Power disconnection to Compostela, Davao Norte looms

DAVAO CITY, Philippines – Power may soon be disconnected to the provinces of Compostela Valley and Davao del Norte due to the failure of the Davao del Norte Electric Cooperative (Daneco) to pay its financial obligations amounting to over P576.45 million.

To be affected by the looming power cutoff are not only households but also industrial, commercial and tourism establishments in the two provinces, including the hundreds of beach resorts in the Island Garden City of Samal. 

The Power Sector Assets and Liabilities Management Corp. (PSALM) warned of the power disconnection after Daneco failed to settle its financial obligations until the final demand lapsed last March 21.

PSALM has asked the Department of Energy (DOE) for clearance for the issuance of a disconnection notice to Daneco.

The financial woes of Daneco also stemmed from the rivalry between factions in the utility firm – the Daneco-Cooperative Development Authority (CDA) and the Daneco-National Electrification Administration. 

Compostela Valley Gov. Arthur Uy said the issue on who should run Daneco was supposed to be subject to a referendum. 

However, the referendum did not push through even if the DOE mediated between the two factions.

“There were three options then, it was either outright power cutoff, a referendum or for the DOE to issue a cease-and-desist order for Daneco-CDA not to collect anymore and let the police arrest them if they do not follow. But what we have now is the status quo,” Uy said.

“It is just that my powers are too limited, that is why I am frustrated with how things turned out,” he said.

Uy said the dispute between the two factions must be resolved soon or else the province and Davao del Norte face a power cutoff.