THE Davao Consumer Movement (DCM) released a clarificatory statement on the claims of the Northern Electric Cooperative (Nordeco) that a P0.30 kilowatt per hour (kWh) increase would be implemented once the Davao Light and Power Company (Davao Light) takes over Nordeco's franchise areas.
DCM said that the projection of a power rate increase of P0.30/kWh was merely based on Energy and Regulatory Commission (ERC) simulations IF Davao Light takes all of Nordeco's power contracts.
"ERC also went on to record as saying a power rate increase could be avoided because there is a provision in the proposed law that will allow Davao Light to conduct a 'competitive selection process' for new power supply contracts that are cheaper than what Nordeco has. This was also reiterated by an executive of AboitizPower and by lawmakers themselves during the hearing," Ryan Amper, DCM convenor, said as he was present during the committee hearing on legislative franchises in Congress.
Amper also revealed that the ERC even emphasized that the overall power rate of Davao Light could actually be lower because it would be serving more people and a larger area.
"Hence, the charges could be lower, resulting in cheaper power rates," he said.
This was also reiterated by Davao Light in a statement released to the media after its Power 101 seminar held at the Apo View Hotel from Monday to Tuesday, October 14-15, 2024.
"During a House Committee hearing on Legislative Franchises last September 27, 2024, the Energy Regulatory Commission (ERC) - the Philippines' official power rate-setting authority - assessed that the service area expansion by Davao Light and Power Company does not equate to an automatic hike in consumer prices," the statement reads.
"While a decrease of up to P0.11/kWh is possible, an ERC simulation indicated that an increase of P0.30 /kWh would only happen in the current Northern Davao Electric Cooperative (Nordeco) franchise area if Davao Light absorbs all of its existing power supply contracts. New power supply contracts through a competitive selection process can make this a non-issue," the statement added.
Davao Light further said that being the third largest private utility company in the country, it has lower power rates compared to other electric cooperatives in the region, reflecting its consistent objective of seeking the lowest viable priced power contracts for its clients.
Meanwhile, Amper said the government must focus on the needs of its people for reliable and cheap power.
"One way to do this is to pass into law the proposed bill that will greatly improve the quality of life in Davao del Norte and Davao de Oro," he said.
He said the Supreme Court has already stressed the constitutionality of canceling Nordeco’s franchise for failing to meet the needs of their consumers.
It can be recalled that National Center of Concerned Electric Consumers (NCCECO) Chairman Rene Boy S. Abrea said that the electricity rate would increase by .30 centavos per kWh as calculated by the ERC, once Davao Light claims the franchise areas of Nordeco.
“But the Legislative Committee on Franchises did not pay attention to the ERC's statement because it was apparent that Nograles and her allies were maneuvering to pass the proposed bill on second reading," Abrea said.
Abrea as NCCECO chairman is even calling all Nordeco member-consumer-owners to stand and air their opposition to HB 6740 "as many rights of the MCOs in Davao del Norte and Davao de Oro will be deprived by the said bill." CEA