Nordeco's Franchise Renewal: Statement from the Davao Consumers Movement
Nordeco Renews Franchise Amidst Consumer Protests
Northern Davao Electric Cooperative (Nordeco) has announced its intention to renew its franchise, a move that has sparked controversy among consumers and consumer groups in Davao del Norte, Davao de Oro, and the Island Garden City of Samal.
The renewal comes despite the passage of Republic Act 12144, which expanded Davao Light's franchise area to include regions currently served by Nordeco. Critics, such as the Davao Consumers Movement, argue that this renewal is a disregard for consumer voices and the law.
Nordeco, however, asserts that its renewal is a legal right under existing laws (RA 6038 and PD 269) and maintains that RA 12144 does not automatically transfer its service areas. The cooperative also points out that the expansion law is currently under review by the Supreme Court for constitutional issues, so until a ruling is made, it retains full authority to operate in its franchise areas, which expire in 2028 and 2033.
The Davao Consumers Movement has accused Nordeco of not being true to its motto of "Serbisyong Kinasingkasing," or "superior service," and has called for Nordeco to step down and allow a more competitive power distributor to operate. They argue that Nordeco has been accused of poor services and high power rates for years, with improvements only being seen recently during the renewal of its franchise.
The movement also questions the sincerity of these improvements, given their timing around the franchise renewal efforts. They represent residents who favor a more competitive power distribution environment and believe that transitioning some areas to Davao Light, as per the new legislation, would be beneficial.
Nordeco's decision to renew its franchise is also perceived as a disregard for the heed of the people, according to the Davao Consumers Movement. The movement has raised concerns that Nordeco's actions show a refusal and stubbornness in the face of consumer demands and the law.
Despite these criticisms, Nordeco maintains that early renewal filing is consistent with power industry rules to ensure uninterrupted service to its members. The cooperative continues to disregard consumer needs and demands, despite the presence of Republic Act 12144.
As the situation unfolds, it remains to be seen whether Nordeco will continue to operate in its current service areas or if it will make way for a more competitive power distributor. The decision will have significant implications for consumers in the region, who are hoping for improved services and lower power rates.
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The renewal of Nordeco's franchise, amidst consumer protests, sparks a debate in Davao's policy-and-legislation stage, as local groups disagree on the cooperative's disregard for consumer voices and the law. The Davao Consumers Movement emphasizes the importance of politics, as they argue for a more competitive power distributor to address long-standing concerns about Nordeco's services and power rates.
Nordeco's continued operations face a contested future, given the questions raised about its dismissal of consumer demands and the ongoing review of RA 12144 by the Supreme Court, which has implications for general-news headlines in Davao.
