NEA grants conditional consent to CENECO-NEPC joint venture

The National Electrification Administration has granted its conditional consent to the proposed Joint Venture Agreement between the Central Negros Electric Cooperative and Primelectric Holdings Inc./Negros Electric and Power Corporation (NEPC).

NEA, in a six-page memorandum on Nov 13, said that it conditionally grants its consent to push through the JVA between CENECO and Primelectric with nine conditions.

“Accordingly, given that majority of the member consumer owners of CENECO have given their consent to the JVA with Primelectric/NEPC, the NEA must now respect and uphold the will of the MCOs of CENECO”, the memorandum stated.

Among the conditions set by NEA are the settlement by CENECO of all its outstanding loans and obligations to the agency and other creditors who hold liens on its properties.

CENECO must submit proof of settlement, NEA also said.

NEA also asked CENECO to give separation pays, retirement benefits, and collective bargaining agreements to the employees who will be separated by virtue of the JVA.

CENECO should also have adequate funds for the bill and meter deposits of the member-consumers.

The agency also asked CENECO to submit nominated representatives for the NEPC board, a grant of legislative franchise, and submit a full accounting of its obligations and net cash after the implementation of JVA.

NEA’s memorandum said that if any of the conditions were not met, the JVA will be reconsidered.*

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