THE Northern Davao Electric Cooperative (Nordeco) Inc., formerly Davao del Norte Electric Cooperative (Daneco) Inc., denied the claims of Island Garden City of Samal (Igacos) Mayor Al David Uy that the loan for the construction of the proposed submarine cable and substation projects was passed on to the consumers.
Over the weekend, Uy posted on his social media accounts about his frustrations with regards to the delayed construction of the submarine cable and substation projects. These projects are seen to improve the power situation on the island.
"I am asking now the former officials of Daneco and NEA [National Electrification Administration] from 2013-2018. Asa naman ang 200 million Capex [capital expenditure] ninyo for Samal Island? (Where is the P200 million CapEx for Samal Island)," Uy said in his post on June 26.
In a separate post on the same day, Uy said the P200 million loan of Nordeco will be passed on to the consumers of the areas it serves -- Davao de Oro and portions of Davao del Norte.
“Estimate nato tanan konsumante sa Daneco apil Davao de Oro 200,000 households times average Capex singil nila is 40php =8M kada bulan diay dili tuig (pastilan) to pay their 200M Capex [sic] (Let’s estimate 200,000 households are being served by Nordeco in Davao del Norte and Davao de Oro, they could charge each household around P40 each. They would be collecting around P8 million per month to cover the P200 million Capex),” Uy said.
He added if the loan was made in 2016 and has been passed on to the consumers since then, Nordeco would have already collected P480 million, which is more than what was loaned by the electric cooperative.
In a separate post, the Igacos mayor said he cannot see the point of Nordeco passing on the expenses in the purchasing of line posts, transformers, and other equipment.
"Ang Capex na gina-singil ninyo mao man daiy ang inyo kuno ginagamit pang-palit [og] mga gamit pang kuryente. Asa man ang hustisya sa mga konsumante na sa dugay na panahon inyo ginapa-palit [og] mga electric posts, transformers, metro ug mga lain pa na mga gamit para lang makasuga (The Capex that you are passing on to your consumers is your source to purchase equipment for electrification. Where is justice for the consumers that for the longest time, you have been charging them for the purchasing of electric posts, transformers, electric meter, and other equipment just for them to have electricity)?" Uy said.
The mayor also asked Congress to investigate the current power situation in Igacos.
In a statement, Nordeco General Manager Mario Angelo Sotto denied the mayor's claim that the loan was passed on to the consumers after the latter urged Samaleños to check on their electric bills if payment for Capex is included.
He also clarified that only P80 million was released by the bank for the Energy Regulatory Commission (ERC)-approved Capex for year 2010-2012.
Sotto clarified the budget that has been approved for the uprating of the Submarine Cable connected from Sasa, Davao City to Igacos under Capex 2010-2012 is P101,750,715.
Until today, he said the project is unimplemented. Therefore, he said it cannot pass on to the Member-Consumer-Owners (MCOs).
Sotto said Daneco applied for a loan for the project implementation, but the bank only approved P325 million.
Of this amount, only P80 million was released for the entire franchise area project, he said.
“Ang kamatuoran maski ang private DUs (distribution utilities) kung naa gani sila gastuhon kay mo file jud na ug pass-on charges sa ERC (The truth is even the private DUs if there are capital expenditures, they will file for pass on charges to the ERC),” Sotto said.
Sotto also clarified that Nordeco did not impose a power rate increase from the current Reinvestment Fund for Sustainable Capex (RFSC) rate of 0.2178 per kilowatt hour based on the approved Rules for Setting Electric Cooperatives’ Wheeling Rates (RSEC-WR).
“That is the rate that we could see in our power bill approved by ERC since 2010,” he said.
“Initially, na report na sad ni atong miaging (general) assembly Mayor last October 12, 2019. Tanan nga i-implement sa Nordeco, naa dyud kini approved nga Board Resolution labi na dyud ang dagko nga project ug usab miagi kini sa assembliya (This was initially reported to during the previous general assembly last October 12, 2019. All that were implemented by Nordeco are based on approved Board Resolutions especially, it is big project),” he added.
Sotto, meanwhile, said it is impractical to pursue the supposed submarine cable project.
Among the reasons he cited is that Davao Light and Power Company (DLPC) cannot guarantee to supply the whole power requirement of the island and the forecast power load of Igacos is not included in the preparation of the Distribution Development Plan (DDP) of DLPC for it is not covered with the DU’s franchise.
He also said the 13.2-kilovolt submarine cable is still fit for the current three-megawatt average power supply the DLPC is providing.
Sotto said DLPC, which is based in Davao City, is not within the franchise of Nordeco, which means it is not practical to implement a project outside Nordeco’s franchise.
Nordeco is an electric cooperative distributing power in most parts of Davao del Norte, including Igacos and Tagum City. (With reports from Jeepy P. Compio)