Legislation

DCM Addresses False Information Circulated by Nordeco

Nordeco and its supporters are persistently disseminating false information and disinformation following the positive development of the committee report on the substitution bill aimed at expanding the franchise area of the Davao Light and Power Company (Davao Light).

ERC’s Statement and Conditions for Potential Increase

During the committee hearings, Nordeco and its supporters highlighted the Energy and Regulatory Commission’s (ERC) statement about a potential P0.30/kWh increase in Davao Light’s franchise area if it were to take over Nordeco’s area. However, it’s important to note that this projection was merely based on ERC’s simulations, IF Davao Light would absorb ALL of Nordeco’s power contracts. This is not a definite increase, but a hypothetical scenario.

Additionally, ERC has emphasized that implementing a “competitive selection process” for new power supply contracts could avoid a power rate increase and be more cost-effective. This process ensures fairness and transparency, providing reassurance to all stakeholders. Furthermore, ERC has pointed out that Davao Light’s overall power rate could be lower due to serving a larger area and more people, resulting in cheaper power rates.This is further supported by House Bill 6740 as declared by ERC. 

It’s important to note that SunStar Davao did not cross-check NCCECO (National Center of Concerned Electric Consumers) Chairman Rene Boy S. Abrea’s claims about the P0.30/kWh increase.

Government’s Role and Prioritizing People’s Needs

The government must prioritize people’s needs over personal interests by providing reliable and affordable power to its citizens. The government’s role in this matter is crucial, and one way to ensure this is bypassing the proposed bill, which aims to enhance the quality of life in Davao del Norte and Davao de Oro.

The Supreme Court has affirmed the government’s constitutional authority to revoke Nordeco’s franchise for failing to meet the needs of the people they serve. This ruling provides reassurance that the government has the power to grant a franchise to a more suitable and capable power distributor, ensuring the best service for the public.

It is evident that Nordeco is resorting to spreading misinformation as it loses its grip on its franchise area due to its failure to fulfill its responsibilities. In this matter, it is essential to prioritize the interests of the general public, ensuring they feel valued and considered in the decision-making process. Your role in this process is crucial, and your voice matters.

Source: wegotmail: DCM statement on the disinformation being spread by Nordeco