Davao Light and Power Company is actively rehabilitating the power distribution facilities of the Northern Davao Electric Cooperative (Nordeco). This move comes after the Energy Regulatory Commission (ERC) issued a cease-and-desist order affecting Nordeco’s operations.
Strategic Compliance and Upgrade Plans
We are thankful that Nordeco complied with the mandate of the ERC to cease operations in several areas. We started the rehabilitation process already.
Engr. Enriczar Tia, President and COO of Davao Light
Engr. Enriczar Tia emphasized the importance of these upgrades for effective operations in the newly acquired franchise areas. The facilities inherited from Nordeco are in poor condition, necessitating a comprehensive upgrade.
- Nordeco will cease operations in Tagum City, Samal, and several municipalities in Davao del Norte.
- Davao Light has already taken over distribution services in Talicud Island.
While Nordeco will halt operations in certain regions, it will continue to serve its members in Davao de Oro, unaffected by the ERC order. The transition is crucial for Davao Light as it enhances its service capabilities.
The rehabilitation process is expected to be gradual, given the extent of the dilapidated facilities. Tia noted that full upgrades will take time, but are essential for reliable service.
Davao Light's expansion includes managing electricity distribution for Talicud Island, where power demand is currently between 500 to 600 kilowatts. Tia reassured that this expansion will not lead to increased distribution charges, which have remained stable since 2013.
He explained that the expansion may potentially lead to better pricing through economies of scale, as the company seeks more suppliers in the bidding process.