DCM Claims Nordeco Pullout Left Critical Assets Missing, Complicating Takeover

A consumer group has criticized the Northern Davao Electric Cooperative (Nordeco) for allegedly removing critical assets during its exit from Tagum City, as Davao Light and Power Company begins taking control of key substations amid operational and data challenges.

The Davao Consumer Movement (DCM) has raised concerns over what it described as a “messy” withdrawal by Nordeco following the enforcement of a writ of possession in favor of Davao Light.

The Regional Trial Court (RTC) Branch 2 in Tagum City ordered the transfer of facilities, enabling the Aboitiz-led utility to formally assume control of four substations and Nordeco’s main office on March 25, 2026. The assets include substations in Barangays Canocotan, Mirafuentes, and Apokon in Tagum City, as well as one in Asuncion town, along with the cooperative’s office in Tipaz, Magugpo.

However, DCM said video evidence showed that while Nordeco vacated the premises, it allegedly failed to turn over essential operational materials such as computers, servers, hard drives, and key documents.

“While their voluntary exit may appear cooperative, leaving the office empty shows disregard for the court’s orders and, more importantly, for the consumers who rightfully own these assets,” the group said.

DCM stressed that these resources are consumer-owned and should have been handed over to ensure continuity of service during the transition.

Operational Gaps

The absence of critical equipment and records has added to the technical challenges already facing Davao Light as it begins integrating the newly acquired facilities.

Company officials earlier acknowledged that some of the substations are aging and may require immediate rehabilitation or upgrades. At the same time, the limited availability of operational data, such as load distribution, maintenance history, and system performance, has made grid management more complex.

The writ of possession, issued following a February 27, 2026 court ruling, covers substation assets but does not extend to distribution lines in Tagum City. This limitation highlights the partial nature of the takeover and constrains Davao Light’s ability to fully manage electricity delivery.

Despite these constraints, the utility has expressed confidence that technical upgrades and coordination efforts will help stabilize operations in the coming months.

Billing Uncertainty

For consumers, the transition has raised immediate concerns about service reliability and billing arrangements.

DCM warned that Nordeco’s alleged failure to cooperate could delay operational improvements and hinder the delivery of reliable electricity expected under Davao Light’s management.

“NORDECO’s refusal to cooperate is not just irresponsible—it is a betrayal of the very consumers it claims to serve,” the group said, urging the cooperative to prioritize consumer welfare and cease actions that could disrupt the transition.

Meanwhile, Davao Light clarified that it has not yet assumed responsibility for billing, as it does not currently control distribution networks. Billing will only begin once legal authority over these assets is secured.

The company said it will conduct baseline meter readings before initiating billing and will provide advance notice to consumers regarding payment schedules and system changes.

Critical Transition

Beyond operational concerns, the takeover is seen as a significant development for infrastructure and investor confidence in the province. 

The entry of Davao Light into Tagum and nearby areas is expected to influence long-term power reliability and economic activity.

However, the success of the transition may depend heavily on resolving asset and data gaps, as well as ensuring cooperation between stakeholders.

Source:

https://edgedavao.net/the-big-news/2026/03/davao-consumer-movement-slams-nordecos-messy-exit

https://www.sunstar.com.ph/davao/davao-light-takes-over-davao-del-norte

https://www.sunstar.com.ph/davao/davao-light-assumes-control-of-four-nordeco-substations