THERE is no truth to the claims of Aboitiz Power Corporation that the Northern Davao Electric Cooperative (Nordeco) has plans to sell its electric cooperative for about a billion pesos.
The clarification stemmed after Anton Mari Perdices, Chief Operating Officer of the AboitizPower Distribution Utilities allegedly disclosed in a business mainstream news outlet on October 13, 2024, that Nordeco had personally approached them to acquire the company for an estimated value between P700 million and P1 billion.
“We categorically deny Mr. Perdices’ allegations. These are defamatory and clearly meant to besmirch Nordeco's reputation. We have remained silent for some time, but these malicious tactics can no longer be tolerated,” Nordeco’s Acting General Manager Elvera S. Alngog declared in a statement, further stating that AboitizPower’s senior executive was just spreading malicious and unverified information with no strong basis at all.
“It is unfortunate that they resort to such underhanded tactics to advance their interest. We have successfully defended Nordeco in the past, and we will continue to stand firm, with unwavering faith and resolve, for the glory of God,” Alngog maintained.
The goal to give Davao residents access to more affordable and dependable electricity is what drove the firm to make the acquisition, according to Perdices in an interview with Bilyonaryo.com.
“It’s no secret that we’ve been approached by [customers] of the coop in Davao, Nordeco. Asset purchase alone will be somewhere between P700 million to a billion to purchase the assets and then we would still need to do a technical due diligence to see what it could take to raise the standards to our level,” Perdices said.
“As a consumer, it’s hard to swallow that you are here under Nordeco and across the street is Davao Light. These guys are getting power 24 hours a day at a cheaper price and why can’t we?” he emphasized while comparing Nordeco’s service to Davao Light Power Company (Davao Light).
Perdices added that comprehensive technical due diligence would be needed for the acquisition in order to evaluate the current infrastructure and identify the investments required to raise Nordeco's standards to level those of AboitizPower, adding that distribution transformers, line quality, and metering systems would be important areas of need.
He also noted that the proposed acquisition would have to pass the legislative procedure, which would need the president, the Senate, and Congress to approve it.
Currently, numerous lawsuits and customer complaints have been brought against Nordeco, which has some of the highest electricity rates in the country. Additionally, the community it is meant to serve has seen its economic potential weakened by its inconsistent and poor service.
Due to a number of problems, including frequent brownouts and subpar customer service, six Davao local governments — Tagum City, Samal, Kapalong, New Corella, San Isidro, and Talaingod — have signed resolutions requesting a new electricity supplier to take the place of Nordeco. DEF
