Factions in Davao Norte power cooperative move to avoid cutoff

DAVAO CITY, Philippines – The two conflicting factions within the Davao del Norte Electric Cooperative (Daneco) have been forced to set aside their conflict and work on improving collection of electric bills for them to be able to pay P350 million in arrears and avoid an impending power disconnection.

Energy Secretary Carlos Jericho Petilla himself recently met with the stakeholders as well as officers of the feuding Daneco factions – the Daneco-Cooperative Development Authority (Daneco-CDA) and the Daneco-National Electrification Administration (Daneco-NEA) – in an effort to resolve the conflict which actually caused the cooperative’s power bills to balloon to P350 million.

Daneco covers the provinces of Davao del Norte and Compostela Valley with a consumer base of 160,601 households as well as commercial and industrial users.

During the meeting with Petilla, it was decided that Daneco-NEA would spearhead the collection of payments for the cooperative to be able to meet its obligations with the power provider, the Power Sector Assets and Liabilities Management (PSALM).

Those present in the meeting with Petilla also agreed that a referendum among Daneco members shall be held on the second month of January 2014 to determine who shall really manage the electric cooperative.

Should PSALM push through with cutting off power to Daneco, among the most affected would be the more than 100 beach resorts along the coastal areas of the Island Garden City of Samal, including the world-famous Pearl Farm Beach Resort.