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Aboitiz-led Davao Light and Power Company (DLPC) has taken over critical electricity infrastructure in Davao del Norte following the enforcement of a writ of possession issued by the Regional Trial Court in Tagum City.
The court order, dated February 27, 2026, authorized DLPC to acquire selected assets of the Northern Davao Electric Cooperative (Nordeco). The turnover was carried out on March 25 by a court-appointed sheriff, covering four substations, three located in Tagum City (Barangays Canocotan, Mirafuentes, and Apokon) and one in the municipality of Asuncion, along with Nordeco’s office in Magugpo.
The move is aligned with Republic Act No. 12144, which expanded DLPC’s franchise to include areas in Davao del Norte and Davao de Oro, enabling the company to begin preparations for full-scale operations in these growth corridors.
“These developments are part of preparations to deliver more reliable and efficient electricity service to residents and businesses,” the company said, emphasizing that the substations are central to stabilizing and distributing power across local grids.
Partial Control
While the acquisition marks a significant milestone, DLPC’s control remains limited to substation infrastructure. Distribution lines in Tagum City and surrounding areas are not yet under its authority, underscoring the phased nature of the transition.
DLPC said it intends to acquire additional Nordeco assets and integrate them into a modernized network, positioning itself to manage a larger share of the region’s electricity supply chain once regulatory and legal requirements are met.
The company also clarified that it has not begun billing customers in affected areas. Electricity billing will only commence once it gains legal control over distribution systems and completes baseline meter readings to ensure accuracy during the transition.
Legal Dispute
Despite the court-backed turnover, Nordeco maintains that the case is far from settled. The cooperative has elevated the dispute to the Supreme Court, filing a petition for review and certiorari along with a request for a temporary restraining order.
Nordeco asserted that it remains the authorized distribution utility in its franchise area until 2028 and warned of possible service disruptions, particularly in areas dependent on the Asuncion substation, including New Corella, Talaingod, Kapalong, and parts of Davao de Oro.
The cooperative also argued that power distribution franchises are not exclusive, suggesting that overlapping operations may be legally permissible.
This unresolved legal battle introduces uncertainty into the transition, raising concerns about coordination between the two utilities and the potential impact on power delivery.
Operational Hurdles
Beyond legal challenges, DLPC faces immediate technical and operational constraints following the takeover. Company officials noted that some of the acquired substations are aging and may require urgent upgrades or rehabilitation.
Another key issue is limited access to critical operational data, including load profiles, maintenance histories, and system performance records. The absence of this information could slow efforts to optimize grid performance and ensure seamless service.
Despite these constraints, DLPC expressed confidence in its ability to address the issues through system upgrades and coordination with stakeholders.
DLPC president and chief operating officer Enriczar Tia said the company is counting on cooperation from Nordeco personnel to facilitate a smooth and orderly transition.
Energy Strategy
The expansion into Davao del Norte forms part of Aboitiz Power’s broader strategy to strengthen its distribution footprint in high-growth areas across Mindanao.
Even before the substation takeover, DLPC had begun extending its operations in nearby areas. In February, the company energized a hospital zone in Kapalong to ensure uninterrupted electricity supply for healthcare services.
It also completed a submarine cable project across the Pakiputan Strait, linking the Island Garden City of Samal to the Davao City grid and reducing reliance on diesel generators.
These developments highlight DLPC’s push to improve reliability and reduce costs in areas historically dependent on less stable power sources.
Economic Stakes
Local officials are closely watching the transition, citing its potential to reshape the province’s economic landscape. Davao del Norte Governor Edwin Jubahib said a stable and sufficient power supply is critical for attracting investments and supporting key sectors such as manufacturing, agribusiness, and digital services.
He noted that improved energy infrastructure could enhance business efficiency, create jobs, and boost the province’s competitiveness, particularly amid external pressures such as rising global fuel prices.
However, Jubahib stressed that the transition must be carefully managed to avoid disruptions that could affect industries and daily life.
Both DLPC and Nordeco have expressed a shared goal of preventing service interruptions. The coming months are expected to be critical, as legal proceedings unfold and operational integration advances.
The success of the transition will likely depend on coordination between the two entities, regulatory clarity, and the pace at which infrastructure upgrades can be implemented.
Source:
https://www.sunstar.com.ph/davao/davao-light-assumes-control-of-four-nordeco-substations
https://www.mindanaotimes.com.ph/davao-light-secures-substations-in-davao-del-norte/
