Northern Davao Electric Cooperative Inc, (Nordeco) has informed its Member-Consumer-Owners (MCOs) of the reason behind the increase in electricity bills during the month of August 2022.
Nordeco serves more than 100,000 MCOs within its twin franchises in Davao de Oro and parts of Davao del Norte.
In a statement, Nordeco pointed to increase in charges by Generation Companies supplying the power cooperative, due to higher cost of oil in the international market primarily triggered by the Russia-Ukraine war..
Adding to the increase in generation charges is the increased Value-Added Tax (VAT) imposed by government.
The negative impact of the Russia-Ukraine war on prices and supply of oil is a universal phenomenon that affected not only power coops like Nordeco but also power giants like the Davao City-based Aboitiz-owned Davao Light and Power C. (DLPC) which was also forced to hike its power rates.