Nordeco urged to block Davao Light’s takeover of assets

Northern Davao Electric Cooperative, Inc. (Nordeco) still has a fighting chance to reclaim its franchise areas from a unit of Aboitiz Power Corp., according to the Philippine Rural Electric Cooperatives Association, Inc. (Philreca).

In a statement, Philreca said on Friday that Nordeco “has the right” to pursue a temporary restraining order against Davao Light and Power Co., the utility unit of Aboitiz Power.

The group said Nordeco still has a “valid franchise term” until 2028 for the mainland areas and 2033 for the Island Garden City of Samal.

“Serving for more than four decades, Nordeco remains a steadfast partner of the national government for total electrification,” the group said.

Based on its website, Nordeco delivers power to 16 towns and two cities in Davao de Oro and Davao del Norte.

Davao Light is the country’s third-largest power distribution firm. It delivers electricity to customers in Davao City, Panabo City and the towns of Carmen, Dujali and Sto. Tomas in Davao del Norte.

However, a court ruling granted Davao Light to gain possession of Nordeco assets in Samal Island.

The government likewise cleared Davao Light’s expansion in Davao del Norte and Davao de Oro.

Philreca argued that all power cooperatives operate as a regulated entity under the law, supervised by top energy regulators.

Aboitiz Power did not respond when sought for comments.

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But earlier this month, Davao Light expressed openness to working with Nordeco for an “orderly handover of services and a seamless experience for consumers.”

Last week, the company also completed its submarine cable laying to connect Samal Island to Davao City.

Davao Light said this development was the initial step for the area’s “long-awaited integration into the mainland’s power grid after years of service woes.”

Aside from Davao Light, AboitizPower also has Visayan Electric servicing Cebu City and its neighboring communities; Cotabato Light in Cotabato and select areas in Maguindanao; and EnerZone Group for homes and businesses in Subic in Zambales, Lima in Batangas, and Balamban and Mactan in Cebu.