Reliable electricity as a matter of public interest

The Supreme Court has finally put an end to the legal uncertainty surrounding Republic Act No. 12144, declaring it constitutional and clearing the way for Davao Light and Power Company (Davao Light) to take over areas previously served by Northern Davao Electric Cooperative (NORDECO).

The law affirms Davao Light’s expanded franchise, ensuring that residents in the newly covered areas—including Tagum City, the Island Garden City of Samal and several municipalities in Davao del Norte and Davao de Oro—can expect uninterrupted and improved electricity services.

With the High Court’s decision, there is now no legal obstacle preventing the full implementation of RA 12144. While NORDECO has expressed concerns about how the transition should be implemented, particularly with respect to asset transfer and cooperative governance, the constitutionality of the law itself has already been settled.

Now that the Supreme Court has spoken, it is high time for NORDECO to listen to public clamor, stop resisting and prioritize the welfare of its customers.

It must allow Davao Light to fulfill its legal mandate, providing reliable, uninterrupted power and long-overdue relief to the communities that have suffered for far too long. NORDECO maintains that due process must be observed. But due process cannot become a pretext for prolonging uncertainty.

Despite the clarity of the ruling, NORDECO has continued to resist the transition, delaying the long-awaited transfer of operations to Davao Light. The cooperative insists it is not defying the Court, but merely seeking clarity on implementation. However, the broader public interest demands that the transition proceed without further delay.

NORDECO is holding on to its claim that RA 12144 undermines its franchise rights – a notion the Supreme Court has already clarified as “not absolute.”

It even described Davao Light’s takeover of NORDECO’s distribution assets in the Island Garden City of Samal as “totally illegal,” despite the takeover being ordered by Regional Trial Court Branch 4 in Panabo City. NORDECO argues that such actions must strictly comply with cooperative laws and compensation mechanisms, but court directives must ultimately prevail.

This continued resistance risks undermining the rule of law and jeopardizing the delivery of reliable power to communities that have long suffered from unreliable service and frequent outages, which have caused missed economic opportunities and disrupted daily life.

Previous studies estimate economic losses due to NORDECO’s inefficiencies at hundreds of millions of pesos: the tourism industry lost P50 million, businesses P30 million, agriculture and fisheries P20 million and public services and infrastructure P10 million. While NORDECO has pointed to financial and infrastructure constraints faced by many electric cooperatives nationwide, the burden of those limitations has been borne by consumers.

On Samal Island alone, businesses reportedly lost between P10,000 and P100,000 in daily revenue due to power outages, with some forced to close as tourists opted to move to other areas.

Once and for all, it is time for NORDECO to respect the rule of law and allow the people of Tagum, Island Garden City of Samal and the affected areas of Davao del Norte and Davao de Oro to finally receive the reliable and efficient service they deserve from Davao Light and Power Company.

----
Follow my social media accounts JingCastaneda:  Instagram, Facebook, YouTube, Tiktok and Twitter.  Send your questions, suggestions and reactions to [email protected].