Davao Light and Power Company (Davao Light) announced on Monday that the Supreme Court (SC) has denied Northern Davao Electric Cooperative, Inc.‘s (NORDECO) motion for reconsideration and dismissed several petitions challenging the expansion of Davao Light’s franchise under Republic Act No. 12144 and the expropriation of distribution assets in its expanded service areas.
In a press statement issued on Monday, Davao Light said the Supreme Court En Banc, in its Resolution dated April 29, 2026, denied NORDECO’s motion for reconsideration filed on March 5, 2026, which questioned the implementation of Davao Light’s expanded franchise covering areas previously served by NORDECO.
The High Court also dismissed petitions filed by NORDECO concerning the expropriation of its distribution assets in the Island Garden City of Samal, Tagum City, and several municipalities in Davao del Norte.
According to Davao Light, the Supreme Court reaffirmed its earlier ruling that Congress has the authority to expand the franchise of a public utility, even in areas already covered by another utility.
The Court also reiterated that a public utility franchise is a privilege granted by the State and does not confer an exclusive right to operate in a particular area.
The resolution further stated that Congress did not violate NORDECO’s right to due process, noting that the cooperative had been given opportunities to participate during legislative deliberations on the franchise expansion.
The Court likewise ruled that the expanded franchise did not impair NORDECO’s existing contracts with its power suppliers.
The Supreme Court also affirmed that Davao Light may acquire distribution assets necessary for operating within its expanded franchise through expropriation, subject to proper court proceedings and the payment of just compensation as required by law.
In the same resolution, the Court dismissed NORDECO’s petition challenging the March 10, 2026 Order of Expropriation issued by the Regional Trial Court in Tagum City, as well as another petition questioning the orders and writ of possession issued by the Regional Trial Court in Panabo City.
Davao Light President and Chief Operating Officer Engr. Enriczar T. Tia welcomed the ruling, saying it provides greater legal clarity as the company continues to implement Republic Act No. 12144.
Tia said the Supreme Court’s resolution further clarifies the legal issues surrounding Republic Act No. 12144.
“As we move forward, our priority remains the same: to provide safe, reliable, and dependable electric service to the communities we serve. We will continue to perform our responsibilities in accordance with the law while working closely with government agencies, local government units, and other stakeholders to ensure that the transition is carried out in an orderly and responsible manner,” Tia said.
Tia added that Davao Light will continue implementing Republic Act No. 12144 by strengthening its distribution system, improving service reliability, and ensuring that customers across its expanded franchise area receive safe and dependable electric service while complying with government directives and applicable laws.
