- GILBERT BAYORAN
The Primelectric Holdings Inc. assures Bacolod City Mayor Alfredo Benitez of its commitment to invest P2 billion for the expansion and modernization of the Central Negros Electric Cooperative (Ceneco), should the Joint Venture Agreement with the distribution facility is approved by its member-consumers.
In his letter to Benitez July 10, Primelectric and Negros Electric and Power Corporation (NEPC) president Roel Castro made the clarification after the P2 billion commitment was not mentioned in the JVA.
Castro explained that it was not mentioned in the JVA because the investment requirement might be more than P2 billion.
“Our initial analyses of the situation in the Ceneco franchise area led us to prepare an investment of P2 billion over a period of five years from our takeover of the distribution utility,” Castro said.
He added that providing stable power is an obligation of every distribution utility, under the EPIRA or Electric Power Industry Reform Act, and under their respective franchises, which he also said was not mentioned in the JVA due to legal and regulatory requirements imposed on NEPC.
“We are firmly committed to provide stable power in the franchise area within two years from our takeover of the operations, in compliance with our obligations as a distribution utility under the EPIRA, and our franchise, if approved by Congress,” Castro said.
He admitted that Primelectric/NEPC will be charging value-added tax, as required by the Bureau of Internal Revenue, stressing that Ceneco is also required to pay VAT for its generation, transmission, and distribution charges.
While there is no JVA to govern the MORE Power, its sister company in Iloilo, it followed through with its commitment under the franchise (RA11212) in ensuring the continuous and uninterrupted supply of electricity in the franchise area, Castro further said.
“That will sum up how we take seriously our commitment, even without any contractual commitment of a JVA,” he stressed./GB
