The National Electrification Administration (NEA) has again advised customers of the Davao del Norte Electric Cooperative (Daneco) to settle their electricity bills with the legitimate court-recognized and NEA-backed management.
NEA also ordered the Daneco group associated with the Cooperative Development Authority (CDA) to stop its illegal operations through the execution of a cease and desist order (CDO).
The CDO against the group was implemented by NEA on November 9, pursuant to pertinent provisions of Republic Act No. 10531 otherwise known as the “National Electrification Administration Reform Act of 2013.″
Accompanied by the members of the Philippine National Police (PNP), NEA legal officers and officials of Daneco-NEA closed down the main office and six collection centers of the breakaway group in Davao del Norte.
In issuing the order, NEA Administrator Edgardo Masongsong directed the Daneco-CDA to refrain from “further performing any and all acts of management and/or control of the electric cooperative or any portion of its franchise area.”
“The two groups operating in Compostela Valley and Davao del Norte have been causing confusion among the member-consumer-owners.”
Masongsong said the two groups operating in Compostela Valley and Davao del Norte have been causing confusion among the member-consumer-owners (MCOs) because both Daneco-NEA and Daneco-CDA are collecting bill payments.
Only Daneco-NEA, however, settles its obligations with power suppliers and other government agencies. As a result, Daneco’s accounts receivables ballooned to P2.5 billion. Its collection efficiency also dropped to 60 percent and its system loss rose to 19.53 percent.
“This situation had adversely affected the financial viability of Daneco, Inc. as evidenced by the July 2018 Monthly Statistical Financial Report, which showed an aggregate amount of P2.283 billion as indebtedness to the power suppliers,” the order read.
“Only Daneco-NEA, however, settles its obligations with power suppliers and other government agencies.”
“The empirical data indubitably show that the unhampered tortuous operation of Daneco-CDA brought about the financial woes of Daneco, Inc. to the extent of the looming power disconnection by the power suppliers,” it added.
The Supreme Court had earlier ruled and affirmed with finality the Court of Appeals’ decision declaring that the actions of Daneco-CDA, including the conduct of elections and referendum, were illegal.
To recall, the NEA issued a CDO against Daneco-CDA in December 2013, directing the latter to stop its unlawful operations and collections of payments from consumers.
In 2017, the NEA formed Task Force Duterte Northern Davao Power to oversee the operations and management of Daneco. The task force was also tasked to fix Daneco and institute the needed reforms in the financial, institutional and technical areas of its operations.
A former top performing electric cooperative, Daneco covers the provinces of Davao del Norte and Compostela Valley including Tagum City and Island Garden City of Samalserving 199,627 consumer connections as of March 31.
