Nordeco faces scrutiny amidst frequent Power Outages

A Davao-based electric cooperative is facing increased scrutiny as frustrated customers call for the termination of its franchise.

To date, six local governments —Tagum City, Samal, Kapalong, New Corella, San Isidro, Talaingod— have signed resolutions calling for a new electricity provider to replace the Northern Davao Electric Cooperative Inc, (Nordeco). The company has seen a significant backlash as power issues and reports of poor customer service continue to arise.

These local governments are reportedly supported by seven large business groups in the area. Additionally, Davao del Norte Gov. Edwin Jubahib has joined the movement to oust Nordeco.

“We hope Nordeco will respect the decision of the people of Davao del Norte,” he said last month. “Our people can no longer pay P2 to P3 per kilowatt-hour while having more brownouts and bad service and having no representation in the board.”

Last month, the House of Representatives approved the second reading of a bill that would cut off Nordeco’s franchise area. If the bill is passed customers may see improvements to their electricity situation as it will be replaced by a private company.

Nordeco, however, has increased lobbying efforts to maintain its position in Davao as they have released a statement claiming that its removal would derail the Sitio Electrification Program.

Source: Inquirer