BY ALEX ALAGON
THE PARTNERS For Affordable & Reliable Energy (PARE) is calling on the Northern Davao Electric Cooperative (Nordeco) to be transparent toward its member-consumer owners following the debt it incurred with the Interim Electricity Market Operator of the Philippines (IEMOP).
Public records from the IEMOP show that Nordeco was suspended from the Wholesale Electricity Spot Market (WESM) effective September 25, 2025, pursuant to WESM Rules Clause 3.15.8, due to unpaid energy settlement obligations. Media reports and consumer advocates have cited figures from IEMOP indicating that Nordeco’s arrears have reached over ₱318 million and were among the largest recorded obligations in WESM as of the second half of 2025.
Nordeco refuted these claims, saying these were “fake news” despite being published on IEMOP’s official website.
Meanwhile, in a letter dated October 29, 2025, the IEMOP said Nordeco has not been disconnected and continues to source energy from WESM.
If Nordeco insists that these reports are ‘fake news’ or misleading, then the cooperative must stop speaking in generalities and start presenting figures. Consumers deserve a detailed line-by-line explanation, how much is really owed, what has been paid, and what is the concrete settlement plan so that these liabilities are not quietly passed on to households and small businesses.”
At the same time, PARE notes that Energy Regulatory Commission (ERC) and the National Electrification Administration (NEA), as the energy regulators, are accountable for inefficiencies of electric cooperatives that led to the suffering of consumers.
Franchise war while consumers suffer
The WESM controversy comes on top of long-standing complaints about brownouts and high power rates in Nordeco’s franchise areas. Business groups and local stakeholders have openly opposed any move to renew Nordeco’s franchise, citing poor service quality and the
economic damage caused by outages and high electricity costs. Supporters of Davao Light’s expansion under Republic Act No. 12144 argue that consumers would benefit from more reliable and lower-cost power under a different distribution utility.
“While Nordeco and Davao Light trade legal briefs and press releases, people on the ground are losing livelihoods, suffering hours in darkness, and paying one of the highest rates in the region,” Satur said. “This is no longer just a technical or legal issue, it is a political and regulatory failure.”
Regulators cannot stay neutral
PARE underscored that the ERC and the NEA have clear mandates to protect consumers and enforce a least-cost, reliable power supply under the Electric Power Industry Reform Act of 2001 and related issuances.
ERC and NEA cannot remain on the sidelines while consumers are used as collateral in a franchise war. Before any franchise renewal, extension, or new arrangement is even considered, regulators must publicly answer three non-negotiable questions.
PARE called on ERC and NEA to issue a clear, public statement on:
1. WESM obligations and suspension – the verified amount of Nordeco’s WESM arrears, the status of payments, and the agreed pathway to full settlement, in coordination with IEMOP.
2. Compliance with standards – Nordeco’s performance audit vis-à-vis technical, financial, and service benchmarks, based on audited data and consumer complaints, not competing narratives.
3. Consumer safeguards and roadmap towards reliable power, concrete protections to ensure that any decision on Nordeco’s franchise or any transition arrangement will prioritize reliable, least-cost power and shield consumers from paying for mismanagement and unresolved debts.
Put consumers at the center
PARE emphasized that the core issue is not which company’s logo appears on the bill, but whether families and businesses can depend on power that is both reliable and affordable.
Regulators, energy players, and political leaders must be reminded: your mandate is to protect consumers, not franchises. If you are tired of this war for power, where people are the ones who lose, speak up. Ask your electric cooperative or distribution utility to explain their WESM exposure, their power supply contracts, and why your rates are so high, and demand that ERC and NEA take a firm, public stand before any franchise decision is made.
(Partners for Affordable and Reliable Energy (PARE), a non-government, non-partisan consumer advocacy group that promotes affordable, reliable, and transparent electricity for Filipino consumers.)
Nic Satur Jr
chief advocate officer
PARE
nsaturjr.pare@gmail.com
09271448048
THE BILL seeking to renew the franchise of the Northern Davao Electric Cooperative (Nordeco) is tone deaf to the overwhelming clamor of the people of Davao del Norte and Davao de Oro.
Across social media, consumers have voiced legitimate frustrations over Nordeco’s inefficient services and exorbitant power rates. Instead of addressing these concerns, Nordeco dismisses them as “trolls,” silences critics by blocking accounts, or disables comment sections altogether. These are not trolls; they are real families and businesses struggling with unreliable service and rising costs.
Residents and entrepreneurs, particularly in the Island Garden City of Samal, have reported broken appliances, disrupted business operations, and livelihoods put at risk. These are everyday consequences of Nordeco’s failure to deliver dependable power.
The filing of House Bill 7006 by APEC Party-list Rep. Sergio Dagooc and PHILRECA Rep. Presley de Jesus only underscores where their priorities lie: protecting the interests of electric cooperatives rather than the consumers they are meant to serve. It should also be noted that lawmakers from Davao del Norte and Davao de Oro – Rep. Maricar Zamora, Rep. Jhong Ceniza, Rep. Oyo Uy, and Rep. JM Lagdameo – are not sponsoring this bill.
While the bill’s authors have long ties to electric cooperatives, they do not fully grasp the realities faced by consumers in Davao del Norte and Davao de Oro. Their focus should be on fixing the problems within their own cooperatives, which continue to face issues, rather than forcing another chance for Nordeco on communities that have already endured decades of poor service.
After years of broken promises, asking the public to give Nordeco “another chance” is an insult to households and businesses who have suffered enough. Consumers are tired. We have been promised improvement for far too long, yet the reality remains the same: high rates, poor service, and broken trust.
Lawmakers from Davao del Norte and Davao de Oro must stand with their constituents and reject this bill. As representatives of the people, they must listen to the voices of those who elected them. What consumers want is simple: affordable, reliable power services that support households and livelihoods. Anything less is unacceptable.
Ryan Amper
Convenor
Davao Consumer Movement
0905-5634083
THE DAVAO del Norte Electric Cooperative (Nordeco) urged its consumers against switching to Davao Light and Power Co. as the certificate of public convenience and necessity (CPCN) is still “provisional.”Nordeco announced Tuesday, Jan. 20, that it continues to be a legitimate electric distribution utility to Davao del Norte and Davao de Oro.“Busa, giawhag ang atong mga pinanggang miyembro-konsumante-tag-iya sa padayon sa pagsuporta sa atong Nordeco,” it said.“Dili magpadala sa mga haylo nga magpakonek sa Davao Light aron malikayan ang kasamok ug kahasol,” it stressed.Nordeco reiterated that the law mandating expansion of Davao Light’s franchise in their areas is not yet final.“Ang balaud sa pag-expand sa Davao Light ngadto sa Nordeco franchise area, dili pa final kay gipasaka pa sa Supreme Court ang pag-question sa maong bala-udnon,” Nordeco said. It stressed that the hearing for the application of CPCN is still ongoing. “Ug gani, sa milabayng hearing adtong Enero 13, 2026, Dili hingit ug ligdong ang tubag sa Davao Light sa dihang gipangayuan sila og pasalig nga dili motaas ang taripa sa kuryente ug wala nay brownout kung mosulod na sila,” it stressed.In an en banc commission meeting on December 12, the ERC granted provisional authority (PA) approval for Davao Light’s CPCN. The ERC authorized Davao Light to start connecting customers in Davao del Norte and Davao de Oro, as stated in Republic Act 12144.Davao Light also urged the consumers that the decision allows them to accept applications for connections.Despite this, Nordeco continues their fight over the contested area.On Dec. 22, 2025, APEC Partylist Rep. Sergio Dagooc and PHILRECA Rep. Presley de Jesus filed House Bill 7006, granting Nordeco a franchise to construct, install, establish, operate, own, manage and maintain distribution systems for the conveyance of electric power to the end users in Davao del Norte and De Oro.This includes municipalities of Compostela, Monkayo, New Bataan, Montevista, Maragusan, Nabunturan, Mawab, Laak, Maco, Mabini And Pantukan in the province of Davao De Oro And municipalities of Asuncion, New Corella, Kapalong, San Isidro, and Talaingod in the Province Of Davao Del Norte and the City Of Tagum.In June 2025, Nordeco filed before the Supreme Court a petition for certiorari and prohibition with prayer for writ of preliminary injunction and temporary restraining order to declare Republic Act 12144 as “unconstitutional.”RA 12144, which lapsed into law on April 6, officially expands Davao Light’s franchise area to include Davao del Norte and Davao de Oro.
THE TAGUM City Chamber of Commerce welcomed the issuance of a provisional certificate of public conveyance and necessity (CPCN) by the Energy Regulatory Commission (ERC) to Davao Light and Power Co.
“This is one big step for customers of Tagum City and Davao del Norte who aspire for better service and lower electricity rates,” the statement said.
The ERC has granted provisional approval for Davao Light to start connecting customers in Davao del Norte and Davao de Oro, as stated in Republic Act 12144.
TCCCI president Engr. Sean A. Gellangarin said with the PA, Davao Light can now connect customers and collect payments for its service, subject to final approval by the ERC.
“While we understand Northern Davao Electric Cooperative (Nordeco) is still putting up resistance and going to court to stop Davao Light from taking over and to stop customers from switching – the business sector is still hoping for the NordecoBoard of Directors to initiate a level-headed negotiation and peaceful transition from Nordecoto Davao Light,” he said.
He stressed that it’s not only the business sector that’s praying for a smoother transition, but also the consumers.
“We all deserve lower rates and better service to support business, improve lives, and build a better economy for Tagum City and Davao del Norte,” he added.
In an en banc commission meeting on December 12, ERC granted Provisional Authority (PA) approval for Davao Light’s CPCN.
“We welcome this decision of the ERC. For months, Davao Light has laid the foundation of our network in our expanded areas. With this decision, we can now accept applications for connections,” DLPC president and COO Enriczar Tia said.
Customers who would want to transfer to Davao Light may apply online through links to the application process on the Davao Light Facebook page, website, and other channels.
DAVAO Light and Power Co., Inc. (Davao Light) informs the public that it is now accepting new line applications for significant areas in Kapalong, Davao del Norte, which are covered by the company’s newly-built distribution line.
The 12-kilometer distribution line extension from Barangay Pag-asa to the Municipal Hall, in the Municipality of Kapalong, is part of the distribution utility’s ongoing efforts to bring reliable and accessible electricity service to more households and businesses in the community in its expanded franchise areas.
“We have been building our distribution line because local government unit (LGU) leaders and customers are demanding that we do. This is to serve the customers’ interest, and we hope not to delay any further, but we have no choice at the moment,” Davao Light president and COO, Enriczar Tia, said.
“But we are still hopeful that the management and board of the Northern Davao Electric Cooperative, Inc. (Nordeco) will sit down with us and enter into negotiations for their assets, so we can smoothly transition and connect as many customers as we can,” he added.
Davao Light said it intends to build more lines in the coming months, but is also realistic about the public’s expectations.
“We can build our own lines, but it will take years before we can cover our expansion area. We are hoping for Nordeco’s cooperation to make things faster,” said Tia.
To make the process easier and more convenient for residents, online pre-registration is available, allowing applicants to start their applications in advance and minimize the need for repeated visits.
The utility company reiterates that there is no connection fee, and customers are not charged for the meter base, current transformer box, and service wires, reinforcing its commitment to a transparent and customer-friendly service.
In line with this commitment, the company also supports the Sitio Electrification Project, which aims to energize 100% of identified sitios by providing access to electricity through the installation of distribution poles, wires, and transformers—at no cost to the customers.
While Davao Light wants to serve the whole of Davao del Norte and Davao de Oro, it can only do so much, given NORDECO’s resistance to the negotiation of its assets. The company apologizes that it cannot immediately respond to the clamor of the public for cheaper and more reliable power, as it takes time to put up new structures and connect everyone to the company’s line. Although the company is willing, the process will be expedited with the full cooperation of NORDECO.
The distribution utility company also appeals to the board of directors of Nordeco to accept our request for a Joint Transition Committee and to work closely with all stakeholders during this transition. This cooperation will help ensure a smooth and orderly process of the transition, which is expected to benefit the entire community, especially customers.
Davao Light cannot take over the entire area covered by RA 12144 just yet, with Nordeco’s continued refusal to negotiate. For now, the utility company has only been able to string a connection in the Municipality of Kapalong due to its proximity to the original areas of Davao Light.
With open communication and coordination, Davao Light assures residents that the transition will be smooth, guided by the shared goal of providing safe, dependable, and efficient electricity service for Davao del Norte and Davao de Oro.
Davao Light and Power Co. (DLPC) has announced its readiness to serve consumers in its expanded area after reporting to have completed a major portion of its ongoing 12 kilometers overhead lines in Kapalong Municipality – as part of its compliance with Republic Act 12144.
“This is part of our preparation to serve customers in our expanded area in Davao del Norte. We look forward to getting approvals from regulatory agencies so we can finally connect households and establishments as soon as we can,” DLPC President and COO Enriczar Tia said.
Kapalong will be the first to connect to DLPC, considering its proximity to the municipality of Sto. Tomas, which is already being served by the private utility. Tia said another line will be constructed coming from the NGCP substation in Maco municipality. This line will connect to Tagum.
Tia said customers of the expanded areas will have lower electricity rates and will also experience the world-class service of DLPC. Under the one franchise-one rate rule, customers in the expanded areas will also enjoy the same rates as the existing customers of DLPC.
As of November 2025, Davao Light’s overall residential rate is P10.06 per kWh, while NORDECO residential customers paid P12.90 per kWh, or a difference of almost P3.00. For customers consuming an average of 120 kWh per month, the difference amounts to almost P350.00 less for DLPC customers. This December, Davao Light’s overall residential rate reduced to P9.7135/kWh. NORDECO has not yet released its December rates.
Tia noted the resistance of Northern Davao Electric Cooperative (NORDECO), which has vowed not to cooperate in any transition to Davao Light even as ordered by RA 12144. NORDECO has also filed a case questioning the law with the courts.
In a statement, NORDECO insists the takeover of Davao Light is “not proper, not right, and, above all, against the law.” They have also asked the DILG to stop public officials, particularly Davao del Norte Governor Edwin Jubahib and former Samal Mayor (now PB Board Member) Al David Uy, from commenting on the performance of NORDECO as it is “beyond their expertise.”
“Hastening the transition process of Republic Act 12144… NORDECO would not cooperate with the transition process pending resolution of the petition it filed before the Supreme Court,” NORDECO acting general manager Elvera Alngog said in a letter to the provincial board.
Nevertheless, Davao Light is still hoping for a peaceful resolution with NORDECO.
“We still hope that NORDECO will sit down and negotiate with us, particularly in the sale of their assets,” Tia said. “Their continued resistance is admittedly causing a lot of delays on our timeline. We are still praying for their cooperation.”
DLPC is still awaiting the Certificate of Public Convenience and Necessity (CPCN), which will be issued by the Energy Regulatory Commission (ERC). The commission has already held an online hearing, which was also attended by customers and stakeholders at Tagum City on the matter last November 24, where NORDECO lawyers expressed their opposition. Tia said DLPC is willing to put up its own lines, substations, and poles, but it will take several years before it can serve all the customers in Davao del Norte and Davao de Oro. If NORDECO sells its assets, DLPC can then move in to upgrade the assets and start serving the public immediately.
THE DAVAO Light and Power Company (Davao Light) has yet to sit down with Northern Davao Electric Cooperative’s (Nordeco) on transition activities pending the decision from the Supreme Court.
“Unfortunately, we have yet to sit down with Nordeco because they are still waiting for the decision of the Court,” Engr. Enriczar Tia, Davao Light president and chief operating officer, said in a press conference on Monday at their Davao Light office.
In June, Nordeco filed before the Supreme Court a Petition for Certiorari and Prohibition with Prayer for Writ of Preliminary Injunction and Temporary Restraining Order to declare Republic Act 12144 as “unconstitutional.”
RA 12144, which lapsed into law on April 6, officially expands Davao Light’s franchise area to include Davao del Norte and Davao de Oro.
But Tia stressed that pending the court’s decision, the law is regular and executory.
He noted the extension of the poles in Kapalong and Tagum, Davao del Norte, is in line with the transition.
“We are making all these activities necessary for preparation. We cannot wait for the next two years before we act,” he said.
Tia added that they cannot proceed, considering the need for facilities such as poles, wires, and transformers, which the company has yet to complete.
He added that they offered to purchase the assets of Nordeco, but the latter did not agree to anything yet.
“What’s going on now is building facilities, but the fastest, hopefully, is for us and Nordeco to be able to agree that we purchase their assets,” he said.
Tia revealed the company has undergone a hearing with the Energy Regulatory Commission for the issuance of the Certificate of Public Convenience and Necessity (CPCN).
CPCN is a regulatory license in the country issued by bodies like the ERC, authorizing essential public utility services (like electricity, telecom, transport) to operate, ensuring they serve public interest and meet standards.
Tia said during the first hearing that the company was not able to present an expository presentation due to the interventions from Nordeco. Another hearing is set for Jan. 13, 2026.
“Hopefully, after that, ERC should be able to decide and then grant the CPCN so that legally we can start operating in Nordeco areas,” he said.
Tia clarified that if, for instance, ERC grants the CPCN, the company still relies on Nordeco’s cooperation.
BUSINESSMEN in Tagum City have expressed optimism over recent developments in the transition of power services.
“Stable, affordable electricity is important considering that it greatly affects our operations. Stable electricity means stable operations while affordable electricity means competitive prices in products and services,” said Engr. Sean Gellangarin, president of the Tagum City Chamber of Commerce and Industry, Inc. (TCCCII).
At the TCCCII Annual General Meeting and Election of the 2026 Board of Trustees on December 7, 2025, Davao Light’s General Manager for the Northern Franchise Area, Arnel Bersabe, presented updates on the company’s expansion efforts mandated under Republic Act 12144.
“No TRO (temporary restraining order) [has been] issued. So, in the absence of a TRO, the law is deemed valid, deemed regular. That is why we are starting with the transition,” Bersabe said.
He explained that Davao Light has already applied for a Certificate of Public Convenience and Necessity (CPCN) with the Energy Regulatory Commission, a requirement for formally expanding into Davao del Norte and Davao de Oro.Bersabe added that the company is committed to connecting the Island Garden City of Samal and Kapalong to its system within the first half of 2026.
Once the ERC issues the CPCN, Davao Light expects to quickly connect several customers in Kapalong.For Tagum City, however, the process will take longer, as a new line must be established from the National Grid Corporation of the Philippines’ (NGCP) substation in Maco, Davao de Oro to Tagum City.
Bersabe noted that the challenge lies in NGCP not allowing the connection to the Maco–Tagum City high-voltage line, the only NGCP line linking Tagum City to its substation.
“Unfortunately, wala nisugot si NGCP. The reason is 99% loaded ang line,” Bersabe said.
As a result, Davao Light is building a second line from Maco to Tagum City.Gellangarin emphasized that Tagum’s business community welcomes these developments, seeing them as positive for the economy and overall business climate in Davao del Norte.
“This transition will definitely allow Davao del Norte to tap its true potential, which has been held back by unreliable and expensive power service,” he said.
DISSATISFIED with the service of Northern Davao Electric Cooperative (Nordeco), the 20th Sangguniang Panlalawigan of Davao del Norte passed a resolution opposing the utility provider’s franchise renewal.
During its 21st regular session on Nov. 25, lawmakers passed Resolution No. 1182, expressing dissatisfaction of Nordeco’s electric distribution services due to unreliability despite expensive charges.
The resolution also requested both Houses of Congress to “seriously take into consideration these sentiments in the evaluation of application for its franchise renewal” which expires 2028.
The resolution gained a vote of 13 “Yes” while District II Board Member Orly Amit voted “No.”
Board Member Al David T. Uy, proponent of the resolution last month, said the poor service from Nordeco has long been a problem, particularly in the Island Garden City of Samal.
“I don’t have ill feelings towards them. Pero mao man gyud ang mulo sa mga taga Samal and I’m sure sa tibouk distrito uno pud pati ang Davao de Oro. Because everyday, gikan pa sauna pa nahimo kong konsehal, vice mayor, nahimo kong mayor mao gyud ang problema,” he said.
“We cannot attract investors in Samal. To be honest, mahirap talaga because of inefficiency, not reliable and very expensive,” Uy added.
District II Wendel Enad recognized that while the law is being challenged before the Supreme Court, the resolution is an expression of the sentiments of the Davao del Norte residents.
“It is a well-settled rule that a law cannot be implemented if it’s constitutionality is being challenged before the Supreme Court and the court has issued a status quo ante, temporary restraining order. In the absence of such an order, the law cannot be implemented but its implementation may be suspended if the Supreme Court finds the petition has merit. In other words, in (such) absence, the law enjoys the prèsumption of its validity until declared otherwise,” he said.
“The Resolution 1182 is just a mere expression of the sentiments of the constituents (and) as legislators we are just voicing the respective sentiments of the constituents,” he added.
In explaining is “No” vote, Amit expressed that he disagreed in the resolution considering that it promotes monopoly of public services, in this case the electric power.
“Ang Constitution sa Pilipinas nagsulti nga bawal ang monopoliya sa mga public services, sama sa kuryente. Ang paghatag og monopolyo sa usa ka kumpanya, sama sa kuryente, supak sa prinsipyo sa fair competition ug consumer protection nga gisiguro sa atong Constitution. (Art. XII, section 11),” he said in his Facebook post.
“Unsa man ang epekto sa monopoliya? Ang epekto niini wala này kapilian ang konsumante sa kuryente kay isa raman ang nag provide. Pildi ang consumer niini,” he added.
While he welcomes the entry of Davao Light as a provider for the benefit of the people, he said competition is critical so that the residents can receive an excellent service.
The 20th SP also passed a resolution urging action to ensure a smooth, orderly and uninterrupted transition of electrical services in the province.
RA 12144, which lapsed into law on April 6, officially expands Davao Light’s franchise area to include Davao del Norte and Davao de Oro.
Photo courtesy: SP Davao del Norte
