NORDECO defends service reliability amid franchise row

The reports of regulatory agencies should guide rational deliberations, not representations made by politicians who know nothing about the power industry or rural electrification.

Maria Bernadette Romero·2 February 2025, 12:20 am·1 MIN READ

NORDECO defends service reliability amid franchise row — Photograph courtesy of Meralco
Cyber threat busters Manuel V. Pangilinan-led Manila Electric Co. and the National Intelligence Coordinating Agency, the government’s primary intelligence gathering and analysis arm, have reinforced their commitment to enhance cybersecurity measures as part of efforts to unify an intelligence community to promote a stronger and safer nation. During a recent visit to the power distributor’s headquarters, Meralco and NICA pledged to work closely together for intelligence sharing, technology transfer and establishment of institutional partnerships and long-term collaborations. The joint venture are undertaken by (from left) NICA director for cyber operations Billie Boy De Leon, NICA director for cyber threat intelligence and operations office Lester Gastala, NICA deputy director general for cyber and emerging threats Francisco Ashley Acedillo, Meralco senior vice president and chief government and external affairs chief Arnel Paciano Casanova, Meralco first vice president and head of information, communication, technology and transformation Rocky Bacani and Meralco vice president and chief information and security officer Marilene Tayag.

Pass-through costs

Nordeco also corrected claims regarding its Distribution, Supply and Metering (DSM) charge, stating that it stands at P1.5372 per kWh — lower than other provider’s P2.3552 per kWh.

While its total electricity rate may appear higher, the cooperative stressed that all charges are pass-through costs, with the DSM covering labor, line maintenance and operational expenses rather than generating revenue.

Likewise, Alngog cited Nordeco’s progress, citing its “AA” rating and its contributions to the development of Davao del Norte and Davao de Oro.

“The lessons we learned from the past led us to this achievement. Our operational improvements are reflected in the progress of our service areas, as seen in the Seal of Good Local Governance (SGLG) awarded to provincial and municipal LGUs, along with other citations for excellence,” she said.

Nordeco, which serves parts of Davao de Oro and Davao del Norte, was established to provide affordable and reliable electricity to urban centers and remote communities. Its franchise area borders the Davao Oriental Electric Cooperative Inc. to the west, Agusan del Sur Electric Cooperative Inc. to the north, and the privately owned Davao Light and Power Corporation to the east.

The cooperative has energized 16 municipalities and two cities, ensuring continuous power supply to households and businesses in its coverage area.