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The Philippine Rural Electric Cooperatives Association Inc. (Philreca) said Nordeco retains the legal right to challenge the takeover of its service areas by Davao Light and Power Co., a subsidiary of Aboitiz Power Corp.
According to the group, Nordeco’s franchise remains valid until 2028 for mainland areas and until 2033 for the Island Garden City of Samal, providing legal grounds to seek a temporary restraining order (TRO) against the transition.
Philreca emphasized that Nordeco has served communities in Davao del Norte and Davao de Oro for more than four decades, positioning the cooperative as a long-standing partner of the government in advancing rural electrification.
The cooperative currently supplies electricity to 16 municipalities and two cities across the two provinces.
Court Ruling
Despite Nordeco’s position, recent developments have favored Davao Light’s expansion. A court ruling has allowed the utility to take possession of Nordeco’s assets in Samal Island, a key step in consolidating control over electricity distribution in the area.
In addition, the national government has approved Davao Light’s expansion into parts of Davao del Norte and Davao de Oro, both territories traditionally served by Nordeco.
Davao Light, the country’s third-largest power distributor, currently operates in Davao City, Panabo City, and the municipalities of Carmen, Dujali, and Sto. Tomas.
Philreca maintained that electric cooperatives like Nordeco operate as regulated entities under existing laws and are supervised by national energy regulators, underscoring that any transition should adhere to legal and regulatory processes.
Transition Efforts
Earlier, Davao Light signaled its openness to coordinating with Nordeco to ensure an orderly handover of services and minimize disruption for affected consumers.
The company has also begun infrastructure integration efforts, including the completion of a submarine cable project linking Samal Island to the Davao mainland grid. The project is seen as a critical step toward improving reliability in the island area, which has faced longstanding service challenges.
Davao Light described the interconnection as part of a broader plan to integrate Samal into a more stable and centralized power network.
Beyond Davao, Aboitiz Power maintains a growing portfolio of distribution utilities nationwide. These include Visayan Electric in Cebu, Cotabato Light in parts of Mindanao, and the EnerZone Group serving industrial and residential zones in Subic, Batangas, and Cebu.
While expansion activities are underway, the dispute remains unsettled. Philreca’s position suggests that Nordeco’s legal options, including the potential filing of a TRO, could prolong the transition and shape how franchise overlaps are resolved in the power distribution sector.
Source:
https://business.inquirer.net/580598/nordeco-urged-to-block-davao-lights-takeover-of-assets
https://business.inquirer.net/580585/tro-eyed-vs-davao-lights-takeover-of-nordeco-assets
