News and Updates

NEA activates task force to take over Davao del Norte power coop

March 6, 2017


National Electrification Administration (NEA) Chief Edgardo R. Masongsong said that a task force is officially being activated by the Agency on March 01, 2017 to take over the operations and management of the Davao del Norte Electric Cooperative. Inc. (Daneco).

At the NEA-ECs Media Relations Convocation held on February 21, 2017, Masongsong said, “we are forming Task Force Duterte Northern Davao Power to decisively bring closure to the legal problems that have hounded Daneco, and that have consequently affected its Member-Consumer-Owners (MCOs).”

“This is consistent with the provisions of the Republic Act 10531, which empowers NEA to supervise all electric cooperatives, whether NEA or CDA-registered, as well as with the decisions of the Supreme Court in G.R. Nos. 213243-48 and G.R. No. 213740, which uphold NEA’s juridical role to manage Daneco.”

According to the Administrator, “Task Force Duterte Northern Davao Power will form part of the Agency’s strategies to effect transparency and reform in the operations of electric cooperatives nationwide, and will be aligned with the pro-people cause of President Rodrigo R. Duterte.”

Specifically, the task force is directed to implement the decision of the Supreme Court, as well as secure a memorandum of support from the Philippine National Police (PNP), Armed Forces of the Philippines (AFP), Department of Interior and Local Government (DILG), Department of National Defense (DND), Cooperative Development Authority (CDA), and other government agencies in undertaking actions that will lead to the cessation of CDA’s role in Daneco’s operations.

It will likewise be given powers “to review the governance policies and practices of the cooperative to ensure that its performance meets or even exceeds the parameters and standards set by the NEA for all power coops.”

Under the EC’s Performance Assessment, power coops are required to have at least one month power and non-power cost in their cash general fund. They are also mandated to have at least 95% collection efficiency and a system loss below the 13% cap, and must register positive standing in their profitability and net worth. Their accounts payable must also be current or restructured current.

“As we continue to build a platform of change, NEA will see to it that the welfare of the power consumers is consistently given attention and that our power coops are capacitated to respond to the growing expectations of their membership,” Administrator Masongsong said.

“NEA will exert all efforts to ensure that our power coops become vital link to our goal of guaranteeing reliable, sustainable, and affordable power supply for all.” ###