What Saying Yes To The Primelectric And CENECO Joint Venture Agreement Means

In these modern times, people cannot imagine life without electricity because it’s an essential part of their daily lives. Most, if not all, have become more and more dependent on electricity due to the inventions of numerous appliances, devices, and many other technological advancements that made it impossible for people to live without them.

Bacolod City, no matter how modern and metropolitan it is, has its fair share of frequent unscheduled power interruptions. The unreliable supply of power has not only angered a lot but has also left people, especially entrepreneurs, worried about their businesses. How can Bacolod’s economy thrive if this energy problem persists? This is the primary reason why the Primelectric and CENECO JVA (Joint Venture Agreement) is very important and should be approved. If this happens, the electricity service will certainly improve, and the cost will be reduced significantly.

Benefits of this JVA to CENECO

CENECO’s substations and almost 50% of its facilities have been operating for three decades and can no longer meet the growing demands of consumers. If this agreement happens, here are but a few of CENECO’s woes that’ll be addressed:

⯈ Because of internal borrowings and debts from banks, CENECO’s debt has ballooned to Php 600,000,000. The Energy Regulatory Commission (ERC) hasn’t approved the application for Capital Expenditures (CAPEX) since 2011.

⯈ There are frequent unscheduled brownouts because there’s no sufficient funding for the maintenance and purchase of modern facilities.

⯈ It may be hard for CENECO to get a new franchise (expiring in 2030) in Congress against interested Private Distribution Utilities.

⯈ It’s losing almost Php 20,000,000 per month because its monthly system loss is 11%, which is above the 8.25% allowable cap of ERC.

The Other Player: Primelectric/NEPC (Negros Power)

Primelectric / Negros Electric Power Corporation [NEPC] (Negros Power), owned by Mr. Enrique Razon, is the sister company of MORE Electric Power Corporation (MORE Power), a distribution utility in Iloilo City. The president of both companies is Mr. Roel Castro. Primelectric has a comprehensive record in modernizing Iloilo City’s Power Distribution System.

Here are some of MORE Power’s achievements:

⯈ They have reduced unscheduled power interruptions in Iloilo City because of system rehabilitations.

⯈ The system loss since its initial operations in Iloilo in 2020 has decreased to 5.5% (from 30%).

⯈ Increased the capacity of existing substations and built new ones. They also bought 2 mobile substations.

⯈ They have simplified the process of connecting to electricity and made a program for informal settlers to have their own electricity.

⯈ They have a 24/7 hotline to answer electricity problems and response teams prepositioned in the field.

⯈ They are very much active in community projects in barangays and other local government units.

Advantages of the CENECO and Primelectric/NEPC JVA and Why Consumers Should Vote YES to JVA

If, and when the JVA takes place, Primelectric/NEPC will give Php 1.7 billion as payment for 70% of the value of CENECO’s distribution assets. When this happens, CENECO will be able to pay its debts, return bill deposits to customers, and give separation and retirement pay to its employees. Other advantages include:

⯈ The Joint Venture Company will apply for a new franchise in Congress.

⯈ Qualified CENECO employees will be prioritized to work in the new Joint Venture Company.

⯈ An initial investment of Php 2 billion in CapEx Fund will be made for the modernization and rehabilitation of the distribution facilities.

⯈ The Joint Company will contract new power supplies through fair negotiations and bidding.

⯈ The price of electricity will decrease, as well as unscheduled brownouts.

⯈ The service will be far better. A 24/7 helpline will be in place to answer inquiries.

⯈ More businesses will enter Central Negros and the franchise area (Bacolod, Talisay, Bago, Silay, Murcia, and Don Salvador Benedicto) and existing ones will flourish.

⯈ More jobs for Negrenses and more government taxes/revenues.

⯈ CENECO will get 30% of dividends, and this will be given to its true member-consumer-owners.

⯈ The Barangay Electrification Program will continue.

⯈ The reduction of unauthorized connections will result in the decrease in system loss.

⯈ Due to fewer requirements, the installation of individual meters will be easier.

In Conclusion

A truly progressive province should be able to provide all the comforts and necessities of life for its people. Let’s give our children the chance to have not only a brighter now, but also a brighter tomorrow.