Supreme Court dismisses Nordeco’s plea, affirms Davao Light’s expansion

MANILA, Philippines — The Supreme Court has dismissed the petition of Northern Davao Electric Cooperative Inc. (Nordeco) seeking to bar Aboitiz Power Corp. to take over the distribution of electricity in areas served by the former. In a recent decision, the high court en banc echoed its earlier ruling in favor of Congress expanding Davao Light and Power Co.’s franchise under Republic Act No. 12144. READ: Nordeco vows sustained electrification drive amid dispute with DLPC Davao Light is the country’s third-largest power distribution firm, delivering power to Davao City, Panabo City and the towns of Carmen, Dujali and Sto. Tomas in Davao del Norte. The Aboitiz firm got the green light to assume control of Nordeco assets in Samal Island. The group also secured government approval to expand in Davao del Norte and Davao de Oro. Nordeco then sought the high court’s intervention amid the coexistence of two electricity providers. But the high court said Congress’ decision on Davao Light’s expansion was meant to address the “long-standing issues of poor service quality, unreliability and consumer dissatisfaction in areas served by Nordeco …”. “Ultimately, a franchise is a privilege granted by the state. It is not an exclusive private property of the franchisee and must yield to serve the common goods, as may be determined by Congress as the people’s elected representatives,” it added. READ: Nordeco stays operational amid Davao Light’s takeover claims The court also said that Nordeco had failed to prove that its right to due process was violated, adding that Congress gave “multiple opportunities” for Nordeco to air its side. Nordeco, according to its website, provides power to 16 towns and two cities in Davao de Oro and Davao del Norte. “The Supreme Court’s Resolution provides further clarity on the legal challenges to 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,” Davao Light president and COO Enriczar Tia said in a statement. “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 added. INQ