The Northern Davao Electric Cooperative, Inc. (Nordeco) has announced that it will comply with the Energy Regulatory Commission's (ERC) July 3, 2026 order directing it to cease operations in several parts of Davao del Norte, while maintaining that it will continue pursuing legal remedies as the dispute over its franchise and distribution assets with Davao Light and Power Company remains pending before the Supreme Court.
Nordeco's Response to ERC Order
In a statement issued on July 3, Nordeco said it would abide by the ERC directive but stressed that it considers the order temporary because the High Court has yet to resolve petitions challenging the constitutionality of Republic Act No. 12144 and the legality of Davao Light's exercise of eminent domain over Nordeco’s distribution assets in Davao del Norte.
"As the Order itself acknowledges that Supreme Court cases are yet pending both on the constitutionality of Republic Act No. 12144 and the propriety of the exercise of the right to eminent domain by Davao Light and Power Company over the assets of Nordeco in the Province of Davao del Norte, Nordeco submits that the July 3, 2026 Order is temporary in nature," the cooperative said.
Areas Affected by the Order
Pending the resolution of the legal challenges, Nordeco said it is constrained to immediately discontinue its operations in Tagum City, the Island Garden City of Samal (Igacos), and the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in Davao del Norte.
The cooperative, however, clarified that it will continue serving its member-consumer-owners in the 11 municipalities of Davao de Oro, which are not covered by the ERC's latest directive.
The cooperative likewise reaffirmed its commitment to protecting the interests of its member-consumer-owners and preserving government-funded rural electrification projects, adding that it will continue to exhaust all legal remedies available to challenge the implementation of the law and defend what it believes are its rights over the contested service areas.
Background of the Dispute
The ERC's latest order came after a series of regulatory and judicial developments recognizing Davao Light's authority over the expanded franchise areas. On June 25, 2026, the Regional Trial Court in Panabo City directed Nordeco to stop collecting payments, issuing bills, conducting meter reading, carrying out disconnections and reconnections, performing maintenance and repair works, and responding to service requests throughout the Island Garden City of Samal.
The court ruled that the electric distribution assets in Igacos were already under the possession and control of Davao Light, allowing the utility to exclusively perform electric distribution operations in the city.
Following the court order, Davao Light issued a public advisory informing customers in Igacos that they should no longer expect billing, collections, disconnections, or other electricity-related operations from Nordeco. The company advised consumers to coordinate directly with Davao Light for bill payments, service requests, outage reports, maintenance concerns, and other electricity-related transactions. It also requested customers to report any instances where Nordeco continues to perform activities prohibited by the court so that appropriate action could immediately be taken.
ERC Order Reinforces Davao Light's Authority
The July 3 ERC order further reinforced Davao Light's authority by recognizing the utility as the sole authorized electric distribution provider in Tagum City, the Island Garden City of Samal, and the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod. The electric commission directed Nordeco to immediately stop billing and collecting payments from consumers in the affected areas to prevent confusion and possible double billing. It likewise ordered the cooperative to turn over customer records, billing information, metering data, and other operational documents to Davao Light within 15 days to facilitate the transition of services.
According to the ERC, Davao Light currently holds a valid Provisional Certificate of Public Convenience and Necessity (CPCN) and has already assumed possession of the distribution assets in the contested areas through court-issued writs of possession. The Commission also noted that no temporary restraining order or injunction has been issued by the Supreme Court to suspend the implementation of Republic Act No. 12144, which expanded Davao Light's legislative franchise to include portions of Davao del Norte and Davao de Oro.
Origin and Impact of the Dispute
The dispute traces its roots to the enactment of Republic Act No. 12144 in 2025, which expanded Davao Light's franchise to cover several areas previously served by Nordeco. Since then, the two power distributors have been engaged in multiple legal and regulatory proceedings over franchise rights, customer billing, operational control, and the ownership of electric distribution assets. The issue has also created uncertainty among consumers after both utilities asserted authority over the same service areas during the transition period.
Despite complying with the ERC's latest directive, Nordeco maintained that the legal controversy remains unresolved and vowed to continue contesting the implementation of Republic Act No. 12144 before the Supreme Court while continuing to provide electric service to consumers in the eleven municipalities of Davao de Oro that remain outside the coverage of the July 3 order.
