A consumer group has called the attention of some concerned government agencies and the House committee on legislative franchises to look into the reported renewal of the credit line of the Northern Davao Electric Cooperative Inc. (NORDECO).
The Davao Consumer Movement (DCM) made the call as it expressed concerns that given NORDECO’s current financial state, it may pass on to its consumers payment of the loan from the Development Bank of the Philippines.
In an online post, NORDECO confirmed that it applied for an increase in the credit line with the DBP to improve its power service within its franchise area.
“This development would redound to better and quality service to our member-consumer-owners. We vow that NORDECO shall carry on in improving our services and contribute to the progress of the cities and municipalities in our franchise coverage areas,” NORDECO acting general manager Elvera Alingog said in a statement sent to reporters covering the House of Representatives.
The DCM also asked if NORDECO was given approval by the National Electrification Administration (NEA) and the Energy Regulatory Commission (ERC) to renew its credit line, considering that NORDECO does “not have the healthiest financial status in the region.”
Meanwhile, pending before the committee on legislative franchises is House Bill 6740 calling for the expansion of the franchise area of Davao Light and Power Company (DLPC) to cover eight areas in Davao del Norte and Davao de Oro to finally solve the energy woes that have disrupted the livelihood and the well-being of its residents.
Puwersa ng Bayaning Atleta (PBA) party-list Rep. Margarita Nograles has expressed confidence that expansion of DLPC’s franchise would receive the endorsement of President Marcos, even in light of a prior veto on a similar measure as this would allegedly overlap and infringe on the existing franchise of the NORDECO.
In her bill, Nograles raised the urgency to approve DLPC’s bid to cover at least eight areas in the northern Davao region as she pointed out that NORDECO has been non-compliant with the terms of their franchise as mandated by the Electric Power Industry Reform Act (EPIRA) resulting in high electricity cost and constant power interruption that is making life very difficult to many of their clients.
These eight areas include Tagum City the Island Garden City of Samal and the municipalities of Asuncion Kapalong, New Corella, San Isidro, and Talaingod in Davao del Norte and the municipality of Maco in Davao de Oro.
According to Nograles, the proposed expansion of the DLPC franchise should not be regarded as an impairment of NORDECO’s franchise which mandates the allowance of existing franchises to run their full term.
For his part, DCM convenor Ryan Amper pointed out that NORDECO’s power rates are already higher than electric franchises in the Davao Region.
Based on the latest data, NORDECO’s residential rate was at P12.94 per kilowatt hour (kwh), while Davao Light and Power Company (DLPC)’s was at P9.21/kwh only.
Davao Oriental Electric Cooperative (DORECO)’s residential rate is currently at P12/kwh, while Davao del Sur Electric Cooperative is charging customers around P8/kwh.
“While we want to see improved services, it must not be passed on to the consumers. We are already paying high rates as it is and have barely experienced any improvement in their services. What have they been doing with what we have been paying them all these years?” Amper said.
“Since they claim that the credit line will be for improving their services and distribution, could it be that they will soon increase the distribution charge in our electric bills?” They will be borrowing money in the millions and hundreds of thousands. Is ERC or NEA aware of this? Their debt may have been ballooning as we speak,” Amper added.
Amper called on NORDECO to publicly lay down its plans on how it will use the credit line.
“At the end of the day, we are the consumers of NORDECO. We are the ones paying NORDECO executives their salary. Hence, it is our right to know what they will use the money for,” he said.
The NORDECO has been urged to present its plans to the public as a sign of transparency and also as an assurance that it is doing its best to address the power crisis in Davao del Norte.