New law allowing Davao Light to operate in NORDECO areas ‘unconstitutional’

DAVAO CITY (MindaNews/Apr 10) — The Northern Davao Electric Cooperative, Inc. (NORDECO) has declared its intent to pursue legal actions following the passage of a law that reassigns portions of its franchise areas to the Davao Light and Power Company (DLPC).

Anti-Davao Light protest in Tagum City in February 2025. MindaNews file photo by CHRIS V. PANGANIBAN

In an official statement posted Thursday afternoon, NORDECO asserted that Republic Act No. 12144 infringes on its existing and legally granted franchises, which it claimed remain valid and binding under Presidential Decree No. 269, the Electric Power Industry Reform Act (EPIRA), and the National Electrification Administration (NEA) Reform Act—which the electric cooperative said are the reasons that made the new law “unconstitutional.”

R.A. 12144, which lapsed into effect on April 6, 2025, reassigns the electric franchise areas of Tagum City, the Island Garden City of Samal, and several municipalities in Davao del Norte and Davao de Oro to DLPC.

It was not signed by President Ferdinand “Bongbong” R. Marcos Jr., but became law through inaction, as permitted under Article VI, Section 27(1) of the 1987 Constitution, which stipulates that a bill will lapse into law if the chief executive does not act on it within 30 days as prescribed by the Constitution.

The House of Representatives approved the legislation on its third and final reading on December 10, 2024, followed by the Senate’s passage of the measure on February 4, 2025. The bill aims to enhance power distribution across the affected areas in the region.

In the same statement, NORDECO argued that the law was passed without “proper consultation and regulatory procedures.”

It said that allowing such changes through legislation alone sets a dangerous precedent and could “undermine” the legal framework of electric cooperatives nationwide and the communities they serve.

Now calling on its member-consumer-owners for continued support, NORDECO stated that it might pursue legal action.

“We shall pursue all available legal remedies to defend the sanctity of the cooperative’s franchises,” the cooperative said.

“We will not yield even an inch of NORDECO’s franchises,” it added.

NORDECO currently serves “over 80,000 households in 631 underserved sitios” in 16 municipalities and two cities in Davao del Norte and Davao de Oro, based on its statement released in January.

With the passage of the law, all of NORDECO’s service areas — namely Tagum City, the Island Garden City of Samal, and the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in the province of Davao del Norte, as well as Compostela, Laak, Mabini, Maco, Maragusan, Mawab, Monkayo, Montevista, Nabunturan, New Bataan, and Pantukan in the province of Davao de Oro — will be completely turned over to Davao Light.

Meanwhile, in a press conference held last March, DLPC President and COO Enriczar Tia said they would approach future clients with “empathy,” amid the “anticipated resistance” of some NORDECO members.

“I understand there is resistance, that’s normal — but our position really is, we will not move in there like we are hostile. We will sit down with NORDECO once we transition, and talk about it,” Tia said.

On Tuesday, the Davao Consumer Movement, a nonprofit organization advocating for Davao Light’s franchise expansion in Davao del Norte and Davao de Oro, said the law was a step toward improved electric service in the region.

Ryan Amper, the movement’s convenor, earlier contested NORDECO’s claims of unconstitutionality regarding the DLPC franchise expansion, citing a Supreme Court ruling (G.R. No. 264260), which states that electric cooperatives do not have an “exclusive constitutional right” to a franchise within their coverage areas.

Amper also highlighted the difference in electricity reliability between DLPC and NORDECO, pointing to data from the Department of Energy showing that DLPC’s average annual brownout duration was significantly lower (209 minutes) compared to NORDECO’s (242.33 minutes).

Davao Light, an Aboitiz-led electric company based in Davao City, currently serves Davao City; Panabo City and the municipalities of Carmen, Dujali, and Sto. Tomas in Davao del Norte. (Ian Carl Espinosa / MindaNews)