The Philippine Supreme Court has denied Northern Davao Electric Cooperative, Inc.'s (Nordeco) motion for reconsideration, clearing the way for Davao Light and Power Co. to expand its electricity distribution operations into parts of Davao del Norte and Davao de Oro under Republic Act No. 12144.

Davao Light is the distribution utility unit of Aboitiz Power Corp. (AboitizPower), one of the largest energy companies in the Philippines. AboitizPower is a subsidiary of the Aboitiz Group, a major Philippine conglomerate with interests in power, banking, food, and infrastructure.

In a 16-page resolution dated April 29, the Supreme Court En Banc denied Nordeco's March 5 motion, which had sought to overturn the Court's earlier ruling upholding Davao Light's franchise expansion.

The High Court also dismissed Nordeco's petitions questioning the expropriation of its assets.

"That respondent Davao Light may be allowed to expropriate Nordeco's properties does not violate the constitutional prohibition on exclusive franchises," the Supreme Court said.

"This is because Davao Light's acquisition of Nordeco's assets does not preclude new players from entering the electricity distribution market in Davao," it added.

The ruling permits Davao Light to provide electricity distribution services in several areas of Davao del Norte and Davao de Oro, including Tagum City and the Island Garden City of Samal. Both provinces are located in the Davao Region on the island of Mindanao, where power reliability has long been a concern for consumers and businesses.

Republic Act No. 12144, the law under which Davao Light's franchise expansion was authorized, was enacted to improve the reliability of electricity service in areas previously served by Nordeco, where consumers had long experienced persistent power outages and service disruptions. The law reflects a broader policy push in the Philippines to address underperformance by some electric cooperatives, which collectively serve millions of consumers across provincial areas but have faced recurring financial and operational difficulties.

Following the ruling, Davao Light said it would focus on strengthening its electricity distribution network in the expanded franchise area.

"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 Chief Operating Officer Enriczar T. Tia said in a statement on Tuesday.

Mr. Tia said the company would work closely with government agencies, local government units, and other stakeholders to ensure the transition is carried out in an orderly and responsible manner.

Davao Light is the country's third-largest privately owned electric distribution utility. The company has historically served Davao City and surrounding areas within its original franchise territory.

— Sheldeen Joy Talavera