Negros Occidental Gov. Eugenio Jose Lacson and Vice Governor Jeffrey Ferrer are supporting the proposed joint venture between Central Negros Electric Cooperative and MORE Power.
MORE Power president and chief executive officer Roel Z. Castro explained the benefits of the joint venture to the provincial government officials at the Negros Residences in Bacolod City on Tuesday, May 9.
Lacson said he is for the joint venture because based on MORE Power’s experience in Iloilo they will know how to bring down the frequency of power interruptions and reduce systems loss that will redound to the advantage of the consumers.
“It is more advantageous to the consumers compared to the current services of CENECO” that is why he is supporting it, Ferrer also said.
Under joint venture CENECO will continue to exist, but they will form a new company called Ignite or Negros Electric Power Corp., Castro said.
The shareholdings of the new company will be 70 percent Ignite and 30 percent CENECO as partial consideration of the transfer of its distribution assets to the joint venture company, he said.
Ignite will pay CENECO for 70 percent of its distribution assets, Castro said.
The distribution assets of CENECO have been valued at P1.8 to 1.9 billion based on its last appraisal.
The joint venture company will commence operations as a distribution utility while CENECO will continue to remain as a corporate entity that will administer its 30 percent share, Castro said.
The target is to put the joint venture proposal up for a referendum in June or July, and if it is approved by the CENECO members they will then apply for a 25-year legislative franchise for the new company, he added.
Under the joint venture company they can assure stable, adequate and competitive-priced reliable power, and improved services, Castro said.*