Court-backed takeover of Nordeco areas raises questions on utility competition and public accountability

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DAVAO CITY  (May 22) — A court-sanctioned expansion has cleared the way for Davao Light and Power Company Inc. to take over electricity distribution in key areas of Davao del Norte, marking a decisive shift in Mindanao’s power landscape—but also reigniting concerns over regulatory oversight, consumer choice, and the fate of cooperative-led service.

The expansion follows a Supplemental Writ of Possession issued by the Regional Trial Court Branch 2 in Tagum City on May 15, 2026, allowing Davao Light to assume control of remaining distribution assets previously operated by Northern Davao Electric Cooperative Inc. (Nordeco). 

The order effectively accelerates implementation of Republic Act No. 12144, which broadened Davao Light’s franchise coverage beyond Davao City into parts of Davao del Norte and Davao de Oro.

The court’s order cited Davao Light’s compliance with expropriation requirements under Rule 67 of the Rules of Court, including the required deposit for possession—procedural safeguards meant to balance state-backed expansion with property rights. 

A Notice to Vacate has also been served to Nordeco as transition activities begin.

Davao Light said it has begun taking over substations and distribution facilities and assured consumers of uninterrupted service.

“Davao Light remains committed to ensuring a smooth, orderly, and lawful transition process,” the company said, amid expectations of operational overlap and coordination with existing field personnel.

Yet beyond the technical transition lies a deeper tension: the rapid consolidation of power distribution under a single franchise raises questions about market concentration in a sector traditionally balanced between cooperatives and private utilities. 

Nordeco’s displacement effectively reduces the role of cooperative governance in areas where member-consumers historically had representation in utility decision-making.

The transition also highlights the expanding role of judicial mechanisms in determining utility control. 

While the courts have upheld the legality of the franchise expansion, the pace of implementation has left limited room for broader public consultation in affected communities—particularly on issues such as service pricing, infrastructure integration, and long-term accountability.

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