Supreme Court rejects Nordeco's bid to block Davao Light expansion

The Supreme Court of the Philippines dismissed Northern Davao Electric Cooperative Inc.'s (Nordeco) petition to block Aboitiz Power Corp.'s takeover of its electricity distribution areas, upholding the expansion of Davao Light and Power Co.'s franchise under Republic Act No. 12144. The high court en banc ruled that Congress's decision to expand Davao Light's franchise addressed long-standing issues of poor service quality, unreliability, and consumer dissatisfaction in Nordeco-served areas, adding that a franchise is a state-granted privilege that must serve the common good. The court also found Nordeco failed to prove due process violations, noting Congress provided multiple opportunities for the cooperative to air its side. Davao Light, the country's third-largest power distributor, will assume control of Nordeco assets in Samal Island and expand into Davao del Norte and Davao de Oro. Davao Light president Enriczar Tia stated the company will ensure an orderly transition while continuing to provide reliable electric service to communities.