High Electricity Rates In Davao To Be Solved Soon

The long-suffering residents of the northern half of Davao del Norte, namely Tagum City and the resort island of Samal, will soon be freed from the bondage of high electricity rates courtesy of a cost-inefficient electric cooperative with a House Bill that seeks to transfer the franchise area to a local power firm.

The House Bill, calendared as HB 6740, with principal author Puwersa ng Bayaning Atleta (PBA) Partylist Rep. Margarita Ignacia Nograles is expected to gain traction with the support from Ilocos Rep Ferdinand Alexander Marcos. I Photo: Atty. Migs Nograles Facebook

That House Bill, calendared as HB 6740, with principal author Puwersa ng Bayaning Atleta (PBA) Partylist Rep. Margarita Ignacia Nograles, is expected to gain traction with the support from Ilocos Rep Ferdinand Alexander Marcos.

Moreover, the aforementioned is seen to benefit households and businesses that have been captive to the high electricity rates that Northern Davao Electric Cooperative Inc. (NORDECO) charges.

Consumers and local government officials and business establishments have been protesting the high rates that Nordeco charges, especially since the other half of Davao del Norte including Panabo City enjoy lower electricity rates from Davao Light and Power.

Nordeco charges P14 per kilowatt hour in its franchise area while Davao Light’s rate is P8.50 per kw/h, a disparity so huge that residents in the affected area have been trying to alert the government of the huge costs that they incur for their electricity rates.

Actually, the persistent joke in the area is that a resident can take just a few steps to get the benefit of the lower rates from Davao Light, a reality that has resulted in canceled tourist visits to the resort island of Samal.

Aside from the high electricity rates, households and business entities in the franchise area of Nordeco have to likewise suffer from day-long power outages and poor service, problems that have been aired over the past six months by protesters.

For Samal City Vice Mayor Lemuel Reyes, there is a need for legislative action and they are throwing their weight for HB 6740.

“This is really a big problem here in Samal, the electricity. Almost every day, we are experiencing power outages,” according to a media interview by Reyes, who has been harping on the problem. He said that since 2016, the frequent power outages have taken out the inertia from local businessmen.

Residents fear ever-higher electricity rates with the plan of Nordeco to build a 25-kilometer P1.4 billion submarine cable even as they ask government regulators why Nordeco is not sanctioned for its inability to curb the frequent power outages in their franchise area.

But with Nograles’ House bill, they are optimistic about seeing their electricity rates decline substantially, and with great services to boot plus the continuous supply of electric current with the entry of Davao Light in their franchise area.

In her explanatory note, Nograles said HB 6740 would seek to expand the franchise of Davao Light which currently services Davao City, Panabo City, and the towns of Carmen, Dujali, and Sto. Tomas in Davao del Norte.

“Over the years, Nordeco has suffered from losses and conflicting factions within the cooperative which have led to inadequate infrastructure, piling debts to service providers including power suppliers, canceled power supply contracts, excessive systems losses, and failure to energize parts of its franchise area even up to this time,” Nograles said.

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