NORDECO disputes Davao Light claims on Samal power takeover

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Employees of Northern Davao Electric Cooperative (NORDECO) wear shirts with a message on their backs calling for their cooperative’s retention against the planned takeover of Aboitiz-owned Davao Light and Power Company during their nightly prayer vigil at the lobby of their main office building in Tagum City. Photo courtesy of NORDECO

By CHRIS V. PANGANIBAN

SAN FRANCISCO, Agusan del Sur— — The Northern Davao Electric Cooperative (NORDECO) has disputed several claims made by Aboitiz-owned Davao Light and Power Company (DLPC) regarding the latter’s authority to distribute electricity in the Island Garden City of Samal (Igacos), saying key legal and regulatory issues remain unresolved.

In a press statement issued March 10, NORDECO responded to a social media post by Davao Light on March 9 asserting its mandate as the sole power distributor in the island city.

Davao Light earlier said its authority is anchored on Republic Act No. 12144, which expanded its franchise area, and a unanimous ruling of the Supreme Court of the Philippines upholding the law’s constitutionality.

But NORDECO said the high court decision has not yet attained finality.

The electric cooperative said it filed a motion for reconsideration on March 5, which remains pending before the Supreme Court.

“Until the decision becomes final and executory, NORDECO’s existing franchises remain in force,” the cooperative said, adding that these may coexist with Davao Light’s franchise under Section 11, Article XII of the 1987 Constitution.

The cooperative cited jurisprudence involving the Iloilo Electric Cooperative I, Iloilo Electric Cooperative II, Iloilo Electric Cooperative III, and MORE Electric and Power Corporation, which it said clarified the possibility of overlapping or coexisting distribution franchises.

Writ of possession

Davao Light also said a regional trial court had issued a writ of possession covering all electric distribution assets in Igacos.

NORDECO, however, said the writ remains subject to several pending motions filed before the court.

It also said that based on annexes submitted in court filings by Davao Light, the writ pertains only to distribution line assets in 26 out of the city’s 46 barangays, not the entire island.

ERC authority questioned

The cooperative also raised questions about Davao Light’s provisional authority from the Energy Regulatory Commission (ERC).

Davao Light earlier said it had secured a provisional Certificate of Public Convenience and Necessity allowing it to begin serving parts of Davao del Norte, including Igacos, and Davao de Oro.

But NORDECO said the provisional certificate carries conditions that must first be met before full implementation.

It added that proceedings before the ERC are still ongoing, including hearings related to compliance with those requirements.

Power supply deal

NORDECO also questioned Davao Light’s reported power supply agreement with Phil-Power Ventures, which the private utility said would provide electricity for distribution to residents and businesses on the island.

The cooperative said the emergency power supply arrangement should be viewed in relation to the transition provisions of Republic Act 12144.

Under Section 21-A of the law, NORDECO said it remains authorized during the interim period to continue operating the existing distribution system and implement its existing power supply agreements with generation companies approved by the ERC.

This arrangement, the cooperative said, will remain in place until the new franchise holder establishes or acquires its own distribution system and fully takes over operations.

Protecting member interests

NORDECO said it issued the clarification to address what it described as “misleading information” circulating about the issue.

The cooperative also said it remains committed to protecting the interests of its member-consumer-owners and ensuring the continued delivery of electricity service while the legal and regulatory issues are being resolved.

The dispute between the two utilities over electricity distribution in Samal has spanned more than a decade and intensified following the passage of Republic Act 12144 expanding Davao Light’s franchise area.

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