THE Davao Consumer Movement (DCM) has urged the Northern Davao Electric Cooperative (Nordeco) to publicly explain its recent suspension from the Wholesale Electricity Spot Market (WESM) after failing to pay hundreds of millions of pesos in dues, now the highest in the country. Consumer groups warn the issue could threaten power reliability across Nordeco’s franchise areas.
The Independent Electricity Market Operator of the Philippines (IEMOP) barred Nordeco from joining the spot market effective September 25, 2025, under WESM rules. As of August 31, Nordeco’s unpaid bill had ballooned to ₱379.9 million.
By September 26, it still owed ₱337.6 million, the largest arrears of any WESM participant nationwide.
Power supply implications
Nordeco’s suspension could have serious consequences for its consumers. Data from its July 2025 Breakdown of Generation Charge shows that nearly half of its power supply came from WESM. Losing access to the spot market may severely limit its ability to meet demand.
Without WESM, the cooperative may have to depend solely on bilateral power supply agreements, which might not be enough to cover peak demand or sudden surges in consumption. This raises the risk of rotational outages, higher electricity costs, and reduced reliability — problems that directly affect households, businesses, and local economies in its franchise areas.
Transparency and accountability
What has frustrated many consumers, according to the Davao Consumer Movement (DCM), is Nordeco’s silence. Although IEMOP released the suspension notice on September 17, the cooperative has yet to issue any advisory or explanation.
“What is alarming is that Nordeco did not inform consumers that it has been suspended from participating in WESM. The notice was posted on September 17, 2025, but Nordeco did not make any posts regarding it. We demand that Nordeco clarify this matter. No clarification shows a lack of accountability, lack of transparency, and disrespect to the member-consumer owners.”
The group said that transparency is a fundamental duty of any cooperative, especially when a decision could directly impact power supply and service reliability.
Longstanding consumer discontent
The suspension adds to the string of controversies hounding Nordeco in recent years. The cooperative, which serves large parts of Tagum City, Asuncion, New Corella, Kapalong, and several Davao de Oro towns, has long faced complaints of frequent outages, delayed projects, high rates, and alleged mismanagement.
In 2024, several local governments, including the provincial government of Davao del Norte, passed resolutions seeking to revoke Nordeco’s franchise or invite other distribution utilities to serve their areas, citing chronic inefficiency and poor service delivery.
Call for action
The consumer group Nordeco’s management and board to explain the suspension, lay out a plan to pay its debts, and ensure stable supply in the months ahead. They also urged the National Electrification Administration (NEA) and the Energy Regulatory Commission (ERC) to investigate Nordeco’s finances and operations to safeguard consumer welfare.
SunStar has sought Nordeco’s official statement but has yet to receive a response. DEF