AboitizPower readies NORDECO takeover
Asset purchase alone was somewhere between P700 million to a billion to purchase the assets and then we would still need to do a technical due diligence to see what it could take to raise the standards to our level.
Anton Perdices, chief operating officer of AboitizPower Distribution Utilities.
Photograph by Maria Romero for the Daily Tribune
The consumer-initiated Davao Light and Power Company takeover of the Northern Davao Electric Cooperative (NORDECO) would require the Aboitiz Power Corp. unit to overcome not just financial and regulatory challenges but political hurdles, too.
However, Anton Perdices, Chief Operating Officer of AboitizPower Distribution Utilities, affirmed that the company is ready and willing to tackle the challenges ahead.
In an interview at the sidelines of Enlit Asia 2024, Percides informed reporters that initial investments to purchase NORDECO’s assets alone could cost the company about a billion.
“Asset purchase alone was somewhere between P700 million to a billion to purchase the assets and then we would still need to do a technical due diligence to see what it could take to raise the standards to our level,” Percides said.
Davao clamor revealed
“It’s no secret that we’ve been approached by a cooperative in Davao, NORDECO. We are willing to offer the right (amount) because as a consumer it’s hard to swallow that you are here under NORDECO and across the street is Davao Light. These guys are getting power 24 hours a day at a cheaper price and why can’t we?”
Likewise, Perdices recognized that acquiring NORDECO would not be straightforward.
He said it would require going through various political channels, including Congress before the President gives it the final approval.
“It’s not as easy as switching it off one day to the next,” he added.
To recall, there had been a clamor for Davao Light to expand its services in the Davao region after some local government units reportedly planned to leave their current power distributor NORDECO due to alleged corruption and inefficient services.
However, in 2022, President Ferdinand Marcos Jr. vetoed House Bill 10554 providing for the inclusion of Tagum City, Island Garden City of Samal, and the municipalities of Asuncion, Kapalong, New Corella, San Isidro and Talaingod, Davao del Norte within the franchise of Davao Light. NORDECO is servicing these areas. It has an existing franchise for the mainland until 2028 and Samal until 2033.
Meanwhile, Davao Light is the third largest privately-owned electric distribution utility in the country in terms of customer size and annual kilowatt-hour sales.
It holds a franchise for supplying power to Davao City in Davao del Sur, Panabo City, and the municipalities of Carmen, Dujali and Sto. Tomas in Davao del Norte.