Nordeco Maintains Legal Authority in Samal Amid Davao Light Asset Takeover
The Northern Davao Electric Cooperative, Inc. (Nordeco) has issued a firm advisory to its member-consumer-owners (MCOs) in the Island Garden City of Samal (Igacos), urging them to continue settling their electricity bills with the cooperative. This directive comes despite the recent takeover of Nordeco's line assets by the Davao Light and Power Company (Davao Light), a move that has sparked a significant legal dispute over power distribution in the region.
Legal Grounds and Constitutional Protection
In a statement released to consumers on March 6, 2026, Nordeco emphasized that it remains the lawful power distribution utility in Samal, citing its congressional franchise which is valid until 2033. The cooperative highlighted that its operations are protected under Section 11, Article XII of the 1987 Constitution, which supports the coexistence of multiple power distribution franchises within the same service area. Nordeco referenced court rulings involving the Iloilo electric cooperatives and MORE Electric and Power Corporation to bolster its claim, arguing that these precedents affirm its continued authority.
Ongoing Legal Dispute and Asset Transfer
The advisory follows the enactment of Republic Act No. 12144, which expanded Davao Light's franchise to cover areas in Davao del Norte and Davao de Oro, including Igacos. As part of this transition, the Regional Trial Court Branch 4 in Panabo City granted a writ of possession in favor of Davao Light, allowing it to take control of Nordeco's distribution facilities and assets. On February 25, 2026, the court sheriff implemented this order, transferring power lines, poles, transformers, and related assets in Samal to the Aboitiz-owned utility.
However, Nordeco has strongly contested this action, labeling the implementation of the writ as premature and illegal. The cooperative argues that several motions challenging the writ of possession are still pending before the Panabo court, including a motion for reconsideration filed on February 6, 2026, and an omnibus motion submitted on February 20, 2026, which seeks to lift the notice to vacate and the writ itself. Additionally, on February 25, 2026, Nordeco filed a motion for a status quo order to halt further asset transfers while legal issues are resolved.
Impact on Local Consumers and Stakeholders
The transition in Samal's power distribution has garnered attention from local officials, residents, and business groups, many of whom have long expressed concerns about power reliability on the island. Tourism stakeholders and business organizations have previously voiced optimism that Davao Light's entry could enhance electricity supply stability, potentially boosting economic activities in the area.
Despite these hopes, Nordeco has reiterated its legitimacy as the distribution utility in Samal and called on MCOs to continue paying their bills to the cooperative until the legal disputes are fully resolved. As of the latest updates, Davao Light has not issued a public statement regarding Nordeco's claims, leaving the situation in a state of uncertainty for consumers and stakeholders alike.
