Members and customers of Davao del Sur Electric Cooperative (Dasureco) may enjoy some relief from the burden of rising power rates as the distributor secured a credit line from Land Bank of the Philippines for this purpose.
The grant of the credit line to Dasureco is part of Landbank’s P1.5-billion “Anti Bill Shock” lending program.
According to Landbank, this will provide financial relief to more than 230,000 households and consumers in Davao del Sur and Davao Occidental, particularly in paying their electricity bills incurred during the dry season.
The credit line enables Dasureco to augment its working fund in the summer months, when a spike in power consumption and distribution expenses normally occurs due to warmer temperature.
Also, the credit line provides Dasureco with the financial flexibility to spread out the incremental increases in their consumers’ billings by up to nine months without passing on the borrowing cost to consumers.
This arrangement helps its member-consumers mitigate the impact of high electricity rates by paying on installment or staggered basis.
“Landbank recognizes the vital role of electric cooperatives and distribution utilities in energizing the country’s economic expansion. We will further support the energy sector towards ensuring accessible and affordable energy for all, including funding projects that utilize renewable sources of energy,” Landbank president and chief executive Lynette Ortiz said in a statement.
Further, Landbank is still processing and accepting loans under the Anti Bill Shock program to help more households better manage their electricity bills, especially those who cannot afford to immediately pay their bills in full.
Eligible power distributors may loan up to 80 percent of the incremental increase on their working capital requirements during the summer months but not to exceed the repayment capacity of the distribution utilities or three times the average billings of its power suppliers.
Before the credit line was granted, Dasureco has been providing collection extensions or similar concessions to its member-consumers who are affected by disruptive events, such as earthquakes and the COVID-19 pandemic.
Dasureco has been a Landbank borrower since 2021 and maintains a good credit standing with the bank.