Davao Light, Nordeco clash over power distribution in Samal

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By CHRIS V. PANGANIBAN

SAN FRANCISCO, Agusan del Sur — The Davao Light and Power Company (DLPC) and the Northern Davao Electric Cooperative (Nordeco )have traded claims over who has the legal authority to distribute electricity in the Island Garden City of Samal (Igacos), with both sides citing laws, court rulings and pending legal motions to support their positions.

In a March 9 statement, Davao Light reiterated that its mandate to serve electricity consumers in Samal is backed by Republic Act No. 12144, which expanded the company’s franchise area to include the island city. The company said the law had been upheld by the Supreme Court of the Philippines, affirming the validity of the franchise expansion.

The Aboitiz-owned utility also cited a writ of possession issued by a regional trial court covering electric distribution assets in Igacos, along with a provisional Certificate of Public Convenience and Necessity granted by the Energy Regulatory Commission authorizing it to begin serving parts of Davao del Norte, including Samal, and Davao de Oro.

Davao Light said the transition of power infrastructure had already begun, noting that distribution poles were installed in Samal in February. It also disclosed that it had entered into a power supply agreement with Phil-Power Ventures that took effect on Feb. 25 to provide electricity for households and businesses on the island.

The company urged Nordeco’s management and board to stop what it described as misleading information and to allow what it called a “necessary, peaceful and purposeful transition” mandated by Republic Act 12144.

“We urge them to respect the resolution of the Supreme Court and the orders of the RTC and the ERC,” the company said, adding that residents should rely on official announcements as authorities work to ensure an orderly shift in services.

Nordeco, however, disputed several of Davao Light’s claims, saying key legal and regulatory issues remain unresolved.

In a March 10 statement, the electric cooperative said the Supreme Court decision cited by Davao Light has not yet attained finality because it filed a motion for reconsideration on March 5.

“Until the decision becomes final and executory, Nordeco’s existing franchises remain in force,” the cooperative said, noting that its congressional franchise runs until 2033.

Nordeco also argued that power distribution franchises may coexist in the same service area under Section 11, Article XII of the 1987 Constitution, citing legal precedents involving electric cooperatives in Iloilo and MORE Electric and Power Corporation.

The cooperative also questioned the scope and implementation of the writ of possession cited by Davao Light. It said several motions it filed before a regional trial court in Panabo remain pending, including a motion for reconsideration dated Feb. 6 seeking to reverse the order granting the writ, an omnibus motion filed Feb. 20 asking the court to lift the notice to vacate and the writ of possession, and a Feb. 25 motion seeking a status quo order while the legal issues are being resolved.

Nordeco also claimed that documents attached to court filings indicate the writ covers distribution line assets in only 26 of Samal City’s 46 barangays.

The cooperative further raised questions about Davao Light’s provisional authority from the Energy Regulatory Commission, saying the certificate carries conditions that must first be met and that regulatory proceedings remain ongoing.

Davao Light maintained that the writ of possession remains enforceable despite the pending motions.

In an online interview, Fermin Edillon, head of reputation enhancement at Davao Light, said the order had already been implemented in accordance with legal procedures.

“The writ, a valid court order, was implemented according to legal procedures and remains enforceable unless restrained or reversed by a competent court,” he said.

The exchange of statements came after Nordeco advised its member-consumer-owners in Samal to continue paying their electricity bills to the cooperative while the dispute is unresolved.

The standoff between the two utilities over electricity distribution in Samal has stretched for more than a decade and intensified after the passage of Republic Act 12144 expanding Davao Light’s franchise area to include the island city across the gulf from Davao City.

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