THE PARTNERS For Affordable & Reliable Energy (PARE) is calling on the Northern Davao Electric Cooperative (Nordeco) to be transparent toward its member-consumer owners following the debt it incurred with the Interim Electricity Market Operator of the Philippines (IEMOP).
Public records from the IEMOP show that Nordeco was suspended from the Wholesale Electricity Spot Market (WESM) effective September 25, 2025, pursuant to WESM Rules Clause 3.15.8, due to unpaid energy settlement obligations. Media reports and consumer advocates have cited figures from IEMOP indicating that Nordeco’s arrears have reached over ₱318 million and were among the largest recorded obligations in WESM as of the second half of 2025.
Nordeco refuted these claims, saying these were “fake news” despite being published on IEMOP’s official website.
Meanwhile, in a letter dated October 29, 2025, the IEMOP said Nordeco has not been disconnected and continues to source energy from WESM.
If Nordeco insists that these reports are ‘fake news’ or misleading, then the cooperative must stop speaking in generalities and start presenting figures. Consumers deserve a detailed line-by-line explanation, how much is really owed, what has been paid, and what is the concrete settlement plan so that these liabilities are not quietly passed on to households and small businesses.”
At the same time, PARE notes that Energy Regulatory Commission (ERC) and the National Electrification Administration (NEA), as the energy regulators, are accountable for inefficiencies of electric cooperatives that led to the suffering of consumers.
Franchise war while consumers suffer
The WESM controversy comes on top of long-standing complaints about brownouts and high power rates in Nordeco’s franchise areas. Business groups and local stakeholders have openly opposed any move to renew Nordeco’s franchise, citing poor service quality and the
economic damage caused by outages and high electricity costs. Supporters of Davao Light’s expansion under Republic Act No. 12144 argue that consumers would benefit from more reliable and lower-cost power under a different distribution utility.
“While Nordeco and Davao Light trade legal briefs and press releases, people on the ground are losing livelihoods, suffering hours in darkness, and paying one of the highest rates in the region,” Satur said. “This is no longer just a technical or legal issue, it is a political and regulatory failure.”
Regulators cannot stay neutral
PARE underscored that the ERC and the NEA have clear mandates to protect consumers and enforce a least-cost, reliable power supply under the Electric Power Industry Reform Act of 2001 and related issuances.
ERC and NEA cannot remain on the sidelines while consumers are used as collateral in a franchise war. Before any franchise renewal, extension, or new arrangement is even considered, regulators must publicly answer three non-negotiable questions.
PARE called on ERC and NEA to issue a clear, public statement on:
1. WESM obligations and suspension – the verified amount of Nordeco’s WESM arrears, the status of payments, and the agreed pathway to full settlement, in coordination with IEMOP.
2. Compliance with standards – Nordeco’s performance audit vis-à-vis technical, financial, and service benchmarks, based on audited data and consumer complaints, not competing narratives.
3. Consumer safeguards and roadmap towards reliable power, concrete protections to ensure that any decision on Nordeco’s franchise or any transition arrangement will prioritize reliable, least-cost power and shield consumers from paying for mismanagement and unresolved debts.
Put consumers at the center
PARE emphasized that the core issue is not which company’s logo appears on the bill, but whether families and businesses can depend on power that is both reliable and affordable.
Regulators, energy players, and political leaders must be reminded: your mandate is to protect consumers, not franchises. If you are tired of this war for power, where people are the ones who lose, speak up. Ask your electric cooperative or distribution utility to explain their WESM exposure, their power supply contracts, and why your rates are so high, and demand that ERC and NEA take a firm, public stand before any franchise decision is made.
(Partners for Affordable and Reliable Energy (PARE), a non-government, non-partisan consumer advocacy group that promotes affordable, reliable, and transparent electricity for Filipino consumers.)
Nic Satur Jr
chief advocate officer
PARE
nsaturjr.pare@gmail.com
09271448048
