PHILRECA concerned over Davao franchise change 

The Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA) has expressed concern over a Senate bill, that seeks to expand the franchise area of the Davao Light and Power Company, Inc. (DLPC) by taking over areas currently served by the Northern Davao Electric Cooperative, Inc. (NORDECO).  

In a statement over the weekend, PHILRECA warned that allowing private companies to take over electric cooperative service areas could have long-term effects on consumers and rural electrification. 

“If private companies are granted franchises at the expense of electric cooperatives, this could shift the focus of power distribution from service to profitability, potentially affecting consumers in the long run,” it said.  

The group also questioned claims that DLPC offers lower electricity rates, pointing out that NORDECO’s Distribution Supply Metering (DSM) rate of P1.5372 per kilowatt-hour (kWh) is lower than DLPC’s P2.3552 per kWh. 

It also raised concerns about how service reliability data was presented, saying some figures may have been misrepresented. 

Thus, PHILRECA urged lawmakers to carefully evaluate the bill’s potential impact on consumers, questioning why it does not include provisions for electrifying unserved areas, lowering system losses, or ensuring long-term affordability. 

“If the goal is truly to enhance service for consumers, then it is important to ensure that any policy changes include measures that directly benefit them,” it said.  

“We hope that any decision made will prioritize sustainable and inclusive electrification efforts that serve the best interests of all consumers,” it added.