DAVAO CITY — Electric cooperatives (ECs) deemed “ailing,” based on the parameters set by the National Electrification Administration (NEA), must be penalized and that includes even the Northern Davao Electric Cooperative, Inc. (Nordeco), according to Sen. Imee Marcos.
According to the NEA, “red” or “ailing” ECs are those with a negative net worth for the last three years; accumulated 90 days arrears in power supply purchases and transmission charges; unable to provide electric service due to technical and/or financial inefficiencies and/or institutional problems; and unable to efficiently perform its electric distribution utility obligations.
Speaking at a press conference at The Royal Mandaya Hotel, here, last Saturday, Ms. Marcos said it is within the authority of the NEA to penalize such ailing ECs, citing past instances when it did so.
“They (NEA) intervened — dissolved the board and took out all the members including the director general (and) started anew,” she said partly in Filipino. “I am hopeful that this can be done in the rest of the ailing ECs including Nordeco.”
Meanwhile, during the recent deliberation by the Committee on Legislative Franchises, the legal counsel of Nordeco had warned of a possible constitutional crisis if four bills seeking to amend the franchise areas of electricity distributors in Mindanao are to be passed.
“The Constitution does not allow laws that impair contracts… existing contracts of NORDECO will be substantially impaired,” Atty. Jeorge V. Rapista, legal counsel for Nordeco, said as a result of passing House Bill Nos. 5077, 6740, 6995, and 7047 — all proposing to expand the franchise area of Davao Light and Power Company, Inc. (Davao Light).
As a reaction to that, Ms. Marcos explained that, in principle, a franchise is a special privilege from the government which can be withdrawn at any time or diminished at any point for the reason of the public good. — Maya M. Padillo
