The Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA) strongly opposes the push by lawmakers for Senate Bill No. 2888, which could authorize Davao Light and Power Company, Inc. (DLPC) to take over the franchise area of the Northern Davao Electric Cooperative, Inc. (NORDECO).
“This blatant disregard for the contributions and sacrifices of electric cooperatives over the decades is not only unjust but is also posing a serious threat to the long-term welfare of our member-consumer-owners and the integrity of rural electrification in the Philippines,” said PHILRECA in a statement.
The association pointed out that an analysis of the Distribution Supply Metering (DSM) shows that NORDECO’s rate of Php 1.5372 per kilowatt-hour (kWh) is lower than DLPC’s rate of Php 2.3552 per kWh, with DSM covering the operational expenses of distribution utilities.
PHILRECA emphasized that inaccurate information has been spread to support the justification for the franchise expansion and the takeover of the electric cooperative.
“The comparison of System Average Interruption Frequency Index (SAIFI) and System Average Interruption Duration Index (SAIDI) between DLPC and NORDECO is grossly inaccurate and deliberately skewed,” said the association.
PHILRECA also disproved that NORDECO is only enhancing its services because of its upcoming franchise renewal. The association called this claim a complete falsehood, emphasizing that NORDECO has been consistently upgrading its services for years, long before any discussions around franchise renewal began.
These improvements reflect careful planning, sound financial stewardship, and a commitment to the community, not profit. As a result of these efforts, NORDECO has earned an AA rating from the National Electrification Administration (NEA), a significant improvement from its previous C rating.
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