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The Northern Davao Electric Cooperative (Nordeco) faced a significant turning point when the Energy Regulatory Commission (ERC) granted Davao Light and Power Co., Inc. (Davao Light) provisional authority to operate in areas previously served by Nordeco, following the passage of the Davao Light Expansion Act. This certificate allows the firm to deliver electricity across Davao del Norte, Davao de Oro, the Island Garden City of Samal (IGaCoS), and other newly included territories, marking a major shift in the region’s power distribution landscape.
In late February 2026, a court sheriff formally turned over distribution infrastructure, such as electric poles, lines, transformers, and substations, to Davao Light as part of a writ of possession ordered by the Regional Trial Court–Panabo Branch 4. This followed a January 2026 Supreme Court decision dismissing petitions to nullify RA 12144 and upholding the law’s constitutionality. With the provisional authority and court actions in place, Davao Light officially began assuming operations of these facilities.
However, Nordeco denounced the recent transfer of Samal’s power distribution in the Island, claiming that “The purported implementation of the Writ of Possession by the Sheriff and Local Government Officials was ILLEGAL.”
The cooperative also argued that the move violated safety protocols, caused financial losses, and that its franchise in Samal remains valid until 2033, pledging to continue protecting its member-consumer-owners and public investments in rural electrification.
Meanwhile, municipal leaders in affected areas have publicly welcomed the transition. “This is the justice we have fought for,” said 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.
(Also read: Currents of Progress: ZAMCELCO Sparks Zamboanga’s Rise)
Tracing the Roots of Nordeco
Nordeco was originally established on September 24, 1971, as the Davao del Norte Electric Cooperative, Inc. (Daneco) to provide electricity to much of what is now Davao del Norte and Davao de Oro.
However, the cooperative faced years of internal conflict beginning around 2012, when rival factions aligned with the National Electrification Administration (NEA) and the Cooperative Development Authority (CDA) each claimed authority over its management. The disputes sparked legal battles and operational confusion, at times affecting bill collection and service delivery.
After seven years of conflict, in 2019, the rival groups within Daneco finally resolved their long-standing disputes, uniting under the newly established Nordeco. The change not only ended internal strife but also reflected the cooperative’s expanded reach across both provinces under its franchise.
Over the years, Nordeco has highlighted a series of operational, institutional, and community-focused achievements:
Attained “Category A” Status
In 2023, Nordeco was elevated to Category A status by the NEA. This milestone reflects improved operations and allows for further service enhancement for its member‑consumer‑owners. It also garnered the Improved EC Award from NEA and additional citations from the Philippine Rural Electric Cooperative Association (Philreca).
Improved Operational Performance
During efforts to resolve internal disputes in 2017, Nordeco made measurable operational improvements under NEA supervision, notably reducing its system loss from around 23% of total supply to approximately 15–17 %. While the reduction strengthened financial stability and improved service reliability, the level remained above the regulatory system loss cap of 12% allowed for electric cooperatives.
Community and Capacity‑Building Initiatives
In 2021, Nordeco engaged in CSR and community development programs, including skills training for its member‑consumer‑owners (MCOs), such as electrical installation, maintenance, and livelihood skills in partnership with the Department of Trade and Industry (DTI). These programs aim to empower communities within their franchise areas.
Rural Electrification Efforts
Nordeco participated in the Sitio Electrification Program (SEP), energizing households in remote sitios that previously lacked access to electricity. In 2022, it helped electrify 110 households in four sitios of San Isidro, Davao del Norte, contributing to greater rural development.
(Also read: Mindanao Brightens Its Future: Racing Toward a 50-50 Renewable Energy Mix by 2030)
Controversies Surrounding Nordeco
Still, Nordeco’s operations have been mired in criticism for years, most notably around service quality, power reliability, and pricing.
Service Reliability and Frequent Interruptions
Across local news reports and community discussions, consumers frequently reported long and unpredictable power interruptions under Nordeco’s watch. One long-standing complaint involved extended brownouts and sudden service outages that disrupted households and businesses. Instances of 6- to 12-hour interruptions were commonly cited on local forums.
Residents lamented that appliances were damaged due to unstable power and that unpredictable outages hampered online work, education, and business operations. These complaints helped fuel the narrative that service under Nordeco fell short of consumer expectations.
Pricing and Consumer Cost Burdens
Consumers in areas served by Nordeco also frequently noted that electricity rates were notably higher compared to neighboring service areas under Davao Light. For example, some residents shared that their monthly bills were significantly higher than equivalent usage in Davao City.
According to PhilStar columnist Alex Magno, Davao Light charges roughly half of what Nordeco bills its consumers, while delivering what he described as “reliable service that will liberate Samal Island from debilitating power outages.” He also pointed to the company’s broader rural electrification reach, claiming it has energized about 99% of communities in its franchise area compared with Nordeco’s reported 78% accomplishment rate.
Submarine Cable Delays and Controversy
Nordeco’s planned P1.1 billion submarine cable project to link Samal to the Pantukan grid, intended to address chronic power outages, has faced repeated delays and criticism. Local officials and consumer advocates have complained about a lack of timely updates and the project’s failure to energize despite multiple promised deadlines, contributing to ongoing power instability on the island. Former Samal Mayor Al David Uy directly asked about unspent capital funds for the submarine cable.
WESM Suspension Over Unpaid Debts
Nordeco was suspended from the Wholesale Electricity Spot Market (WESM) effective September 2025 after accumulating hundreds of millions of pesos in unpaid energy settlement obligations — reportedly among the highest arrears of any market participant nationwide. This suspension has drawn criticism from consumer groups calling for greater transparency and accountability from the cooperative.
Did Nordeco Deserve What It Got?
Whether Nordeco deserved the loss of its territory depends on perspective. As a rural electric cooperative, it played a historic role in electrifying remote communities and later stabilising its governance after years of internal conflict. For many consumers, however, the more pressing issue was service quality, reliability, and the cost of electricity.
A similar issue arose in Iloilo when MORE Electric and Power Corporation expanded into areas previously served by the Iloilo Electric Cooperatives (ILECOs). The case reached the Supreme Court of the Philippines, which ruled in 2024 that a franchise is not the exclusive private property of a utility. The Court held that allowing another player to enter the market was lawful if it promoted public interest through lower rates and improved service.
Associate Justice Rodil V. Zalameda stated, “Without competition, ILECOs can easily dictate the price of electricity. Allowing the entry of another player thus benefits consumers, who no longer have to wait until ILECOs’ franchises expire.”
That ruling reinforced a central principle in the power sector. Consumer welfare takes precedence over franchise protection. If a new provider can offer more stable electricity at a fairer price, policy and jurisprudence suggest that competition may serve the greater good. In the end, the outcome should not be about which utility prevails, but whether ordinary consumers receive affordable and reliable power.
Sources:
https://www.sunstar.com.ph/davao/supreme-court-upholds-davao-light-expansion
https://en.wikipedia.org/wiki/Northern_Davao_Electric_Cooperative
https://www.pna.gov.ph/articles/1086238
https://www.sunstar.com.ph/amp/story/davao/local-news/nordeco-attains-category-a-status
https://edgedavao.net/latest-news/2022/05/nordeco-energizes-110-households-in-davnor
https://edgedavao.net/latest-news/2021/08/nordeco-conducts-skills-training-to-consumers
https://www.reddit.com/r/tagum/comments/1ldu0tf/2_hours_na_brownout_today_tapos_12_hours_din_nung/
https://www.reddit.com/r/tagum/comments/1f65z6s/nordeco
https://qa.philstar.com/opinion/2024/05/30/2358955/malfunctioning
