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PHILRECA PASSES RESO VS PRIVATE TAKEOVER OF COOP

The Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA) has passed a resolution opposing the private takeover attempts of an electric cooperative (EC) in the province of Davao del Norte.

The PHILRECA Board of Directors recently approved Resolution No. 3-13-21 expressing their “full support to the existence” of the Northern Davao del Norte Electric Cooperative, Inc. (Ang Bag-ong DANECO) and opposing any threat of private firm takeover.

“The takeover of NORDECO by a for-profit company will undoubtedly increase the electricity rates and bulk of its financial expenses will be shouldered and burdened by the member-consume-owners alone.”

“After years of challenges that tested the strength, will, resolve and capacity, NORDECO was able to recover and improve on its operations and services – lowered systems loss, increased collection efficiency, cheaper power rates, among others,” the resolution stated.

PHILRECA, the umbrella organization of 121 ECs nationwide, explained that NORDECO was able to break from its previous records and improve its operations and services to the member-consumer-owners (MCOs).  

“Despite the breakthroughs and accomplishments that NORDECO has made for the power industry and its strong will to develop, it is still being threatened of an entry of a private for-profit company,” it added.

It described the takeover threat as “unnecessary and unwarranted,” saying NORDECO has been performing its functions pursuant to Republic Act No. 9136, or the Electric Power Industry Reforms Act of 2001, and is the duly authorized entity to provide power distribution services and connections to MCOs.  

“Despite the breakthroughs and accomplishments that NORDECO has made for the power industry and its strong will to develop, it is still being threatened of an entry of a private for-profit company.”

PHILRECA also denied the malicious accusations, biases and false information that have been made against NORDECO on social media, which it said were intended to damage the reputation and discredit the electric coop.

“Such acts are not only untrue but [do] not benefit nor improve the current situation of electricity within the franchise area,” the organization said, adding that these allegations and takeover attempts should be stopped and rejected.

“The takeover of NORDECO by a for-profit company will undoubtedly increase the electricity rates and bulk of its financial expenses will be shouldered and burdened by the member-consume-owners alone,” PHILRECA stressed.

NORDECO is the power distributor of the provinces of Davao del Norte and Compostela Valley including Tagum City and Island Garden City of Samal.

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