Negosyante News

Nordeco Stays Operational Amid Davao Light’s Takeover Claims

MANILA, Philippines — Refusing to stand down despite aggressive corporate expansion maneuvers backed by local court mandates, a prominent provincial power cooperative is digging in its heels. The Northern Davao Electric Cooperative Inc. (Nordeco) announced that it continues to remain fully operational across its franchise areas, directly challenging claims of a complete corporate takeover.

The cooperative explicitly dismissed assertions made by the Aboitiz-led Davao Light and Power Co. (DLPC) regarding a total grid transition as “baseless and unlawful” while multiple court disputes remain unresolved.

The commercial battleground has reached a critical bottleneck, leaving everyday energy consumers caught directly between competing corporate announcements from the region’s two major utility players:

                      [ THE FRANCHISE GRID COLLISION ]
                                     │
         ┌───────────────────────────┴───────────────────────────┐
         ▼                                                       ▼
 [ DAVAO LIGHT (DLPC) MANDATE ]                          [ NORDECO'S DEFIANCE BLOCK ]
 • **The Takeover Notice:** Asserts full utility          • **The Coexistence Claim:** Maintains that it 
   operations in Tagum City, Kapalong, New Corella,        retains its legal franchise footprint to distribute 
   and Talaingod officially began on **May 26, 2026**.     power and process ongoing billing statements.
 • **The Court Enforcement:** Backed by a May 15           • **The Counter-Measures:** Actively urged consumers 
   Supplemental Writ of Possession issued by the Tagum     to document and report any instances of DLPC teams 
   Regional Trial Court (RTC) Branch 2.                    physically replacing Nordeco kilowatt-hour meters.

While DLPC management maintains that the court writ grants them the absolute, lawful right to assume emergency response, maintenance, and consumer collection duties, Nordeco insists that no major operational changes can be permanently enforced while the judiciary continues to review the transition’s underlying legality.

The long-running corporate feud traces back to the legislative expansion of Davao Light’s franchise area. The legal parameters established by the state outline a highly contested multi-year timeline:

[ April 2025: RA 12144 Enacted ] ──► Expands Aboitiz-led Davao Light franchise into parts of Davao del Norte and Davao de Oro.
                                           │
                                           ▼ (The Maximum Buffer)
[ Mandated 24-Month Transition Window ]   ──► Authorizes Nordeco to temporarily operate during a phased system handover.
                                           │
                                           ▼
[ May 15, 2026: The Expropriation Order ] ──► RTC Tagum affirms DLPC's right to physically seize Nordeco distribution assets.
                                           │
         ┌─────────────────────────────────┴─────────────────────────────────┐
         ▼                                                                   ▼
   [ THE HIGH COURT APPEAL ]                                           [ FIELD LEVEL SEIZURES ]
   • **The SC Petition:** Nordeco filed a Petition for Review on       • **Substation Takeovers:** Court sheriffs have already executed 
     Certiorari with a urgent prayer for a Temporary Restraining        physical possession handovers for four key power substations 
     Order (TRO) before the Supreme Court.                               and Nordeco's office in Barangay Magugpo.
   • **The Core Argument:** The cooperative is seeking to halt the     • **The Grid Highway:** DLPC notes these seized substations form the 
     interim RTC orders to prevent "sudden disruptions" to local consumers.  main highway connecting power from the NGCP to local towns.

The two power firms manage completely different operational footprints across the Davao Region, making the sudden integration of their infrastructure highly complex:

Utility EnterpriseInstitutional StructurePrimary Franchise Coverage Areas
NordecoElectric CooperativeHistorically provides electricity services to 16 municipalities and two major cities across Davao de Oro and Davao del Norte.
Davao Light (DLPC)Investor-Owned Utility (AboitizPower)Country’s third-largest distribution firm; services Davao City, Panabo City, and the towns of Carmen, Dujali, and Sto. Tomas.

With billings for power consumed from May 26 onwards hanging in the balance, both entities are urging consumers to remain calm while maintaining stability in localized power delivery. For the thousands of residents and business owners across Tagum City and neighboring municipalities, the immediate future of their utility services now rests entirely in the hands of the Supreme Court, as justices prepare to decide whether to grant Nordeco a temporary legal shield or clear the path for Aboitiz to lock down its expanded energy monopoly in Mindanao.

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