Nordeco says it continues Davao operations pending SC lawsuit

NORTHERN DAVAO Electric Cooperative, Inc. (Nordeco) said it would continue serving its franchise area in Davao while pursuing legal remedies before the Supreme Court (SC) to challenge the expansion of another power distributor into its coverage zone.

“Nordeco remains committed to delivering… service to its consumers while protecting the rights, gains and mission of rural electrification,” the cooperative said in a statement on Monday.

Nordeco said it has asked the Supreme Court to clarify and reconsider rulings that touch on the coexistence of its operations with Davao Light and Power Co., which has expanded into parts of its traditional franchise area.

Nordeco Project Supervisor Emmanuel Galarse said disputes over asset possession and operational control remain active before both a regional trial court and the Supreme Court. “These matters are not yet final and are still being decided by the courts,” he added.

A regional trial court earlier granted Davao Light control over certain Nordeco assets in Tagum City and parts of Davao del Norte. Nordeco has challenged the ruling, saying it affects its ability to maintain service continuity in affected areas.

Another ruling also favored Davao Light’s coverage of the Island Garden City of Samal.

The cooperative filed a petition before the Supreme Court on May 26 seeking to stop the takeover of its assets in Tagum City while the legal issues remain unresolved.

Nordeco also said it could not yet approve requests for withdrawal of billing deposits due to the disputes, and has referred the matter to the Energy Regulatory Commission (ERC) for guidance based on existing regulations.

Davao Light is the country’s third-biggest electric distribution utility, serving Davao City, Panabo, Carmen, Dujali and Santo Tomas in Davao del Norte, and has expanded into more areas following the enactment of Republic Act No. (RA) 12144 or the Davao Light Expansion Act.

The expansion has triggered overlapping franchise claims, with Nordeco arguing that parts of the law allowing Davao Light’s broader coverage remain under constitutional challenge before the Supreme Court.

Nordeco said the legality of the franchise expansion is still under judicial review, and any actions arising from it should be treated as provisional until final rulings are issued.

“As these constitutional issues remain unresolved and are currently under judicial review, Nordeco will continue to pursue all available legal remedies, including challenging the provisional authority previously granted to Davao Light by the ERC,” the cooperative said.

Nordeco added that it remains focused on maintaining electricity services within its assigned areas while legal proceedings continue, noting that operational continuity and consumer protection remain its priority despite uncertainty over jurisdictional boundaries.

In a separate statement, Davao Light said it has full authority to operate across Davao del Norte under RA 12144, adding that law has been “upheld by the Supreme Court.”

“With these legal bases, Davao Light is now responsible for the full operation of the electric distribution system within its franchise area, including maintenance, customer service, billing and collection,” the power distributor said, referring to the court rulings for the takeover of the assets. — Sheldeen Joy Talavera