TAGUM City’s biggest business group has joined growing calls to stop the congressional franchise renewal of the Northern Davao Electric Cooperative (Nordeco), blaming years of allegedly poor service and costly electricity that they say have stunted growth and hurt local industries.
In a statement, the Tagum City Chamber of Commerce and Industry, Inc. (TCCCII) said its members have long suffered from “skyrocketing power bills, recurring outages, and unreliable service” under Nordeco’s distribution network.
“The Tagum City Chamber of Commerce and Industry, Inc. backs the recent move of the provincial government of Davao del Norte, led by Governor Edwin Jubahib, to block the franchise renewal bid of the Northern Davao Electric Cooperative,”said TCCCII president Engr. Sean A. Gellangarin. The statement followed the September 18 resolutions of the Davao del Norte Provincial Development Council and Provincial Peace and Order Council, both opposing the renewal.
Local businesses, the Chamber stressed, have been “paying the price” of Nordeco’s inefficiency, from damaged equipment to the added burden of investing in generator sets just to keep operations running during frequent brownouts.
“The Chamber believes that there needs to be a change in the power regime in Davao del Norte. We cannot continue to operate business as is because it is simply expensive with Nordeco having the most expensive power rate in Davao Region and having to invest in modular generator sets,” the group said.
TCCCII also questioned why Nordeco is pushing for another franchise when it has failed to fix long-standing problems.
“The issues of frequent power outages, high power rates, and poor service remain unresolved to this day, yet they want to renew their franchise? The business community has been petitioning for Nordeco to change and resolve its issues, but it seems like our concerns have fallen on deaf ears,” it added.
The call comes as Nordeco faces a worsening financial and operational crisis. The Davao Consumer Movement (DCM) recently demanded transparency after the cooperative was suspended from the Wholesale Electricity Spot Market (WESM) for failing to settle nearly ₱380 million in dues, the highest arrears in the country.
The Independent Electricity Market Operator of the Philippines (IEMOP) barred Nordeco from the spot market effective September 25. As of late September, the utility still owed ₱337.6 million. Without WESM access, nearly half of its supply will be cut off, raising risks of rotational brownouts and higher electricity costs for consumers.
With mounting debts, unstable supply, and growing distrust from businesses and consumers, both groups say Nordeco must first fix its problems before it can even talk about renewing its franchise.
Nordeco has yet to issue a statement on the WESM suspension or address the mounting calls for accountability. DEF