Reacting to the assumption of claims of a P0.30/kwh increase
The statement of the Energy and Regulatory Commission (ERC) during the committee hearings that there would be a P0.30/kwh increase in the franchise area of Davao Light should it take over Nordeco’s area was sensationalized by Nordeco’s supporters.
They appear to have neglected to mention the part of the statement that this will happen ONLY IF Davao Light absorbs ALL the power contracts of Nordeco.
For the record, ERC declared that they could avoid power raise due to the provision on the proposed law that permits Davao Light to conduct a “competitive selection process” for new cheaper power supply contracts than Nordeco’s current suppliers. An executive of AboitizPower and lawmakers also reiterated this during the hearing.
ERC has emphasized that House Bill 6740 that aims to expand the franchise of Davao Light to eight additional areas will not change electricity prices, as they follow through on their commitment to supporting consumers in sustainable electricity bills even in times of price hikes.
Davao Light’s overall power rate could actually be lower, as stated by the ERC, with the variable of the private power distributor expanding its reach to more people in a larger area. This lowers charges, which subsequently lowers power rates.
With this, it can be concluded that the claims that there will be an increase in the power rate of Davao Light if it takes over the franchise area of Nordeco are baseless.
SunStar Davao, a multi-awarded newspaper in Davao City, did not have the opportunity to cross-check these claims forwarded by the National Center of Concerned Electric Consumers (NCCECO) Chairman, Rene Boy S. Abrea, about the P0.30/kwh increase.
SunStar Davao is under pressure to verify the claims of Nordeco and its supporters. This issue may have been solved quickly by an urgent call to DCM.
Public welfare over private power
The top priority of the government is their people’s need for affordable and steady power. It will drastically improve the quality of life of the Davao del Norte and Davao de Oro regions to pass this proposed bill.
The Supreme Court has well established that canceling Nordeco’s franchise is constitutionally fair for their inability to serve the people’s needs. This grants the government the power to find a better-suited and competent power distributor to give the franchise to.
Nordeco is fighting an uphill battle to keep its franchise following its failure. Moreover, the misinformation spreading campaign deployed by their supporters further paints them as detrimental to the people’s rights to access truth and reliable, cheap power.
The government and its appointed institutions are committed to championing the interest of the general public.
Source:
Ryan Amper
Convenor
Davao Consumer Movement
