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On February 25, 2026, a major shift in Samal’s power sector formally took place as Davao Light and Power Co. (Davao Light) assumed control of electricity distribution in the Island Garden City of Samal (Igacos).
In a company disclosure, Davao Light said the Sheriff of the Regional Trial Court in Panabo, Branch 4, enforced the court’s order by taking possession of the island’s distribution assets and transferring operational authority to the utility.
The franchise area had previously been managed by Northern Davao Electric Cooperative (Nordeco), which oversaw power distribution in Samal before the court-approved transition.
A sheriff’s order dated February 19 directed Nordeco to vacate its premises, clearing the way for Davao Light to assume control of distribution facilities in parts of Davao del Norte and Davao de Oro.
Earlier, the Energy Regulatory Commission (ERC) had issued Davao Light a provisional Certificate of Public Convenience and Necessity, authorizing it to operate as the area’s distribution utility.
In a separate development, the Supreme Court, in a January 14, 2026, notice, upheld the validity of Republic Act No. 12144, ruling that the law’s title satisfied the Constitution’s one-subject requirement and affirmed Davao Light’s authority to take possession of Nordeco’s assets.
The transfer of facilities followed a trial court ruling granting Davao Light’s bid to obtain control of Nordeco’s assets in Samal.
Davao Ligh stated that the firm remained willing to sit down with Nordeco to discuss the remaining areas covered by the expanded franchise, stressing that coordination between the two utilities would be crucial to managing a smooth handover and avoiding disruptions to electricity service.
(Also read: Mindanao Brightens Its Future: Racing Toward a 50-50 Renewable Energy Mix by 2030)
A triumph for Samal
Davao del Norte Governor Edwin Jubahib described the takeover as a win for electricity consumers, saying residents had endured years of elevated power costs and recurring outages. “This is the justice we have fought for,” he declared. “Business owners and residents have long endured unstable services and high charges that could not meet the island’s demands. Our petitions to Congress and the Senate led to Republic Act 12144, and now that the Supreme Court has dismissed the TRO, Davao Light’s entry is official and legal.”
Mayor Lemuel Reyes shared the governor’s view, pointing out that unreliable electricity had long discouraged potential investors and routinely led to damaged appliances in local homes.
“This is what the people of Samal have been waiting for. For so long, people were afraid to buy appliances because they would just get damaged,” he stated. “To my brothers in Samal: now is the time to buy those appliances. To investors: come to Samal now, because we finally have good service.”
In 2025, the Island Garden City of Samal’s Investment and Tourism Office (CITO) reported a significant surge in visitors this year. From January to August, domestic arrivals reached 276,554, up from 166,152 during the same period last year. Foreign tourist numbers also climbed sharply, rising to 7,774 from 4,159 a year earlier.
However, CITO senior tourism operations officer Hazel Rose reported that frequent power outages have prompted some resort guests to cancel their reservations. “If we will have a stable power supply, I’m sure the tourist arrivals will increase,” she said.
According to Reyes, the island anticipates an even higher surge in tourism, pointing out that Samal welcomed roughly two million visitors in 2024. He added that the number could potentially double this year once the island’s electricity issues are fully addressed.
“Electricity is really our problem here. [Energy] goes hand-in-hand with water,” he explained. “Because if there’s no electricity, we don’t have water too.”
The Backstory: Years of Power Woes
In 2024, former Samal Mayor and current Davao del Norte Board Member Al David Uy revealed that the island’s prolonged power crisis under Nordeco had cost the local government unit an estimated P120 million to P150 million each year. He broke down the impact, citing P50 million in losses for tourism, P30 million for local businesses, and another P50 million in household damages. Public services and infrastructure suffered P10 million in setbacks, while agriculture and fisheries were hit with P20 million in losses.
“Just imagine this has been going on. By 2033, the losses will surely triple or quadruple,” he warned.
Meanwhile, Reyes highlighted that Samal relies primarily on eight generator sets for its electricity, yet persistent breakdowns often reduce the operational units to just four. This has caused daily power interruptions lasting 30 to 50 minutes, affecting both residents and tourists.
He added that the generators are neither environmentally sustainable nor entirely dependable. Despite the city’s investments in water infrastructure, the pumping stations remain vulnerable, relying heavily on a consistent power supply.
“The problem is, when we have more guests, they don’t stay for more than one or three days,” complained Reyes. “It’s a big loss for our tourism sector. For example, [some people] book a place for three days. But after one day, they leave because the electricity is not good.”
Another point of frustration for residents and local officials is the long-overdue submarine cable project from Nordeco. The P1.1 billion, 14.7-kilometer initiative is intended to link Barangay Aundanao in IGaCoS to the Pantukan grid, aiming to ease the island’s chronic power interruptions.
Slated for completion in April 2023, the project has seen no reported progress since Nordeco’s initial announcement, leaving the community still reliant on unreliable local generators.
However, this wasn’t the first delay for the Samal submarine cable project. Launched in 2019 through a partnership between the National Electrification Administration (NEA) and the Davao del Norte Electric Cooperative (Daneco, but now Nordeco), the 50-megawatt cable aimed to stabilize the island’s power without extra costs.
Later on, Nordeco reasoned that progress was stalled by pandemic disruptions and logistical setbacks, leaving the project unfinished despite partial infrastructure already in place.
In 2023, the Igacos City Council declared a state of calamity over the worsening power crisis, allocating P8.1 million for modular generators. Uy slammed Nordeco for failing to deliver stable electricity and for repeated delays on the submarine cable, questioning how the cooperative had managed its reported P1-billion budget.
In September 2025, Jubahib won approval to create a Special Inspection Team to review major national projects in Davao del Norte. The councils highlighted Nordeco, opposing its franchise renewal beyond 2028, requesting a financial report on the submarine cable loan, and urging a Senate investigation. Jubahib stressed the team aims to hold contractors and agencies accountable for project mismanagement.
During a Senate hearing, Ryan Amper, convenor of the Davao Consumers Movement (DCM), alleged that Nordeco obtained the 2022 loan without NEA or ERC approval, left local governments in Davao del Norte uninformed, and lacked an Environmental Compliance Certificate from the DENR. He also condemned the cooperative’s Board, calling its unelected “officers-in-charge” responsible for authorizing the project contract. Nordeco denied the allegation.
(Also read: Currents of Progress: ZAMCELCO Sparks Zamboanga’s Rise)
Samal Anticipates Reliable Power
For an island that has struggled for years with unreliable service, the takeover marks more than a corporate shift. It represents a critical inflection point for local livelihoods, tourism, and economic growth.
In preparation for the transition, Davao Light has established a 24/7 hotline and opened a Customer Service Center at the Igacos Commercial Center, ensuring residents have continuous support and a local point of contact.
Meanwhile, Samal residents have welcomed the change in management as a promising step forward. Banggat Randie, a helper at a sari-sari store in Barangay Villarica, shared that he had previously taken out a ₱50,000 loan just to cover the high costs of securing an electricity connection. “If Davao Light will take over, I think most of us will transfer,” he said. “I will even apply for another loan if necessary because the rates are cheaper, and I think even the installation fee is more affordable.”
At the same time, hotel cashier Shiela Gantalao recalled the long nights spent fanning her four-year-old to sleep in the stifling heat, often until dawn. “We are happy to hear about Davao Light coming in because we only heard good things about how they are providing service to Davao City,” she shared.
After years in the dark, Samal may finally be stepping into a more stable and electrified future.
Sources:
https://www.sunstar.com.ph/davao/samal-logs-over-276k-tourist-arrivals-in-jan-aug-2025
https://mb.com.ph/2025/10/13/brownouts-chase-tourists-away-from-samal-island
https://www.pna.gov.ph/articles/1081192
https://www.pna.gov.ph/articles/1138729
https://www.pna.gov.ph/articles/1180239
https://www.sunstar.com.ph/davao/activate-new-submarine-cable-or-face-consequence
https://www.sunstar.com.ph/davao/local-news/nordeco-denies-p15-b-submarine-cable-loan
https://www.sunstar.com.ph/davao/installation-of-davao-city-samal-submarine-cable-eyed-in-october
https://mb.com.ph/2026/02/26/aboitizs-davao-light-begins-2-billion-expansion-after-court-win
