• GILBERT P. BAYORAN
A day before it would have lapsed into law, President Ferdinand Marcos Jr. signed RA 12011 on July 26, granting Negros Electric and Power Corporation (NEPC) a franchise to manage and operate an electricity distribution system in central Negros, within a period of 25 years.
NEPC, also known as Negros Power, is a joint venture company between Primelectric Holdings Inc. (PHI) and Central Negros Electric Cooperative (CENECO), established to enhance power distribution and customer service for more than 220,000 active accounts in cities of Bacolod, Bago, Talisay, Silay, and municipalities of Murcia, and Don Salvador Benedicto.
Within the agreement, PHI will acquire all power distribution assets of CENECO valued at more than P2 billion, with 70 percent in cash, and the remaining 30 percent, as CENECO’s share in NEPC.
Expressing gratitude to the President, legislators, consumers, and local leaders in central Negros for their support, Negros Power president and chief executive officer Roel Castro emphasized the company’s dedication to improving electric service and fulfilling promises to consumers.
“We are grateful that our leaders and everyone are supporting this initiative to improve electric service for consumers. We now have the law, it’s time to walk the talk, and we are ready to serve and fulfill our promises to the consumers of Central Negros,” Castro said.
Negros Power has allocated an initial capital outlay of P2 billion, for a five-year plan to rehabilitate and modernize the electric infrastructure, aiming to establish a robust distribution system.
The legislation will come into effect 15 days after publication in the Official Gazette or a newspaper of general circulation, according to a statement issued by Negros Power.
The National Electrification Administration (NEA) endorsed CENECO’s decision while instructing priority on loan repayments, and employee retirement, and separation benefits payments outlined in their Collective Bargaining Agreements.
Negros Power has confirmed the employment of more than 200 CENECO employees.
Castro earlier announced that Negros Power set to start operating by August 1.
Prior to the grant of its franchise, Negros Power and MORE Power have augmented CENECO in the conduct of joint preventive maintenance activities, and responded to trouble calls from consumers.
Castro urged ongoing support and collaboration for the planned five-year rehabilitation journey to improve the system and reduce incidents of unscheduled power outages.
“We seek your continued support and cooperation as we commence the five-year journey of continuous rehabilitation to enhance the system and minimize instances of unscheduled power interruptions,” he said.
Negros Power is also slated to apply for a Certificate of Public Convenience and Necessity (CPCN) from the Energy Regulatory Commission (ERC) to officially commence operations.
The bill, which seeks to grant franchise for Negros Power to operate a distribution utility in central Negros, originated in the House of Representatives, introduced by Negrense solons, including Reps. Stephen Paduano, Jose Francisco Benitez, Juliet Marie Ferrer, and Greg Gasataya.
It was approved by the House on February 21 this year, which was amended by the Senate on May 20, and further concurred by the Lower House on May 22, before it was forwarded to the Office of the President.*
