Davao Light: No immediate takeover of coop’s area

PROTEST MARCH Protesters, on Feb. 4, 2025, march against the expansion of the franchise area of Davao Light and Power Company (DLPC) to include areas in Davao del Norte and Davao de Oro currently being served by Northern Davao Electric Cooperative, which has since filed a case before the Supreme Court questioning constitutionality of Republic Act 12144, which took effect on April 6 granting the expanded franchise to DPLC. —CHRIS V. PANGANIBAN

SAN FRANCISCO, AGUSAN DEL SUR — The Aboitiz-owned Davao Light and Power Company (DLPC) tried to appease wary consumers in its newly-expanded franchise area by explaining it would still take at least two years before the power firm could operate in their localities.

Although Republic Act (RA) 12144 expanding the DLPC franchise in Davao del Norte and Davao de Oro took effect on April 6, the power firm said it could not immediately take over the areas currently being served by the Northern Davao Electric Cooperative (Nordeco).

“Davao Light recognizes that legal and regulatory procedures will require more time to take its due course,” said a statement released by the company on its Facebook page. “We undertake to respect and align with these processes and their timelines.”

The company said its primary focus at the moment would be to ensure the continued delivery of reliable and quality service to its existing customers in its current franchise area.

“We are dedicated to transparent communication and maintaining the standards they expect throughout this period,” said the company in a statement.

‘Constitutional flaws’

Lawyer Daniel Campoamor, Nordeco’s legal counsel, also affirmed Nordeco still has a two-year grace period, as DLPC still needed to secure a Certificate of Public Convenience (CPC) before any takeover could legally proceed.

Nordeco is also preparing to file a petition for a temporary restraining order to halt DLPC’s implementation of the law, pending the Supreme Court’s ruling on its petition questioning RA 12144’s constitutionality.

CANDLE LIGHTING Members of consumer groups light candles in Tagum City during a protest in March to oppose the privatization of power cooperatives, similar to the takeover of Davao Light and Power Co. of the franchise area of Northern Davao Electric Cooperative. —NORDECO PHOTO

During Nordeco’s general assembly on April 12, Nordeco director Felix Sayon criticized Davao del Norte Gov. Edwin Jubahib and Rep. Pantaleon Alvarez for backing the law that stripped the electric cooperative of its long-held franchise in favor of a private utility firm.

The new law extends DLPC’s franchise to include Tagum City, the Island Garden City of Samal and 15 towns in Davao del Norte and Davao de Oro currently being served by Nordeco.

RA 12144 overrides RA 11515, which had previously limited DLPC’s 25-year franchise to Davao City, Panabo City and the towns of Carmen, Braulio E. Dujali and Sto. Tomas in Davao del Norte.

Association of Philippine Electric Cooperatives Partylist Rep. Sergio Dagooc described the new law as “riddled with constitutional flaws” as he pledged support for Nordeco’s legal efforts, pointing out that Nordeco holds a franchise valid until 2028 for its mainland operations and until 2033 for Samal Island.

Dagooc and Philreca Partylist Rep. Presley De Jesus pointed to the “non-impairment clause” under Article III, Section 10 of the Constitution and Section 27 of the Electric Power Industry Reform Act, which provided that existing franchises of electric cooperatives should be allowed to continue up to their full duration.

For Elvera Alngog, Nordoco’s acting general manager, their court challenges against DLPC’s takeover of their franchise area was “just the beginning of our legal battle.”

Nordeco, created in 1971 under RA 6038, was established to deliver affordable electricity to underserved and remote communities. As of now, Nordeco claims to have energized 16 towns and two cities in Davao del Norte and Davao de Oro.

“This is not just about a franchise,” said Nordeco board secretary Ernido Malone. “This is about defending decades of service to communities long overlooked by large corporations.”