Daneco-NEA to manage electric coop-A A +A
Friday, August 23, 2013
THE Davao del Norte Electric Cooperative-National Electric Administration (Daneco-NEA) will be the recognized management of Daneco starting August 31 until the referendum set on the second Saturday of January 2014, an electric official said Friday.
Department of Energy (DOE) Secretary Carlos Jericho L. Petilla said this during the Daneco-DOE dialogue held at Waterfront Insular Hotel. They discussed who will manage Daneco, Daneco-NEA or Daneco-Cooperative Development Authority (Daneco-CDA), and when they will assume management.
Petilla presented the debt incurred by the electric cooperative. He said they arrived at the decision in order for Daneco to slow down the growth of its debt.
In the presentation, Petilla showed to Davao del Norte public officials and members of Daneco that the electric cooperative will have roughly around P600 million of payables by the end of August.
"Hopefully, wala'y maputlan kay isa nalang ang mudagan. Ang problema man gud if duha mudagan P100 million ang uncollectible na amount (With only one group managing Daneco, there is a possibility that not one will be without power. If there are two managers, uncollectible amount would reach P100 million)," he said.
Without the dialogue, Petilla said Daneco could incur a monthly payable of P100 million.
The danger to this is that Daneco will be disconnected once their debts will reach a total of P800 million.
Consumers will be confused if two groups will collect and often resulted in double payments.
In line with this, Petilla ordered an immediate accounting and auditing for both parties to know who to account for the payables and to prepare for the referendum in January 2014.
The referendum will then decide who will manage Daneco. This will be decided by the consumers.
"Between Daneco-CDA and Daneco-NEA, there can only be one. There will be an election whether they like it or not. However, until then it will be NEA who will collect," said Petilla.
He expressed mixed feelings with the outcome of the dialogue.
"I am always unhappy with any result of any dialogue because it always ends in pain. But I am also happy because in any dialogue there is always a solution," he said.
Davao del Norte Governor Rudolfo del Rosario and Compostela Valley Governor Arturo Uy expressed their support.
"There should only be one faction for Daneco. It will be detrimental if there are two. However, there should be a comprehensive audit before the referandum," said Del Rosario.
Uy, meanwhile, said: "For us not to suffer from a disconnection of energy supply, we have to make some sacrifices. This is also the immediate solution for us to prevent thr increase of debts."
Published in the Sun.Star Davao newspaper on August 24, 2013.