Mindanao power coop faces disconnection

MANILA, Philippines -Another electric cooperative faces the prospects of disconnection as it has not been able to settle its electric bills, according to the National Electrification Administration (NEA).

The Department of Energy (DOE) and NEA  are urging customers of Davao del Norte Electric Cooperative Inc. (DANECO) to pay their power bills to the coop’s legitimate management in order to avert a possible disconnection. 

DANECO covers the provinces of Davao del Norte and Compostela Valley serving 160,601 member-consumers.

A former top performing electric cooperative, it is currently beset with governance issues since there are two groups operating in Davao del Norte and Compostela-DANECO-Cooperative Development Authority (CDA) and DANECO-NEA. Both groups are collecting bills payment from consumers but DANECO-CDA does not remit its collections to DANECO’s coffers.

Since DANECO-CDA has not remitted its obligations for consolidation of payments. It is DANECO-NEA pays its obligations management but is unable to pay the full amount due to the situation. 

To date, DANECO has an outstanding power accounts obligations to the Power Sectors Assets and Liabilities Management Corp. (PSALM) amounting to P275.24 million.

Energy Secretary and NEA board chairman Carlos Jericho Petilla, during his discussion with electric cooperatives on policy directions in the recently concluded NEA-ECs Consultative Conference, said “the thrust right now is for the ECs to pay their power bills on time.”