Davao Light and Power Company (Davao Light) on Monday announced that the Supreme Court (SC) has denied the motion for reconsideration filed by the Northern Davao Electric Cooperative, Inc. (NORDECO) and dismissed several petitions challenging the expansion of Davao Light’s franchise under Republic Act No. 12144, as well as the expropriation of distribution assets in its expanded service areas.
In a statement, Davao Light said the Supreme Court En Banc, in a Resolution dated April 29, 2026, denied NORDECO’s motion for reconsideration filed on March 5, 2026, which sought to overturn the implementation of Davao Light’s expanded franchise covering areas previously served by the electric cooperative.
The High Court also dismissed petitions filed by NORDECO questioning the expropriation of its distribution assets in the Island Garden City of Samal, Tagum City, and several municipalities in Davao del Norte.
According to Davao Light, the Supreme Court reaffirmed its earlier ruling that Congress has the authority to expand the franchise of a public utility, even if the affected areas are already being served by another utility.
The Court also reiterated that a public utility franchise is a privilege granted by the State and does not give its holder an exclusive right to operate within a specific territory.
The resolution further stated that Congress did not violate NORDECO’s right to due process, noting that the cooperative had been given the opportunity to participate in legislative deliberations on the franchise expansion.
It also ruled that the expanded franchise did not impair NORDECO’s existing contractual obligations with its power suppliers.
The Supreme Court likewise affirmed that Davao Light may acquire the distribution assets necessary to operate within its expanded franchise through expropriation, provided that proper judicial proceedings are followed and just compensation is paid in accordance with the law.
In the same resolution, the Court dismissed NORDECO’s petition questioning the March 10, 2026 Order of Expropriation issued by the Regional Trial Court in Tagum City, as well as another petition challenging the orders and writ of possession issued by the Regional Trial Court in Panabo City.
Davao Light President and Chief Operating Officer Engr. Enriczar T. Tia welcomed the ruling, saying it provides legal certainty as the company continues to implement Republic Act No. 12144.
“The Supreme Court’s resolution provides further clarity on the legal issues surrounding Republic Act No. 12144,” Tia said.
“As we move forward, our priority remains the same: to provide safe, reliable, and dependable electric service to the communities we serve. We will continue to perform our responsibilities in accordance with the law while working closely with government agencies, local government units, and other stakeholders to ensure that the transition is carried out in an orderly and responsible manner,” he added.
Tia said Davao Light will continue implementing Republic Act No. 12144 by strengthening its distribution system, improving service reliability, and ensuring customers across its expanded franchise area receive safe and dependable electric service while complying with government directives and applicable laws.
