Davao Light pushes forward as SC upholds franchise expansion

Davao Light and Power Co., Inc. is set to move ahead with its franchise expansion after the Supreme Court of the Philippines dismissed petitions questioning the constitutionality of Republic Act No. 12144.

The petitions were filed by Northern Davao Electric Cooperative, Inc. (NORDECO), which sought to nullify the law and halt its implementation. However, the High Court denied the petitions and did not issue a temporary restraining order, effectively clearing the way for the measure to be fully enforced.

Republic Act No. 12144 expands Davao Light’s franchise area, authorizing the company to construct, operate, and maintain electric distribution facilities in newly covered territories. The law was enacted to enhance the quality and reliability of power services in parts of Northern Davao, while ensuring that operations, rates, and services remain subject to regulatory oversight by the Energy Regulatory Commission.

The measure also outlines a structured transition process to prevent prolonged overlap between distribution utilities operating in the same areas.

Davao Light President and Chief Operating Officer Enriczar Tia said the company is ready to engage NORDECO in discussions to ensure a smooth turnover of services.

“We look forward to meeting with NORDECO to discuss the transition process. We aim to work together to ensure an orderly handover of services and a seamless experience for consumers in the expanded franchise area,” Tia said.

The company reiterated that maintaining uninterrupted and dependable electric service remains its top priority. It also pledged to comply with all legal and regulatory requirements as it prepares to assume its expanded role.

On February 25, Davao Light formally took over electric distribution operations across the entire Island Garden City of Samal (IGaCoS). The transition followed the lawful turnover of assets previously managed by NORDECO, facilitated by the Sheriff of the Regional Trial Court–Panabo Branch 4.

Court records indicate that the transfer stemmed from a January 23, 2026 ruling granting Davao Light possession of NORDECO’s assets in IGaCoS. A Notice to Vacate and Writ of Possession were subsequently served on February 19, 2026, paving the way for the official handover.

Under Republic Act No. 12144, Davao Light’s expanded franchise now includes IGaCoS, the rest of Davao del Norte, and Davao de Oro. The Supreme Court’s January 14, 2026 decision affirming the law’s validity solidified the company’s authority to assume control in these areas.

With the legal hurdles cleared, Davao Light said it will begin full preparations to serve the additional communities, including continued investments in infrastructure and service improvements. The company also emphasized close coordination with regulators, local government units, and stakeholders to ensure a stable and orderly transition for consumers.