- GILBERT BAYORAN
The Central Negros Electric Cooperative, Primelectric Holdings Inc., and the Negros Electric and Power Corporation (NEPC) have signed the Joint Venture Agreement June 3 in Bacolod City, aimed at improving the delivery of electric services to member-consumers, by rehabilitating Ceneco facilities, among others.
The signing of the JVA between and among Ceneco Board president Jojit Yap and acting general manager Atty. Arnel Lapore, and Primelectric president and chief executive officer, Roel Castro, was held three weeks before the start of the referendum, when member-consumers will vote to either approve or junk the agreement.
Lapore said “we are very happy that the signing of the JVA pushes through,” between Ceneco and Primelectric, as he also acknowledged the support and endorsement of top provincial officials of Negros Occidental.
“It’s a big opportunity to give a chance for Ceneco to upgrade its facilities, address the frequent power outages due to its old structures, and address the system loss, which is P15 million to P20 million per month, which is supposed to be an income for Ceneco,” he added.
“My obligation is not only for Ceneco personnel, but primarily to member-consumers, who should get the adequate services they deserved,” Lapore stressed.
Top provincial government officials, led by Gov. Eugenio Jose Lacson, Vice Gov. Jeffrey Ferrer, and Abang Lingkod party-list Rep. Stephen Joseph Paduano have endorsed the JVA, aside from local chief executives in the Ceneco franchise area, barangay leaders and officials of Bacolod City, as well as labor and consumers’ groups.
“This is “very historic” not only for Ceneco, but also for us, because this JVA, more than anything else, is really to deliver better or superb services to consumer-members,” Castro said.
As stipulated in the JVA, MORE Power, the sister company of Primelectric and NEPC, will pay 100 percent on worth of Ceneco distribution assets, 70 percent through cash, and the remaining 30 percent through shares in the distribution facility, under the new company once its franchise is approved by Congress.
Through this, Ceneco may be able to pay its debts, as well as the separation and retirement of some of its employees, while the remaining amount will be returned to Ceneco as patronage funds for its member-consumers.
MORE Power will invest an additional P2 billion in CapEx or capital expenditures to immediately start the modernization, rehabilitation, and upgrading of Ceneco’s facilities.
The electric rates will be reasonable, with new power suppliers though the Competitive Selection Process, to ensure low generation charge, with priority given to renewable energy.
MORE Power assures consumer-friendly services, as well as reduction of system losses and unscheduled brownouts.
Qualified Ceneco employees will be given priority in the job placements under the new JVA, as well as the continued Barangay Electrification Program, MORE Power further said.
Ceneco officials admitted losing P20 million a month, due to system loss, with a debt amounting to P800 million.
In the past several years, Ceneco has been always bombarded with complaints by member-consumers for unannounced power interruptions, poor customer service, and high electric rates.
The Primelectric/NEPC/MORE Power of business tycoon Enrique Razon is investing about P4 billion under the JVA with Ceneco.
Ceneco has 210,000 member-consumers in Silay, Talisay, Bago, Murcia, Don Salvador Benedicto, and Bacolod City, where 70 percent of its clients are located.
The JVA referendum is slated on June 24 and 25, as well as July 1 and 2 this year.
The joint venture deal needs the concurrence of 50 percent plus one of member-consumers.
Paduano recalled that in the 17th Congress, he opposed the granting of franchise for MORE Power, as he defended local businesses in Iloilo. Almost four years after, the solon said that MORE Power has proven its worth in Iloilo, and announced that he will now sponsor the approval of its franchise for 25 years, in Congress.
Ferrer, meanwhile, said his office at the Capitol is open to any JVA oppositor.
“I dare them to convince me,” Ferrer said and stressed that consumers should be allowed to “decide on the JVA.”
Asked if the JVA could get the approval of 50 percent plus one during the referendum, Ferrer said: “It may even reach more than the required numbers”, as he stressed that the joint venture is advantageous to Ceneco member-consumers./GB
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Primelectric president and CEO Roel Castro (2nd from left) signs the JVA, with Ceneco president Jojit Yap and acting general manager, Atty. Arnel Lapore, in the presence of Abang Lingkod Rep. Stephen Joseph Paduano, Vice Gov. Jeffrey Ferrer, and several barangay captains of Bacolod City June 3. | GB photo
