The Energy Regulatory Commission (ERC) has ordered the Northern Davao Electric Cooperative, Inc. (NORDECO) to immediately stop billing and collecting electricity payments from consumers in the Island Garden City of Samal (IGaCoS) and mainland Davao del Norte, recognizing Davao Light and Power Company, Inc. (Davao Light) as the sole authorized distribution utility in the areas covered by its expanded franchise.
In a 17-page order promulgated on July 3, 2026, and shared with the media, the ERC resolved the dispute over operational responsibility, billing, and payment collection between the two utilities after months of confusion that led to cases of double billing and uncertainty among consumers.
The order stemmed from a request by the Provincial Government of Davao del Norte for the ERC to mediate between Davao Light and NORDECO and clarify which utility has the legal authority to operate in the province following the expansion of Davao Light’s franchise under Republic Act (RA) No. 12144.
“The continued collection of payments by NORDECO from consumers and its insistence on being the rightful distribution utility in areas where Davao Light holds a valid Provisional CPCN and has taken possession of distribution assets creates an unlawful and prejudicial situation for consumers,” the ERC said.
“It exposes them to the risk of paying twice for a single service, creates confusion about their legal obligations, and undermines confidence in the regulatory framework,” it added.
The commission ruled that Davao Light is the only utility legally authorized to operate the electric distribution system in IGaCoS and the expanded franchise areas in Davao del Norte, citing its valid Provisional Certificate of Public Convenience and Necessity (CPCN) and its possession of NORDECO’s distribution assets through court-issued writs of possession.
Under the order, Davao Light is recognized as the sole distribution utility authorized to operate, bill, and collect payments from consumers in IGaCoS and the Province of Davao del Norte, excluding Davao City, Panabo City, Carmen, Dujali, and Santo Tomas, which are already covered by its original franchise.
The ERC directed Davao Light to ensure the continuous and uninterrupted delivery of electricity services in the affected areas.
Meanwhile, NORDECO was ordered to cooperate fully in the transition by turning over all consumer records, billing data, metering information, and other service records to Davao Light within 15 days from receipt of the order.
According to the ERC, failure to comply will constitute a separate regulatory violation and may result in the issuance of a show cause order.
The commission likewise ordered NORDECO to immediately cease and desist from billing consumers or collecting electricity payments in IGaCoS and the areas of Tagum City, Asuncion, Kapalong, New Corella, San Isidro, and Talaingod.
It further directed that any collections made by NORDECO in these areas after receipt of the order shall be deemed unauthorized and must be remitted to Davao Light within 15 days.
The ERC emphasized that RA 12144, which expanded Davao Light’s franchise, remains in full force after the Supreme Court dismissed petitions challenging its constitutionality on January 14, 2026. While NORDECO has filed a motion for reconsideration, the commission noted that the High Court has not issued a temporary restraining order or writ of preliminary injunction that would suspend the implementation of the law.
The commission also underscored that although RA 12144 allows NORDECO to continue operating during the transition period, such authority is conditional upon securing a provisional CPCN from the ERC.
“However, as of this date, NORDECO has neither filed an application for such a provisional CPCN nor has the Commission issued one in favor of NORDECO for any portion of the expanded area,” the order stated.
The ERC also noted that Davao Light has already obtained possession of NORDECO’s distribution assets in Davao del Norte and IGaCoS through writs of possession issued by the Regional Trial Courts in Tagum City and Panabo City, with sheriffs’ returns confirming the turnover of the facilities.
The commission noted that no court has stayed or nullified the writs of possession, and no temporary restraining order has been issued in the Supreme Court cases questioning the expropriation proceedings.
However, the ERC maintained the status quo in Davao de Oro, where Davao Light has yet to initiate expropriation proceedings over NORDECO’s distribution assets.
ERC added that NORDECO may continue operating until Davao Light acquires or establishes its distribution system in the province.
The commission also directed NORDECO to file, within 60 days, an application for a provisional CPCN covering the affected municipalities.
