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The Davao Light and Power Company (Davao Light) has yet to begin transition talks with the Northern Davao Electric Cooperative (Nordeco) as it awaits the Supreme Court’s decision on a petition challenging the law expanding its franchise area to Davao del Norte and Davao de Oro.
“Unfortunately, we have yet to sit down with Nordeco because they are still waiting for the decision of the Court,” said Davao Light president and chief operating officer Engr. Enriczar Tia during a press conference at the company’s Davao City office on Monday.
Pending Court Ruling
Nordeco filed a petition before the Supreme Court earlier this year seeking to declare Republic Act 12144 unconstitutional. The law, which took effect on April 6, expanded Davao Light’s franchise coverage into Nordeco’s service areas.
Tia emphasized that despite the pending petition, the law remains valid and enforceable. “Pending the court’s decision, the law is regular and executory,” he said, noting that preparations continue to ensure a smooth transition once the legal issues are resolved.
Early groundwork has begun, designed to strengthen infrastructure readiness. Among the ongoing activities are pole extensions in Kapalong and Tagum, Davao del Norte. “We are making all these activities necessary for preparation. We cannot wait for the next two years before we act,” Tia said.
Infrastructure and Regulatory Steps
Tia acknowledged, however, that Davao Light’s expansion cannot fully proceed without completing facilities such as poles, wires, and transformers. He added that the company had offered to purchase Nordeco’s assets to speed up the transition, but no agreement has been reached.
“What’s going on now is building facilities, but the fastest, hopefully, is for us and Nordeco to be able to agree that we purchase their assets,” he explained.
Davao Light has also applied for a Certificate of Public Convenience and Necessity (CPCN) from the Energy Regulatory Commission (ERC), a license required for utilities to operate legally in the public interest. The company’s initial hearing was disrupted by interventions from Nordeco, with a follow-up session set for January 13, 2026.
“Hopefully, after that, ERC should be able to decide and then grant the CPCN so that legally we can start operating in Nordeco areas,” Tia said, clarifying that even with the certificate, cooperation from Nordeco remains necessary.
Consumers Eager For Transition
In Davao del Norte, business leaders and consumer advocates expressed optimism about the ERC’s provisional authority granted to Davao Light to operate in the province.
“This is one big step for customers of Tagum City and Davao del Norte who aspire for better service and lower electricity rates,” said Sean Gellangarin, president of the Tagum City Chamber of Commerce and Industry Inc.
Ryan Amper of the Davao Consumer Movement said residents expect more reliable power and fairer pricing once the transition proceeds. “Consumers stand to gain two major benefits: a reliable and transparent power system and affordable electricity—commitments Davao Light has made to the people of Davao del Norte,” Amper said.
Gellangarin added that while Nordeco continues to contest the transition, the business community is hoping for “a level-headed negotiation and peaceful transition” between the two utilities.
Source:
https://www.sunstar.com.ph/davao/nordeco-challenges-davao-light-franchise-expansion-at-supreme-court
