Electric cooperatives, often linked to dominant political figures in the regions they serve, should give way to more efficient private operators with the resources to improve the service for consumers, instead of perpetually penalizing them with unreliable power.

An ongoing deadlock between the Davao Light and Power Company (DLPC) and the Northern Davao Electric Cooperative (Nordeco) over the implementation of Republic Act (RA) 12144 has led to periodic power outages in Davao del Norte and Davao de Oro as Nordeco digs in to contravene a court order.

RA 12144, which lapsed into law on 6 April last year, amended the franchise of the Aboitiz-owned DLPC to expand its service area to include Tagum City, the Island Garden City of Samal and 15 municipalities across Davao del Norte such as Maco, Mawab, Nabunturan, New Bataan and others, and Davao de Oro, areas that were previously under the exclusive franchise of Nordeco.

During the enforcement of the writ of possession in Samal last 25 February, a 30-minute island-wide outage occurred that Nordeco blamed on DLPC, even though the cooperative remained in control of the systems.

The law provides for a two-year transition during which Nordeco will continue operating the systems while DLPC will build infrastructure, obtain the necessary approvals from the Energy Regulatory Commission, and assume the assets at book value, with the proceeds used to settle the cooperative’s huge debts. It also prioritizes hiring qualified Nordeco employees and ensures an uninterrupted power supply.

The transition was far from peaceful, however. The Nordeco leadership resorted to aggressive legal and physical blockades.

While Nordeco fights an unwinnable war, the true casualties are the cooperative itself, its employees and the hundreds of thousands of consumers held hostage by the delay.

Electricity users in the Nordeco franchise area have been plagued by poor management, severe service limitations and intermittent power, damaging household appliances and resulting in heavy losses to local businesses.

Consumers are severely penalized by the stalemate. According to the latest data gathered from electric bills for January 2026 by the Davao Consumer Movement, Nordeco’s residential rate rose to P14.81–P14.90 per kilowatt-hour. In stark contrast, Davao Light’s residential rate was significantly lower at P11.72 per kWh.

Nordeco, originally founded as Davao del Norte Electric Cooperative in 1971, faced allegations of mismanagement leading to high system losses of up to 23 percent, billing errors including a notable 2024 incident of a P1 million overcharge due to a reading mistake and frequent brownouts, some lasting days, that impacted daily life and tourism in the visitor draws of Samal and Davao de Oro.

Nordeco’s resistance to the handover has triggered concerns of longer outages and unreliable supply as the dispute drags on, affecting livelihoods, schools and hospitals.

Once fully implemented, the franchise expansion is expected to bring better power quality, with DLPC committing to invest in infrastructure upgrades, new substations and digital systems.

This will address Nordeco’s longstanding problems such as frequent outages and poor service, ultimately enhancing the local quality of life and supporting economic growth.

For the sake of electricity users who have suffered for so long, it is time to end the flagrant display of defiance.

The logical recourse is to embrace the transition mechanism outlined in the law.