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The Northern Davao Electric Cooperative, Inc. (Nordeco) has called on electricity consumers in the Island Garden City of Samal (Igacos) to continue paying their power bills to the cooperative, maintaining that it remains the island’s lawful distribution utility despite the recent takeover of its line assets by Davao Light and Power Company (Davao Light).
In an advisory issued to its member-consumer-owners on March 6, Nordeco stressed that its authority to distribute electricity in Samal remains valid under its congressional franchise, which runs until 2033.
The cooperative said its operations are protected under Section 11, Article XII of the 1987 Constitution. It also cited jurisprudence involving electric cooperatives in Iloilo City and MORE Electric and Power Corporation, which held that multiple distribution franchises may exist within the same service area.
Nordeco reiterated that consumers should continue settling their electricity accounts with the cooperative while legal questions surrounding the power distribution transition in Samal remain unresolved.
The advisory followed the entry of Davao Light into Samal’s distribution system after the enactment of Republic Act (RA) 12144, which expanded the Aboitiz-owned utility’s franchise to cover areas in Davao del Norte and Davao de Oro, including Igacos.
Disputed Takeover
As part of the transition process, the Regional Trial Court (RTC) Branch 4 in Panabo City issued a writ of possession allowing Davao Light to take control of Nordeco’s distribution facilities and assets in Samal.
The order was implemented on February 25, 2026, when a court sheriff turned over power lines, poles, transformers, and related infrastructure to the utility.
Nordeco, however, questioned the writ’s enforcement, arguing that its implementation was premature. “Again, the implementation of the Writ of Possession on February 25, 2026 taking over the line assets of Nordeco in Igacos was premature and illegal,” the cooperative said in its statement.
According to Nordeco, several motions challenging the writ remain pending before the Panabo court. These include a motion for reconsideration filed on February 6 seeking to reverse the order granting the writ of possession, and an omnibus motion dated February 20 requesting the lifting of both the notice to vacate and the writ itself.
On the same day the assets were turned over, the cooperative also filed a motion asking the court to issue a status quo order to halt further implementation of the takeover while the legal issues are being resolved.
Nordeco emphasized that the court has yet to rule on these filings.
Davao Light Claims Legal Basis
Davao Light has maintained that its authority to operate in Samal is backed by several legal and regulatory developments. In a statement, the company cited RA 12144, which expanded its franchise area, as well as a Supreme Court ruling affirming the law’s constitutionality.
The firm also pointed to the writ of possession issued by the RTC and a Provisional Certificate of Public Convenience and Necessity granted by the Energy Regulatory Commission (ERC), authorizing it to begin serving consumers in Davao del Norte, including Samal, and in Davao de Oro.
Davao Light said the transition of power infrastructure has already begun, noting that its distribution poles were installed on the island in February.
The company also highlighted an exclusive power supply agreement with Phil-Power Ventures that took effect on February 25, under which electricity generated by the firm will be supplied to households and businesses in Samal.
“The writ, a valid court order, was implemented according to legal procedures and remains enforceable unless restrained or reversed by a competent court,” said Fermin Edillon, Davao Light’s Reputation Enhancement head.
Concerns From Residents
The dispute has drawn attention from residents and local stakeholders in Samal, where concerns about power reliability have long been raised.
Business groups and tourism stakeholders have previously expressed hope that Davao Light’s entry into the island’s power distribution system could help improve electricity stability.
Despite the ongoing transition, Nordeco reiterated that it remains the legitimate distribution utility in Samal and urged consumers to continue paying their electricity bills to the cooperative while the legal battle over the island’s power distribution continues.
Source:
https://www.sunstar.com.ph/davao/nordeco-to-samal-consumers-settle-your-bills-with-us
https://www.sunstar.com.ph/davao/davao-light-slams-nordecos-misleading-claims-on-samal-power
