Daneco-NEA’s Guya: Blackout coming due to indebtedness

Posted in daneco problem with tags on July 26, 2014 by cha monforte

june 17, 2014

The National Electrification Administration project supervisor to Davao del Norte Electric Cooperative has warned that the electric cooperative would be disconnected of power by its main supplier PSALM anytime soon this month if it continues to pay low to its ballooning power obligations.
NEA project supervisor Engr. Godofredo Guya bared in press conference Wednesday last week in Tagum City that Daneco has only about 70 percent collection efficiency rating while it is being saddled by a ballooning power obligations from its four power suppliers amounting at press time to a total of P767.01 million, of which P601.37 million is due for the Power Sector and Assets Liabilities Management (PSALM).

Daneco-NEA officials said that throughout the franchise area in Davao del Norte and Compostela Valley, Daneco has more than P1.1 payables from member-consumers.
Guya said that the Department of Energy has “apparently given go signal” to PSALM to cut its power supply to Daneco.
The other week, PSALM president and chief executive officer Emmanuel R. Ledesma in a statement said that PSALM requested the DOE to issue a notice of disconnection against Daneco due to the failure of Daneco to comply with the financial obligations under their power supply agreement.
Guya, however, did not show any written letter from PSALM addressed to Daneco-NEA relating power disconnection.
Daneco-NEA OIC general manager Benedicto Ongking has been sending letters to elected officials in the two provinces showing its own encoded data on the power obligations to various power suppliers, without the photocopy of PSALM’s letter.
During the press conference, Guya and Daneco-NEA officials bared that Daneco has already an outstanding power obligation to Engineering Equipment Inc. (EEI) Power Corp. amounting to P101.93 million.
It was a first revelation on Daneco’s obligations to EEI since the latter started supplying Daneco during peaking hours October last year amid long daily rotational brownouts. EEI is a diesel-powered 13-megawatt independent power producer based in Tagum City.
EEI was contracted by the previous pro- Daneco-CDA board of directors led by late Dean Briz before the conflict, but the implementation of supplying power to Daneco was finalized by the Daneco-NEA.
Besides, Daneco has also power obligations of P50.94 million from the Aboitiz-owned Therma Marine, Inc. (TMI) and P12.76 million from the National Grid Corp. of the Philippines.
Daneco failed to pay P576 million outstanding debt to PSALM covering the period March 2013 to April 2014, causing Daneco–NEA in June 2013 to seek for loan restructuring of the P275 payables with a monthly amortization of P8.15 million.
PSALM, however, said that Daneco-NEA “had dutifully paid” the monthly amortization while the Daneco-CDA group failed to settle its power bills, the latest of which being given in December 2013.
PSALM apparently is seeing Daneco as one entity being the main power generating supplier since then when it was yet the original, bigger National Power Corp.
So with the other secondary power suppliers whose contracts to supply power were made before July 2012 when Daneco was still one entity, without divisive infighting over who is legitimate between Daneco-NEA and Daneco-CDA groups.
PSALM and TMI supplies power to Daneco at an average of 30 and 15 megawatts, respectively. (Rural Urban News/Cha Monforte)

NEA not recognizing consumers’ payments to Daneco-CDA faction

Posted in Uncategorized with tags , , on June 4, 2013 by cha monforte

may 27, 2013

Power blackout feared in Davao Norte, Comval as Daneco’s debt balloons to P300 M
By Cha Monforte, Rural Urban News

MONTEVISTA, Compostela Valley- The National Electric Administration bared Monday in a press conference that it is not recognizing the payments made by member-consumers to the faction separating from the main Davao del Norte Electric Cooperative (Daneco).

Engr. Godofredo Guya, NEA Project Supervisor told mediamen that the Daneco-CDA faction that is based in Tagum City has been undercharging power consumers by not including taxes, surcharges, penalties and others that were supposed to be charged in electric bills.

He said this is contrary to rules and regulations of the Energy Regulatory Commission saying that “what has been approved by the ERC should not be increased or decreased”.

He added that the main Daneco-NEA has already submitted this undercharging issue for resolution by ERC possibly next week.

He said that since the problem of seeing two Daneco agencies claiming to be legitimate started it turned out that it is only Daneco-NEA that has been paying obligations to power suppliers such as the PSALM, NCGP and Therma Marine.

He bared that because of this situation Daneco’s outstanding power bill obligations to the three have ballooned now to more than P300 million.

“We don’t want this situation to prolong as Daneco might suffer the same fate with the electric cooperatives in Abra and Albay where the provinces they cater have experienced total blackout,” he added.

“We will make disconnection to protect those paying religiously to Daneco-NEA,” he said referring to power consumers who opted to pay to the Daneco-CDA.

However, there have been many reported re-connection efforts made by Daneco-NEA to those delinquent members just disconnected of power by Daneco-CDA.

The NEA project supervisor said that Daneco-NEA will commence active disconnection activities by July after its “massive collection and massive information dissemination activities”.

He said that Daneco-NEA “is the only agency that is recognized by the ERC to collect fees.”

Moreover, Guya informed that NEA “is now too powerful” under Republic Act No. RA 10531 or the NEA Charter, which was signed into law by President Aquino just last May 7, 2013. Its implementing rules and regulations are now being drafted by NEA.

Under the law all electric cooperatives in the country, whether registered with the CDA, Securities and Exchange Commission or under NEA, would be under the supervision of NEA.

Guya said that under the new law Daneco-CDA would be forced to come to terms under NEA’s regulatory powers besides that Regional Trial Courts are already prohibited to hear any case relating electric cooperatives but only by the Court of Appeals.

He said that in looking into the collections made by Daneco-CDA officials they have to present audited financial statement and show how they spent what they collected.

“If you cannot correct this, in the future, we will be in total darkness,” he said as he appealed to public officials, member-consumers and other stakeholders to help Daneco resolve the complicated problem it is in now.

Daneco has some 125,000 member-consumers and services the whole province of Compostela Valley and most of the towns and cities of Davao del Norte except Panabo City and the towns of Carmen, Sto. Tomas and Braulio E. Dujali

On April 30, 2012 the NEA’s five -man Board of Administrators chaired by then Dept. of Energy Secretary Jose Rene Almendras dismissed 9 members of the board of directors and former OIC GM Felix Hibionada after they were found guilty of grave misconduct and gross neglect of duty stemming from an administrative case filed by a group of member-consumers. Those dismissed were initiating to convert Daneco into stock cooperative under the CDA.

Starting July 2012, two factions of Daneco leadership have been warring against each other resulting to the emergence of Daneco-CDA and Daneco-NEA groups and two sets of managements, board of directors and collection activities.

The NEA-sacked officials trooping under Daneco-CDA stuck on and engaged in series of court and quasi-judicial battles while physically holding for more than six months the Daneco Tipaz office in Tagum City until the office was forcibly closed by a sheriff backed up by provincial police following a break-open-closure order from the Court of Appeals.

However, the Daneco-CDA faction subsequently set up their new office at the Philippine Cooperative Union (PCU) office in Barangay Magdum, Tagum City and continued their collection activities.

The faction set up collection center in Gaisano Mall of Tagum directly competing with the Daneco-NEA collection in the same mall. Also, it set up a collection units in several barangay halls in Tagum City.

The Daneco-CDA’s new officials elected in October. 21, 2013 general assembly, no longer those sacked ones, claimed that they still operate legally as the CDA registration was only temporarily suspended by the CDA and pending Supreme Court’s resolution of the appealed case relating to the Writ of Preliminary Injunction issued earlier by the Court of Appeals (CA).

Late last year RTC Tagum Judge Tehano Ang ruled an either pay to Daneco-CDA or to Daneco-NEA, which was subsequently assailed by the latter at the CA resulting to at least four special civil cases relating the legality of the CDA registration.

Last May 10, 2013, the 23rd Division of CA ruled to consolidate the special cases on certiorari and prohibitions pending before its sala to avoid further confusion and commanded the public respondent RTC Judge Ang to desist from conducting further proceedings in the civil actions.

The 23rd Division of CA has still to rule on this consolidated case at press time. – (Rural Urban News/Cha Monforte)

Why not finally divide Daneco into Daneco 1 and Daneco 2?

Posted in daneco-cda, daneco-nea with tags on November 12, 2012 by cha monforte


By Cha Monforte

 It’s good to hear that Congressman Anthony del Rosario is always shuttling back and forth, from Manila to his district, vice versa every week. He said during the Kapihan last Thursday that he’s been busy with his projects, one of which is electrification.  The downer side in his news is that the P30-million electrification fund he had accessed from the National Electrification Administration might not be released at all due to the persisting problem in Daneco. The Daneco problem- huhum, it’s breaking up into 2 managements, 2 OIC-GMs, 2 board of directors, 2 sets of employees, 2 collectors, etc  for 1 set of member-consumers- pesters and confuses the public, especially its owners- the dear member-consumers.  

I must confess to my dear readers that writing a news about Daneco these days is such a hard, difficult undertaking. An objective writer, journalist worth his salt, must swear and work to have balance in his presentation of the news. Sometimes though, because journalism is fast even if weekly, one can miss a point or two, or it depends on the newsworthiness of the press statements of the sources he quoted. That’s why a reader may sense that the writer is somehow bias to Daneco-NEA or Daneco-CDA. But that should not be the end of the story. After all, the Daneco problem is a long-running story.

Readers are advised that in this case, the worthiness of the press statements of the sources come as a good, largely unread material that needs ventilation or elucidation for the readers to appreciate how deep and big the Daneco problem is, so that the public, the Daneco member-consumers and  especially our elected public officials can be egged out to exert efforts, at least concern toward solving the Daneco problem ASAP. 

The problem now is that the Daneco problem has apparently turned violent as when men identified with the Daneco-CDA faction stormed last week the Daneco office in IGACOS held by Daneco-NEA faction resulting to the wounding a security guard of the latter and the filing of frustrated murder cases against some 7 suspects. It seems there’s no turning back anymore from this ugly war, this divisive tug-of-war between the Daneco-NEA and Daneco-CDA factions. While their court battles have been ongoing towards the Supreme Court after that Court of Appeals’ WPI (writ of preliminary injunction) to Daneco-CDA and subsequently, the suspension of CDA registration, the Daneco-CDA faction is still much on the hold and control of Daneco’s Tagum office at Tipaz as of press time.  

This quarter sees that it doesn’t mean that this Daneco problem can’t be solved out of the court. That is,  if parties would only be flexible than be legally combatant and especially if Daneco-CDA faction wouldn’t be so filibustering legal procedures even a sheriff’s execution of court order.  But both protagonists would seem to be legally obsessed! If that’s the case we can’t see an out-of-court settlement in the near horizon.

But this doesn’t mean that Malacanang can’t intervene even while parties are in court. I’ve read a case of an electric cooperative questioning the intervention of Malacanang to CDA’s favorable action to an EC (I just lose the thread in the internet and I’m in a hurry). To make the story short, they reached the Supreme Court, and the SC ruled that Malacanang can’t unmake what the CDA made for an EC. OMG, the Daneco-CDA can replicate this if in case new DOE Secretary Jericho Petilla comes up with a presidential directive to intervene and solve the Daneco problem, favoring Daneco-NEA, of course since he’s a DOE sec. The Daneco-CDA faction can buy more time, and hold at bay Daneco’s Tipaz office. But since the CDA had suspended Daneco’s CDA registration, their time bought can only be short (but who knows they can lengthen their stay given that they have the Tipaz collections to carry on a protracted legal fight).

I have this unsolicited proposal and this might be the shortest route towards solving the Daneco problem. Why not divide Daneco into 2 entities? Daneco 1 for Comval areas for the Daneco-NEA, and Daneco 2 for Davao del Norte areas for Daneco-CDA? The Daneco in IGACOS would be better sold to Aboitiz/Davao Light and the proceeds be would divided equally or proportionately between Daneco 1 and Daneco 1. How’s this proposal?

#Hash  & Tags: I forgot that the name of my Visayan column in tabloids is Tsa Pwera, so I’m having a new column name that is trendy…. Tagum City Councilor and vice mayoral aspirant Boyet Gementiza is having  jaded eye these days. Maybe  Councilor Mylene Baura is still on her topnotch ratings. But be wary that people who are already on the top have nowhere to go but go down…. Heard that Comval Boardmember Kristine Mae Caballero was penalized, politically. After his father, ex Gov. Joecab filed his CoC for boardmember for next year’s polls, her legislative staffers were not reappointed by outgoing Vice Gov. Ramil Gentugaya  for “loss of confidence”.  (For comments, email: