Nordeco opposes House bill expanding Davao Light’s area

Nordeco opposes House bill expanding Davao Light’s coverage area

Nordeco opposes House bill expanding Davao Light’s coverage area

Updated on January 31, 2025 at 2:23 p.m.

MANILA, Philippines — The Northern Davao Electric Cooperative, Inc. (Nordeco) “vehemently” opposed the passage of a House bill, which seeks to expand the coverage area of Davao Light and Power Company, Inc. to include customers currently served by the power co-op.

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In a statement posted on its Facebook page, Nordeco said House Bill No. 11072, which was approved by the House of Representatives and transmitted to the Senate last December, is “unconstitutional in its entirety” and will translate to higher electricity costs.

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“Moreover, the bill in its original and its amended form is anti-people,” Nordeco Acting General Manager Elvera Alngog said. “It is thus appropriate the bill should be disapproved.”

Nordeco pointed out its distribution, supply and metering charge, or the cost of supplying electricity to consumers, is P1.5372 per kilowatt-hour, 34.7 percent lower than DLPC’s P2.3552 per kWh.

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Nordeco refuted “the inaccurate and misleading presentation” of data in a Senate hearing, saying much of what was written in the report of the sub-committee on the extension of DLPC’s franchise area led by Senator Juan Miguel Zubiri was “unfounded.”

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For instance, the co-op said the presentation of Nordeco’s data on System Average Interruption Duration Index (Saidi) and System Average Interruption Frequency Index (Saifi) was a “gross misrepresentation” of its actual performance metrics.

Saidi measures the average duration of power outages over a given period while Saifi gauges their frequency within a specific timeframe.

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According to Nordeco, the 242.33 minutes for Saidi and 4.99 for Saifi cover the period from January to July 2024 period, not July alone.

Nordeco also said Zubiri used the issue of power interruptions for comparing the power co-op and DLPC.

“The areas of Nordeco are mostly vegetated as compared to Davao Light which are highly urbanized. In case it is unknown to our good Senator, among the reasons for brownouts are electricity lines disturbed by falling objects/vegetation,” Nordeco Technical Services Department Manager Benedicto Ongking said.

“But we deliver our best in responding quickly to reports of brownouts. Even in the farthest areas such as Datu Davao in Laak, Boringot in Pantukan and Talaingod, we make it a point to respond quickly,” Ongking said.

The electric cooperative appealed for “an impartial deliberation” of the draft bill and urged lawmakers to conduct fact-checking before making statements in the Senate.

“Our Honorable Senators ought to know that they must serve with justice and uphold the truth in the discharge of their duties in order to carry out their sworn duties as public servant beholden to one but public interest,” Alngog said.

‘Apples-to-apples comparison’

However, Zubiri said that comparison of monthly electricity rates show that Nordeco customers consistently pay more than the DLPC.

“The proof of the pudding is in the eating. In considering the question of whether Davao Light and Power Company (DLPC) should be allowed to expand its franchise area, or whether the Northern Davao Electric Cooperative (Nordeco) should be allowed to retain its franchise area, we have to look at the facts,” Zubiri said in a statement.

Zubiri explains that in December 2024, Nordeco’s rate per kWh was P12.56 while DLPC’s rate was 9.21 per kWh. Meanwhile, in November of last year, Nordeco’s rate per kWh was P12.68 versus DLPC’s P9.11 per kWh.

“An apples-to-apples comparison of monthly electricity rates show that Nordeco’s clients consistently pay more than DLPC clients. I do not wish to make this a tussle between DLPC and NORDECO. I only want to make sure that the residents of the Davao Region receive the best possible power rates and services, and it is clear that DLPC is better able to step up to the task,” Zubiri explained.

Expansion

Among the provisions of HB No. 11072 include the expansion of DLPC’s coverage to include Tagum City, the Island Garden City of Samal and the towns of Asuncion, Kapalong, New Corella, San Isidro and Talaingod in Davao de Norte as well as Maco in Davao de Oro.

The draft bill inserted a new provision that calls for the transition of operations from Nordeco to DLPC.

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During the transition period, which should not be longer than two years, Nordeco is authorized to operate the existing distribution system and implement its existing power supply agreements already approved by the Energy Regulatory Commission until the takeover.

To speed up the process, concerned government agencies should prioritize all applications of DLPC in establishing and operating the distribution system within its expanded franchise area.

TAGS: Davao, Davao Light & Power Co, electricity, Northern Davao Electric Cooperative Inc. (Nordeco)

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