The Northern Davao Electric Cooperative, Inc. (Nordeco) announced it will pursue all available legal avenues to safeguard its franchise territories. This comes in response to the recent enactment of a law that grants Davao Light and Power Co. (Davao Light) the authority to expand its operations into areas previously under Nordeco’s jurisdiction.
Republic Act No. 12144, which lapsed into law on April 6, 2025, authorizes Davao Light to extend its services to Samal Island, along with the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in Davao del Norte. The law also covers the municipalities of Compostela, Laak, Mabini, Maco, Maragusan, Mawab, Monkayo, Montevista, Nabunturan, New Bataan, and Pantukan in Davao de Oro.
(Also read: What SAIDI and SAIFI Mean for Consumers)
“Significant legal concerns”
“Nordeco strongly opposes this law and shall pursue all available legal remedies to defend the sanctity of the cooperative’s franchises, the welfare of its Member-Consumer-Owners, and the integrity of the rural electrification program,” the electric cooperative said in a statement posted on its Facebook page.
“The enactment of this law by the inaction of the President raises significant legal concerns, particularly regarding potential violations of established franchise boundaries, as the Supreme Court has declared that franchises are property rights under the constitutionally guaranteed due process clause,” Nordeco added.
Nordeco emphasized that the newly enacted law “directly affects” its contractual responsibilities within the affected areas. The cooperative pointed out that its mandate is grounded in Presidential Decree No. 269 and further upheld by the Electric Power Industry Reform Act (EPIRA) and Republic Act No. 10531, also known as the National Electrification Administration (NEA) Reform Act.
Nordeco’s Acting General Manager, Elvera S. Alngog, stated that the law’s enactment does not alter the cooperative’s legal position. She expressed concerns that the legislation undermines Nordeco’s right to operate for the full duration of its franchise term.
“We have consistently presented evidence pointing to its serious flaws — legal and constitutional — and this is exactly what we intend to demonstrate before the courts of law,” Alngog said.
“We remain firm in our commitment to retain Nordeco’s franchises under the stewardship of the Member-Consumer-Owners (MCOs). You can expect us to be even more resolute in asserting the legal grounds that prove House Bill 11072 to be unconstitutional,” Alngog continued.
(Also read: Nordeco Faces Scrutiny Over Power Issues)
Support for RA 12144
Meanwhile, advocacy group ILAW welcomed the enactment of RA 12144 in a statement on its Facebook page.
“This is a vital and long-overdue step toward addressing the persistent power issues that have disrupted business operations and the lives of residents in these areas,” ILAW said.
In its recent focus group discussion (FGD) study examining the impact of power outages on tourism-related businesses, ILAW learned that frequent blackouts cost businesses anywhere from P10,000 to P100,000 a day.
“We call on the Department of Energy Philippines (DOE) and the Energy Regulatory Commission (ERC) to ensure a smooth transition and guarantee that the law delivers on its promise of an improved and reliable service for the people of Davao del Norte and Davao de Oro,” ILAW added.
(Also read: Power Woes in Tourist Spots a Bane for Business — Study)
The Davao Consumer Movement (DCM) also expressed its support for the new law, which will “open new opportunities for residents” in the Davao Light franchise expansion areas.
In a statement on its Facebook page, the consumer group said, “A stable, reliable, and affordable power will allow businesses to operate smoothly and allow them to tap new growth opportunities. The improved power situation will also improve the quality of life of the residents of Davao del Norte and Davao de Oro.”
Sources:
https://businessmirror.com.ph/2025/04/14/legal-path-explored-in-power-co-op-case/
https://www.facebook.com/photo?fbid=1089442593212621&set=a.640633388093546
https://www.sunstar.com.ph/davao/nordeco-vows-to-stay-operational
https://www.facebook.com/photo?fbid=122192429540125834&set=a.122111136284125834
https://businessweekmindanao.com/new-law-seen-to-gain-davao-power-consumers/
https://www.facebook.com/share/p/1HA9L9gYNF/
