IT APPEARS that the Northern Davao Electric Cooperative (Nordeco) and its supporters have continued to spread misinformation and disinformation following the favorable passing of the committee report on the substitution bill that seeks to expand the franchise area of the Davao Light and Power Company (Davao Light).
Claims of a P0.30/kwh increase
Nordeco and its supporters are drumming up the statement of the Energy and Regulatory Commission (ERC) during the committee hearings that there will be a P0.30/kwh increase in the franchise area of Davao Light should it take over Nordeco’s area.
However, what they leave out is that this was merely based on ERC’s simulations IF Davao Light absorbs ALL the power contracts of Nordeco.
ERC also went on the record as saying a power rate increase could be avoided because there is a provision in the proposed law that will allow Davao Light to conduct a “competitive selection process” for new power supply contracts that are cheaper than what Nordeco has. This was also reiterated by an executive of AboitizPower and by lawmakers themselves during the hearing.
ERC has also stated that the overall power rate of Davao Light could actually be lower because the private power distributor is serving more people and a larger area. Hence, the charges could be lower, resulting in cheaper power rates.
Therefore, it is not true that there will be an increase in the power rate of Davao Light if it takes over the franchise area of Nordeco.
We note that SunStar Davao, a multi-awarded newspaper in Davao City, was not able to cross-check the claims of the National Center of Concerned Electric Consumers (NCCECO) Chairman Rene Boy S. Abrea about the P0.30/kwh increase.
We call on SunStar Davao to also check the veracity of the claims of Nordeco and its supporters. A quick call to DCM, who was also physically present at the hearing, would have clarified the issue.
Peoples’ needs over personal interests
Right now, it is important for the government to focus on the needs of its people for reliable and cheap power. One way to do this is to pass into law this proposed bill that will greatly improve the quality of life in Davao del Norte and Davao de Oro.
The Supreme Court has made it clear that it is constitutional for the government to cancel Nordeco’s franchise for failing to meet the needs of the people they serve. This means the government has the power to grant a franchise to a better suited and capable power distributor.
Clearly, Nordeco now is simply grasping for straws as it loses grip on its franchise area for failing to do its job. Worse, it has resorted to spreading misinformation thinking it can fool the people to whom they had failed to provide stable, reliable, and cheap power.
At the end of the day, it is the interest of the general public that we need to champion here.
Ryan Amper
Convenor
Davao Consumer Movement
