TAGUM CITY, Davao del Norte – A task force, which was created to save ailing electric cooperatives in the country, has expressed optimism on the improved collection efficiency and systems loss recovery of the Davao del Norte Electric Cooperative (Daneco) Inc.
Task Force Duterte: Northern Davao Power, which was formed last year by the National Electrification Administration (NEA) to help electric cooperatives facing financial and legal problems, noted that Daneco’s collection amounting to PHP414.724 million for May 2018 was the highest for the once-ailing power utility firm.
In a report presented during the 2nd executive session of the Task Force Duterte at Miko’s Brew in Tagum City on Tuesday, Mario Angelo Sotto, the NEA project officer for Daneco, also bared that the May collection represented a 98-percent collection efficiency for the local power utility.
“Daneco never collected this much,” Sotto noted.
Except for February, Daneco also registered an increasing month-on-month collection. In terms of sales, Daneco also posted the highest collection in May at PHP422.36 million.
Sotto said the task force is optimistic that Daneco will continue to improve its collection efficiency if it continues to implement programs laid down by the task force
The high collection, he said, was due to measures implemented by the task force, such as the full implementation of the “Balik Loob Program,” which was aimed at getting back consumers who were paying to Daneco-CDA (Cooperative Development Authority), to adjust all unpaid interests and surcharges and to freeze the arrearages of all local government units under Daneco’s coverage area.
Task Force Duterte is led by its chairman, Eric Bucoy, who noted the strong support of Governors Anthony del Rosario of the Davao del Norte and Governor Jayvee Tyron Uy of Compostela Valley, where Daneco operates.
Governor Uy assured the task force of his support to achieve quality service. Meneses Nuñez, who represented Gov. Del Rosario, also underscored the importance of improving the service of Daneco “because power is a huge factor to achieve economic progress.”
Nuñez said the provincial government also wanted to put an end to the Daneco NEA-Daneco CDA conflict because it may affect electric services in the long run.
Daneco’s franchise covers 6,662,990 sq meters, with offices serving two cities and nine municipalities in Davao del Norte, and seven municipalities in Compostela Valley.
Daneco has so far energized 376 barangays with an average household connection of 197,880. The total consumers of Daneco are about 400,000. Its existing power suppliers include the National Power Corporation-Power Sector Assets and Liabilities Management Corporation (NPC-PSALM), Therma South Inc, EEI Power Inc, FDC Misamis Power Corporation (coal), San Miguel Consolidated Power Corporation, Mindanao Grid Corporation and NPC – Talicud.
Systems loss recovery
The major focus of the task force is for Daneco to recover systems loss incurred for many years starting 2012. Systems loss includes pilferages. Sotto said there was a slight improvement in recovering the 21-percent system loss in Daneco’s operation.
So far, Daneco was able to recover 621,138.16 kilowatts per hour per month equivalent to PHP6.633 million.
According to Sotto, every one percent loss is equivalent to PHP4 million per month. Recovery, he said, would redound to rate reduction.
Assistant Secretary Redentor Delola of the Department of Energy (DoE) said if all consumers of Daneco pay religiously, monthly collections could reach up to PHP500 million.
Delola said it was important to improve the collection and recovery of systems loss in order for Daneco to pay its debts.
So far, Delola said, Daneco has an outstanding PHP2.1 billion debt with its suppliers.
NEA Administrator Edgardo Masongsong said the problem with Daneco NEA and Daneco-CDA is almost done with the all-out support of the local chief executives.
Masongsong, however, admitted that Daneco is still facing a bigger challenge in systems loss recovery.
As part of its management changes, NEA has designated Agusan del Sur Electric Cooperative (Aselco) General Manager Engr. Emmanuel Galarce as Daneco’s Chief Operations Officer (COO); and Agusan del Sur II Electric Cooperative (Surseco II) General Manager Iglorio Hinayon as Daneco’s Chief Executive Officer (CEO). Other new management officers were also designated with Sotto functioning as the deputy COO for the administration-finance department. (Lilian C. Mellejor/PNA)
