The Central Negros Electric Cooperative and Primelectric Holdings Inc. joint venture agreement (JVA) is a “white knight” that would save power consumers from a looming disaster, Bacolod Mayor Alfredo Abelardo Benitez said on Monday, June 19.
Benitez, in a two-page statement outlining the reasons for his support for the JVA, said having sustainable and efficient power supply is also highly crucial to Bacolod’s aspiration to become a “super city”.
“It is therefore imperative that our power distribution system in the City should be developed, upgraded and systematically advanced, or else we will be left behind,” he said.
The mayor said he hopes the people of Bacolod will understand and support his stand.
His full support for the joint venture is extended with the assurance that “I will remain vigilant in the implementation of the JVA to ensure that its objectives will ultimately be realized”, Benitez said.
Benitez said he will not shy away from making a stand on any issue, especially on those that have a tremendous impact on the development of the city.
Even before he was elected mayor, Benitez said he had repeatedly received complaints about CENECO’s recurring and unannounced brownouts, high electricity rate, and poor consumer services.
It was revealed to him that CENECO has been operating at a loss for three consecutive years that as of December 31 last year had reached a whopping P674,30,630, Benitez said.
This year’s numbers are also not encouraging because as of the end of April 2023, the losses of CENECO had reached P47 million, he added.
Benitez said the JVA has met his three conditions for supporting it, which are to lower the electricity rates, assure 24/7 power supply, and convert to renewable power.
Roel Castro, president and CEO of MORE Electric and Power Corporation that is the mother company of Primelectric, in a presentation of the JVA to the mayor last week assured him that his three concerns would be addressed with the creation of the joint venture company – Negros Electric and Power Corporation (NEPC).
More Power has substantially reduced the power rate in Panay Island by at least 30 percent, Castro informed Benitez.
CENECO at present is charging an 8.25 percent Distribution System Loss (DSL) cap level to its consumers, Benitez said. With the JVA formalized, NEPC can only charge up to 5.5 percent DSL cap level, which is upfront 3.25 percent less on the system loss of the power rates, he said.
Benitez also pointed out that the power distribution sector is the most regulated sector in the country so there can be no arbitrary rate increase by NEPC.
“In order for us to have a 24/7 Power Supply, infrastructure, upgrading and development are needed. Primelectric committed to infuse P2 billion for its five year development plan. This is something that is concrete and makes sense,“ Benitez added.
The mayor also said the rights of CENECO’s workers will not be neglected as due preference is being given to them in the hiring of employees under the JVA.*
