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Ceneco, Primelectric/NEPC sign JVA

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• GILBERT P. BAYORAN

Abang Lingkod Rep. Stephen Joseph Paduano, Vice Gov. Jeffrey Ferrer, and barangay captains of Bacolod City witnessed the signing of JVA between Ceneco, Primelectric Holdings Inc./Negros Electric and Power Corporation, with signatories, Ceneco president Jojit Yap and acting manager Atty. Arnel Lapore, and Roel Castro, representing MORE Power.* GPB photo

The Central Negros Electric Cooperative (Ceneco), Primelectric Holdings Inc., and Negros Electric and Power Corporation (NEPC) have signed a Joint Venture Agreement on Saturday in Bacolod City, aimed at improving the delivery of electric services to its member-consumers by rehabilitating its facilities, among others.

The signing of the JVA between Ceneco, through its president Jojit Yap and acting general manager, Arnel Lapore, and Primelectric, represented by its president and CEO, Roel Castro, on June 3, was made three weeks before the start of referendum, where member-consumers will have the final say on whether to approve it or not.

Ceneco acting general manager, Atty. Arnel Lapore, said “we are very happy that the signing of JVA pushes through,” 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 supposed to be an income of Ceneco,” Lapore further said.

My obligation is not only to Ceneco personnel, but primarily to member-consumers, who should get the adequate services they deserve, he stressed.

Top provincial government officials led by Gov. Eugenio Jose Lacson, Vice Gov. Jeffrey Ferrer, 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 consumer 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 its consumer-members, declared Primelectric president and CEO Roel Castro, who witnessed the JVA signing in the presence of Bacolod City barangay captains, Vice Gov. Ferrer, and Rep. Paduano.

As stipulated in the proposed JVA, MORE Power, sister company of Primelectric and NEPC, will pay 100 percent on worth of Ceneco distribution assets, of which 70 percent is through cash, and the remaining 30 percent through shares of distribution facility, under the new company, if it is able to get a franchise from Congress.

Through this, Ceneco may 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 for the patronage funds for its member-consumers.

MORE Power will invest an additional P2 billion CapEx (Capital Expenditures) to immediately start the modernization, rehabilitation, and upgrading its electric distribution 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, reduction of system losses, and unscheduled brownouts.

Qualified Ceneco employees will be given priority in the job placements under the new JVA, and it will continue the Barangay Electrification Program, MORE Power further said.

Ceneco officials admitted losing P20 million a month due to system loss, with debts amounting to P800 million.

In the past several years, Ceneco had been bombarded with complaints by member-consumers on unannounced power interruptions, poor customer service, and high power rates.

The Primelectric / NEPC / MORE Power of business tycoon Enrique Razon is investing about P4 billion in the proposed JVA with Ceneco.

Ceneco has 210,000 member-consumers in cities of Silay, Talisay and Bago, Murcia and Salvador Benedicto, as well Bacolod City, where 70 percent of its clients are located.

The referendum for the JVA approval is slated on June 24 and 25, as well as July 1 and 2 this year.

It needs concurrence of 50 percent plus one of member-consumers for the JVA to be approved.

Paduano recalled that in 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, as he announced that he will even sponsor the approval of its franchise for 25 years in Congress.

On the other hand, Vice Gov. Ferrer said his office at the Capitol is open to any of the JVA oppositors.

I dare them to convince, Ferrer said, stressing also “to let the consumers decide on the JVA.”

If the JVA could get the approval of 50 percent plus one during the referendum, he replied “it may even reach more than the required numbers,” as the vice governor further stressed that it is advantageous to Ceneco member-consumers.*

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