NextGen Day

MANILA, Philippines — Senator Juan Miguel Zubiri stated that electric cooperatives (ECs) must begin to look outside the box to lower electricity rates in their franchise areas.

This comes after the Senate passed House Bill (HB) No. 10554, which expands the franchise area of the Davao Light and Power Company Inc., on its final reading late Monday (DLPC).

Not just in Davao City, Carmen, Panabo, Dujali, and Santo Tomas in Davao del Norte, but also in the current franchise territory of Northern Mindanao Electric Cooperatives (Nordeco), which includes Tagum City, Island Garden City of Samal, Asuncion, Kapalong, New Corella, San Isidro, and Talaingod.

The original territory of Nordeco, formerly the Davao del Norte Electric Cooperative, had 16 municipalities and two cities in the provinces of Compostela Valley (now Davao de Oro) and Davao del Norte.

Zubiri, who chairs the Committee on Cooperatives, said he favors the cooperative sector, particularly ECs, but that some are negligent in their responsibilities.

“Let us rally behind ECs that are making progress in lowering rates for their customers. However, for those who have remained complacent, ‘yan ang dapat tutukan din natin at sabihin sa kanila kawawa naman ‘yung mga consumers mo. Baka kaya siguro nanatiling mahihirap ‘yung mga lugar na ‘to (that were not able to lower rates, that’s what we should focus on and remind them to consider the welfare of their customers). Perhaps this is why certain places have remained impoverished) “During Monday’s hearing, he stated.

Zubiri is looking forward to meeting with members of ECs who are likely to lobby in the 19th Congress for the extension of their franchises.

“Let us help those who are deserving of our support and are working to reduce the cost of electricity. Those who have not been moving, who have been collecting their allowances and wages and have already become a burden on their communities, may be something we should either help solve or, if not, devise alternatives for “he stated

Senator Sherwin Gatchalian, who abstained, stated that even after the Task Force Duterte Northern Davao intervened in 2017 to assist Nordeco, it was still unable to fulfill the system legislation criteria and was plagued by temporary and prolonged interruptions.

These challenges, according to the Chairperson of the Committee on Energy, can be better addressed by increased capital expenditures, but Nordeco is also having trouble collecting, having only made 61% last year as its liabilities soared to PHP4.9 billion.

“I cannot vote for this bill knowing that 98,911 homes in Davao del Norte will benefit from improved services while 102,621 households in Davao de Oro will have their electricity rates rise. I am abstaining for these reasons “According to Gatchalian.

Senator Risa Hontiveros, who was re-elected, stated that her vote was not against DLPC, but for Nordeco and other ECs in similar situations.

“Nordeco will be the first to confess that the management crisis that afflicted its operations over the last decade had a significant and negative impact on its customers. However, are we subjecting Nordeco’s consumer members, as well as its employers, to further risk and uncertainty by repealing Nordeco’s franchise by implication through the expansion of another distribution utility’s franchise into Nordeco’s franchise area? “she stated

Senator Grace Poe commended her colleagues for their support of the bill, particularly Senate President Pro Tempore Ralph Recto, who was a co-author.

Recto previously stated that Nordeco’s overall performance is abysmal, citing figures from the Committee on Public Services, which is chaired by Poe. Nordeco’s systems loss is about 19 percent, compared to only 5 percent for DLPC.

“That is why there is a clamor among the business community in Davao del Norte, among representatives, among local government officials, among all the mayors and the governor, to move their franchise area from Nordeco to DLPC, not to mention that DLPC offers electricity rates that are roughly PHP3 cheaper or 25% cheaper,” Recto previously stated.

Representatives Franz Alvarez of Palawan, Pantaleon Alvarez of Davao del Norte, Jericho Nograles of the PBA party-list, and Xavier Romualdo of Camiguin drafted House Bill 10554.

On January 24, the House of Representatives passed it.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

Need to get in touch?

Feel free to Contact NextGenDay.com for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. Simple Ways To Say Thanks & Support Us:
1.) GIVE A TIP. Send a small donation thru Paypal
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---