The Myth of Coexistence: Why Nordeco Must Finally Honor the Law

The Myth of Coexistence: Why Nordeco Must Finally Honor the Law The power distribution transition in areas in Davao del Norte and Davao de Oro have reached a critical bottleneck, as seen in the current situation gripping the Island Garden City of Samal. Following the court-ordered physical takeover by Davao Light and Power Company (Davao Light) of the distribution assets held by the Northern Davao Electric Cooperative (Nordeco) in Samal, the latter continues to assert that it remains the legal franchise holder and can still operate and collect electricity bills from customers in the island. The Supreme Court already affirmed the constitutionality of Republic Act (RA) 12144, which explicitly outlines a structured, maximum 24-month transition period. The law authorizes Nordeco to “operate for a period of not longer than two (2) years from the approval of the expanded territory of this legislative franchise.” However, through its noncooperation, Nordeco is deliberately confusing the public, violating the spirit of RA 12144, and prolonging the suffering of the consumers. The law lapsed into effect in April 2025, meaning 11 months of the transition period have already elapsed. Instead of preparing for a peaceful and cooperative handover, Nordeco has resisted the turnover at every legal and physical opportunity, poising itself further away from a seamless transition. This tactical defiance is a desperate move to maintain cash flow; arguably an act of desperation designed to obscure their financial collapse. They are terrified of losing their captive customer base while being left holding massive uncollected debts, which would definitively sink their already crippled financial standing. The cooperative’s financial ruin is no secret. In September 2025, the Independent Electricity Market Operator of the Philippines (IEMOP) suspended Nordeco from participating in the Wholesale Electricity Spot Market (WESM) due to a staggering unpaid debt of P318.4 million1 — one of the highest arrears of any market participant in the country. Adding to Nordeco’s legacy of mismanagement, the promised submarine cable project was never delivered, forcing the Island Garden City of Samal to rely on expensive and noisy generator sets. In contrast, Davao Light has recently begun and is financing a new submarine cable project in the Pakiputan Strait, targeted for completion within the year. Nordeco is pushing a narrative that overlapping franchises allow two utilities to operate simultaneously to “promote healthy competition”. However, this parallel operation is not meant to last forever, considering the mandated two-year transition period. There is absolutely nothing in RA 12144 or the recent Supreme Court ruling that authorizes permanent coexistence in the area. Nordeco’s posturing has created a legally unsettled environment. This tactical defiance seeds severe confusion among the customer base, leaving ordinary citizens unsure of who to pay and whose services to rely on, as Nordeco actively warns consumers against transferring to Davao Light to avoid “billing complications”. The people bearing the brunt of this confusion are the exact same consumers who have suffered for years. They are forced to pay exorbitant prices, with Nordeco’s residential rates climbing to an average of 13.52/kWh in the first two months of 2026, making it one of the highest in the region. Furthermore, consumers continue to endure numerous, lengthy, and unannounced blackouts that destroy appliances and cripple local businesses. The legal avenues for resistance have been exhausted. The Supreme Court has upheld the law and a local court has already issued a Notice to Vacate and Writ of Possession in Samal. While Nordeco may have motions for reconsideration pending with the courts, which is totally within their rights, these cannot stop and obstruct the implementation of the law. It is time for Nordeco to end this hopeless display of defiance. Stop the stalling tactics and cooperate with the mandated transition. Stop confusing the public with narratives contrary to the expressed law. It is time for Nordeco to step aside gracefully, embrace the buyout mechanisms designed to place funds in escrow to settle their massive debts, and finally do what is right for the member-consumer-owners who deserve the affordable, reliable electricity that has eluded them for so long.