nordeco, including poles and power lines.
This followed a landmark ruling by the Supreme Court upholding the constitutionality of Republic Act No. 12144, a law that expanded Davao Light’s franchise into areas long served by Nordeco.
Previously, Nordeco denounced the takeover as an irregular and legally questionable enforcement of the writ of possession, arguing that due process had been disregarded while key motions remained unresolved. It claimed the implementation of the Panabo court order was “totally illegal” in several respects, particularly as its motion for reconsideration was still pending.
The cooperative also clarified that the Supreme Court ruling, in its view, granted Davao Light only “operational responsibility” within the expanded franchise area—not full displacement of its authority. Maintaining that it remains the lawful franchise holder, Nordeco stressed that its mandate continues until 2028 on the mainland and 2033 in Samal.
Reaffirming its position, the cooperative urged the public to “stay alert and reiterates its dedication to transparency, legality, and consumer protection, stressing that any valid change in power service must be grounded in the law.”
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From Friction to Transition
The conflict between Davao Light and Nordeco unfolded over several years, shaped by mounting service concerns, legislative action, and legal contestation.
2023 to early 2024 saw growing dissatisfaction with Nordeco’s performance. Consumer complaints over frequent outages and high electricity costs intensified, prompting public officials to speak out. Davao del Norte Representative Pantaleon Alvarez described the service as “expensive, not reliable, and unreasonable,” reflecting wider frustration. Local leaders in Samal echoed these concerns, citing economic losses, while Senator Christopher Lawrence “Bong” Go warned that persistent outages were already undermining the island’s tourism potential.
From 2024 to 2025, the issue escalated into the legislative arena. Lawmakers introduced measures to expand Davao Light’s franchise into Nordeco-served areas, citing disparities in cost and reliability. Data presented in the Senate highlighted that Nordeco’s rates were about ₱3 to ₱4 higher per kWh, alongside significantly longer and more frequent outages.
Despite strong opposition from Nordeco, Republic Act 12144 lapsed into law in April 2025, formally enabling the expansion. The cooperative responded with legal challenges before the Supreme Court, maintaining that its franchise remained valid.
By mid-2025, public sentiment had become increasingly divided but largely leaned toward reform. Surveys indicated strong support for Davao Light’s entry, driven by long-standing service issues. At the same time, scrutiny of Nordeco intensified, including calls for investigations into major projects and mounting concerns over the economic toll of unreliable electricity on Samal’s tourism and local industries.
Late 2025 into early 2026 marked a defining phase. Nordeco faced further challenges, including suspension from the Wholesale Electricity Spot Market (WESM) due to unpaid obligations—an issue it disputed.
In December 2025, the Energy Regulatory Commission (ERC) granted Davao Light provisional authority to operate in the expanded franchise areas. This was followed by a court-issued writ of possession, allowing the company to take control of distribution assets in Samal.
By early 2026, the transition had effectively moved from policy to implementation, transforming a long-running dispute into a concrete shift in who powers the island.
Davao Light’s Initial Actions in Samal Following the Takeover
Even before Davao Light was granted legal authority to assume control of Nordeco’s distribution assets, Samal Mayor Lemuel Reyes had expressed confidence that the island would see stronger economic activity and renewed investor interest, with the transition expected to bring immediate relief to resorts and residents long burdened by unreliable power and high electricity costs.
“All resorts and residents will be happy. For instance, Discovery Samal has been relying on generator sets,” stated Reyes. “Now, their rates may even decrease because electricity costs will finally drop.”
After Davao Light received provisional approval to operate in the area through a Certificate of Public Convenience and Necessity (CPCN), it immediately set up customer-facing infrastructure in Samal, including a dedicated service center and a 24/7 hotline to address outages, billing concerns, and technical issues.
This is the justice we have fought for,” declared Davao del Norte Governor Edwin Jubahib. “Business owners and residents have long endured unstable services and high charges that could not meet the island’s demands. Our petitions to Congress and the Senate led to Republic Act 12144, and now that the Supreme Court has dismissed the TRO, Davao Light’s entry is official and legal.”
Additionally, Davao Light has begun preparing major infrastructure upgrades designed to permanently improve reliability on the island. Central to this is the planned submarine cable system linking Samal to the Davao mainland grid, which is expected to significantly reduce dependence on isolated and costly generation sources. Preparatory work for the cable installation has already been announced.
Nordeco had earlier pursued a ₱1.1 billion submarine cable project aimed at strengthening Samal’s power supply, including the installation of a new 69 kilovolt (kV) underwater line linking Pantukan to the island to address outages and rising demand. Although the project was slated for completion in the first quarter of 2023, the cable has yet to be established.
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Criticism and Concerns
Despite these arguments, the takeover has drawn significant criticism.
One major concern is the manner of implementation. Nordeco and its allies have described the enforcement of the writ of possession as abrupt and disruptive, triggering a temporary island-wide blackout.
The cooperative said the move disrupted its power supply agreement with Phil Power Ventures Corporation, its generation provider, citing a report that plant equipment was manually opened by personnel allegedly acting on Davao Light’s instructions.
It added that the action breached standard operating and safety protocols for switching procedures and led to financial losses. Nordeco maintained that its franchise remains valid until 2033 and vowed to continue safeguarding the interests of its member-consumer-owners and investments in rural electrification.
Meanwhile, Davao Light reaffirmed its authority to operate in Samal, urging Nordeco to refrain from circulating what it described as misleading claims amid the ongoing dispute.
In a March 9, 2026, statement, the utility emphasized that its mandate to serve consumers on the island is supported by established legal and regulatory bases.
Additionally, concerns have been raised about consumer protection. The Davao Consumer Movement (DCM) has called on residents to remain vigilant as the transition unfolds, highlighting the need for transparency in billing, service standards, and infrastructure investments.
“Since Davao Light’s takeover of Northern Davao Electric Cooperative’s (NORDECO) distribution assets in IGACOS, residents have grown increasingly frustrated with how the company has managed the transition,” DCM wrote. “Instead of improved service, they are experiencing longer brownouts and slower response times.”
DCM criticized Davao Light’s transition in Samal, citing poor communication, limited updates, and an inadequate hotline system that left residents uncertain. It described the rollout as disorganized and lacking transparency, saying it gave the impression the utility was unprepared for its expanded service area, despite acknowledging that transitions take time.
However, some consumers viewed the transition more positively, saying service changes naturally take time but noting a better customer experience under Davao Light. “They have never turned off comments on their FB page where as Nordeco often times did,” countered Beth Rubin Saad. “Davao Light customer service is exceptional with updates frequently. Nordeco remained quiet with no updates leaving the mass unsure. That is the difference between the two. Bravo to Davao Light.”
A Defining Moment for Power Sector Reform
Davao Light’s takeover of Samal marks a pivotal moment in the evolution of power distribution in Mindanao. Enabled by legislation, affirmed by the courts, and driven by long-standing concerns over reliability, the shift represents a bold attempt to modernize electricity service in a key growth area.
But the controversy surrounding it underscores the complexity of reform. Questions of legality, fairness, and public interest remain at the forefront, as Nordeco continues to contest the transition and stakeholders weigh its long-term implications.
In the end, the success of the takeover will not be measured solely by legal victories or infrastructure investments. It will depend on whether the promise at its core—reliable, accessible, and equitable electricity for the people of Samal—is ultimately fulfilled.
Sources:
https://www.sunstar.com.ph/davao/cong-alvarez-says-nordeco-must-discontinue-its-unreliable-service
https://opinion.inquirer.net/181574/a-power-sector-alphabet-soup
https://lawphil.net/statutes/repacts/ra2025/ra_12144_2025.html
https://www.sunstar.com.ph/davao/nordeco-challenges-davao-light-franchise-expansion-at-supreme-court
https://www.sunstar.com.ph/davao/nordeco-suspended-from-wesm
https://www.sunstar.com.ph/davao/davao-light-gets-green-light-to-connect-new-customers
https://www.sunstar.com.ph/davao/davao-light-slams-nordecos-misleading-claims-on-samal-power
