Consumer and Biz Groups Call Out Nordeco over WESM Suspension and Poor Service

October 7, 2025
Balitang Mindanao
Public Policy
0

The Northern Davao Electric Cooperative (Nordeco) has been suspended by the Independent Electricity Market Operator of the Philippines (IEMOP) from participating in the Wholesale Electricity Spot Market (WESM) because of unpaid bills worth hundreds of millions of pesos.

According to IEMOP, Nordeco’s unpaid energy settlement reached ₱379.9 million as of late August. The figure stood at ₱337.6 million by the end of September, the largest unsettled balance among WESM participants nationwide. The suspension took effect on September 25, 2025.

The action effectively bars Nordeco from transacting in the spot market, limiting its ability to source power competitively. Considering that nearly 50 percent of Nordeco’s power supply came from WESM last July, the suspension raises concerns about service reliability across its coverage areas, including Davao del Norte and Davao de Oro.

(Also read: Why Davao Needs Reliable Power Now)

Consumers demand accountability

The Davao Consumer Movement (DCM) has urged Nordeco to explain the growing arrears and their impact on consumers. The group also called for greater transparency in how the cooperative manages its financial obligations and power procurement.

“What is alarming is Nordeco did not inform consumers that it has been suspended from participating in WESM. The notice was posted on September 17, 2025, but Nordeco did not make any posts regarding it,” the energy advocacy group said in a Facebook post.

“We demand that Nordeco clarify this matter. No clarification shows a lack of accountability [and a] lack of transparency—a disrespect to the member-consumer owners,” DCM continued.

(Also read: How Reliable Power Fuels Mindanao’s Rising Economy)

Business sector joins calls for reform

Echoing consumer frustrations, the Tagum City Chamber of Commerce and Industry Inc. (TCCCII) expressed strong opposition to Nordeco’s pending franchise renewal.

“Businesses in Tagum City have suffered for a long time under a power regime where power service is inefficient and expensive,” the business group said in a statement.

“The growth of local businesses has been withheld by the high power rate and frequent power outages of the Northern Davao Electric Cooperative (Nordeco) for the past years,” it continued.

The chamber emphasized that it has been calling on Nordeco to resolve its operational issues, but that its concerns have fallen on “deaf ears.”

The chamber cited persistent power interruptions, high rates, and poor customer service as key reasons for opposing Nordeco’s congressional franchise renewal.

“We say enough is enough. Tagum City and the rest of Davao del Norte need to move forward,” the group said. “The Chamber believes that there needs to be a change in the power regime in Davao del Norte.”

“Having a power regime where electricity is affordable, stable, and reliable is what we need to move forward,” it continued.

(Also read: Mindanao’s Energy Dilemma: Bridging Surplus to Sustainable Growth)

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