Davao Light granted provisional authority for expansion

Davao Light and Power Co. has been authorized by the Energy Regulatory Commission to begin operations in its expanded franchise areas after ERC granted the utility provisional authority, countering claims by the Northern Davao Electric Cooperative (Nordeco) that Davao Light’s mandate remains uncertain.

At the center of the dispute is Davao Light’s application for a Certificate of Public Convenience and Necessity (CPCN), the permit required for electric utilities to operate in a service area.

The ERC regulates power rates and utility expansion to ensure reliable service and protect consumers.

Nordeco has argued that Davao Light’s application remains under review and has yet to receive final approval.

This is in reference to an en banc meeting on 12 December 2025 when ERC granted Davao Light provisional authority, allowing it to begin limited operations while its CPCN application was being evaluated.

“ERC granted provisional CPCN to Davao Light so it can already start operating in the area (where) they have already constructed the distribution system,” ERC legal services director III lawyer Ma. Corazon C. Fines said during the meeting.

Provisional authority

Under the provisional authority and in line with Republic Act 12144, Davao Light may install power lines, accept consumers, and process new connection applications in parts of Davao del Norte and Davao de Oro.

In an advisory issued 20 January, Nordeco said it remains the legitimate distribution utility in the two provinces, citing the pending review of Republic Act 12144 before the Supreme Court.

“The law expanding Davao Light’s operations into Nordeco’s franchise area is not yet final because its validity has been questioned before the Supreme Court,” Nordeco said.

Republic Act 12144, which lapsed into law on 6 April 2025, expanded Davao Light’s franchise to areas traditionally served by Nordeco.

In June 2025, Nordeco filed a petition before the Supreme Court seeking to declare the law unconstitutional and to stop its implementation through a temporary restraining order.

Separate franchise

Separately, lawmakers filed House Bill No. 7006 on 22 December 2025, proposing a separate franchise for Nordeco to operate electric distribution systems in Davao del Norte and Davao de Oro.

As the franchise dispute continues, electricity rates in the region have also drawn public attention.

Davao Light’s residential rate rose to P11.72 per kilowatt-hour for the 11 January to 10 February 2026 billing period, up about P2.01 per kWh from December 2025. The increase was attributed to higher generation costs from the Wholesale Electricity Spot Market and implementation of the Green Energy Auction Allowance, partly offset by lower feed-in tariff charges.

Meanwhile, Nordeco posted the highest residential power rate in the Davao Region in January 2026.

Movement said Nordeco’s residential rate climbed to P14.81 per kWh from P12.70 per kWh in December, based on collected electric bills.

Nordeco has yet to release its official January rate.