President Ferdinand Marcos Jr. has approved the franchise for Negros Electric and Power Corporation (NEPC) to manage and operate the electricity distribution system in Central Negros.
The President signed Republic Act Number 12011 on July 26, a day before it would have lapsed into law, to ensure “continuous and uninterrupted electricity supply across the franchise area”.
The law will take to effect 15 days after publication in the Official Gazette or a newspaper of general circulation, allowing NEPC to take over the operations of Central Negros Electric Cooperative (CENECO) in August.
NEPC has allocated an initial capital of P2 billion for a five-year plan to rehabilitate and modernize the electric infrastructure in Central Negros, its President and CEO Roel Castro said.
“We are now holding NEPC to its promises. We will monitor them,” Bacolod Mayor Alfredo Abelardo Benitez said.
NEPC, also known as Negros Power, is a joint venture company between Primelectric Holdings Inc. (PHI) and CENECO, established to enhance power distribution and customer service for over 220,000 active accounts in the cities of Bacolod, Bago, Talisay, Silay, and municipalities of Murcia, and Don Salvador Benedicto in Negros Occidental.
Under the joint venture PHI will acquire all power distribution assets of CENECO valued at over P2 billion, with 70 percent in cash, while the remaining 30 percent will be CENECO’s share in NEPC.
NEPC is employing more than 200 CENECO employees.
The National Electrification Administration, which endorsed CENECO’s decision, instructed it to prioritize loan repayments, and employee retirement and separation benefits payments outlined in their Collective Bargaining Agreements.
MORE Power and NEPC have augmented CENECO and jointly conducted preventive maintenance activities, and responded to trouble calls from consumers even before the takeover, Castro said.
NEPC has already prepared its offices, materials, and equipment needed in anticipation of their upcoming operation this August to ensure a smooth transition, he said.
NEPC is applying for a Certificate of Public Convenience and Necessity from the Energy Regulatory Commission (ERC) to commence official operations.
Castro, who thanked the President, legislators, consumers, and local leaders in Central Negros for their support, stressed the company’s dedication to improving electric service and fulfilling promises to consumers.
The bill granting the 25-year franchise was introduced by representatives Jose Francisco Benitez (Neg. Occ., 3rd District), Juliet Marie Ferrer (Neg. Occ., 4th District), Greg Gasataya (Bacolod City) and Stephen Paduano (Abang Lingkod Partylist) in the House of Representatives.
It was approved by the House on February 21, amended by the Senate on May 20, and further concurred by the House on May 22, before being forwarded to the Office of the President.
“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.
“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 added.*