DANECO HAS P2.1-B DEBT

The debt of the electric cooperative reached P2 billion due to the internal conflict between two factions within Daneco

The Davao del Norte Electric Cooperative (Daneco) still owes P2.1 billion to its power suppliers despite increased efforts on collection.

Daneco has 197,880 household connections covering most parts of Davao del Norte and the entire Compostela Valley. The company was in the middle of an administrative controversy between a group of officers that sought accreditation with the Cooperative Development Authority (CDA) and another under NEA.

NEA project supervisor Mario Angelo M. Sotto said the internal dispute of the electric cooperative as one of the major factors of their debt.

Sotto said on Monday, November 19, 2018, during Kapehan sa Dabaw at SM City Davao that their consumers were confused as to whom to pay, thus resulting to a lower collection rate.

“Well, actually they (CDA) are collecting five percent of the total amount. Meaning to say that’s around P20 million or more lost revenue,” Sotto said, adding Daneco is hopeful that with the issued cease-and-desist order against Daneco-CDA, they can catch up with their financial obligations.

Sotto said they noted an increase in their collections since May. Presently, for the month of October Daneco has already collected around P443 million. NEA is targeting for a P450-million collection this November.

“Kase ngayon mas alam na nila kung kanino magbabayad (Because now, they know whom to pay),” Sotto said.

Sotto added because of their increased efforts on collection, they have already reduced their debts to P2.1 billion from P2.7 billion.

As of 2017, Daneco has power contracts with Power Sector Assets & Liabilities Management Corporation (Psalm), Therma Marine, Inc. (TMI), Therma South Inc. (TSI), EEI Power Corporation, FDC Misamis Power Corporation, and Mindoro Grid Corporation (MGC).

However, their contract with Psalm and TMI have already expired in December 2017.

Last September 1, Therma South Inc. (TSI), a subsidiary of Aboitiz Power also suspended their power delivery to Daneco due to their P200 million financial obligations to the baseload power plant.

Well, actually they (CDA) are collecting five percent of the total amount. Meaning to say that’s around P20 million or more lost revenue.

MARIO ANGELO M. SOTTO NEA project supervisor