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Consumer group Partners for Affordable & Reliable Energy (PARE) is calling on the Northern Davao Electric Cooperative (Nordeco) to fully disclose its financial obligations to the Wholesale Electricity Spot Market (WESM), following reports that the cooperative incurred hundreds of millions of pesos in unpaid settlements.
Public records from the Interim Electricity Market Operator of the Philippines (IEMOP) show that Nordeco was suspended from WESM effective September 25, 2025, under Clause 3.15.8 of the WESM Rules due to unpaid energy settlement obligations. Media reports and consumer advocates, citing IEMOP data, have placed Nordeco’s arrears at more than ₱318 million, ranking among the largest outstanding WESM obligations recorded in the second half of 2025.
Conflicting Statements
Nordeco has disputed these figures, describing the reports as “fake news,” despite the information appearing on IEMOP’s official website. In a separate development, IEMOP said in a letter dated October 29, 2025 that Nordeco has not been disconnected from the market and continues to source power through WESM.
PARE said the conflicting statements underscore the need for detailed public disclosure. The group said Nordeco should move beyond general denials and present a clear accounting of its liabilities, including how much is owed, what has already been paid, and the concrete plan for settling remaining obligations.
“Consumers deserve a line-by-line explanation,” PARE said, warning that unresolved debts could eventually be passed on to households and small businesses through higher power rates.
Regulators’ Accountability
The group also pointed to the Energy Regulatory Commission (ERC) and the National Electrification Administration (NEA), saying both agencies share responsibility for addressing inefficiencies in electric cooperatives that result in service disruptions and higher costs for consumers.
The WESM controversy comes amid long-standing complaints over frequent brownouts and high electricity rates in Nordeco’s franchise areas. Business groups and local stakeholders have opposed proposals to renew Nordeco’s franchise, citing economic losses linked to unreliable power supply.
At the same time, supporters of Davao Light’s expansion under Republic Act No. 12144 argue that opening parts of the franchise area to another distribution utility could improve reliability and lower costs.
“While Nordeco and Davao Light trade legal briefs and press releases, people on the ground are losing livelihoods, suffering hours in darkness, and paying one of the highest rates in the region,” PARE spokesperson Nic Satur Jr. said. “This is no longer just a technical or legal issue; it is a political and regulatory failure.”
Seeking Explanations
PARE said ERC and NEA have clear mandates under the Electric Power Industry Reform Act of 2001 to protect consumers and ensure a reliable, least-cost power supply. The group urged both agencies to issue a public statement addressing three areas before any franchise renewal or transition is considered.
These include the verified amount and settlement status of Nordeco’s WESM obligations in coordination with IEMOP; the cooperative’s compliance with technical, financial, and service standards based on audited data and consumer complaints; and concrete safeguards to protect consumers from bearing the cost of mismanagement or unresolved debts.
PARE stressed that the central issue is not which utility operates in the area, but whether consumers receive reliable and affordable electricity. The group called on regulators and political leaders to put consumer welfare at the center of franchise and policy decisions.
Source:
https://www.mindanaotimes.com.ph/pare-calls-out-nordeco-for-lack-of-transparency/
https://www.sunstar.com.ph/davao/nordeco-suspended-from-wesm
