NEGROS residents may soon experience a transformative change in their electric service, as the House Committee on Legislative Franchises has given its preliminary approval to House Bill 9310, which aims to grant the Negros Electric and Power Corporation (NEPC) a franchise.
In a statement the NPEC said the franchise will enable them to establish and maintain an electric power distribution system in key cities such as Bacolod, Silay, Talisay, and Bago, as well as in the municipalities of Murcia and Don Salvador Benedicto—all in the province of Negros Occidental—and ensure a continuous and uninterrupted supply of electricity in the franchise area.
During the hearing chaired by Parañaque Rep. Gus Tambunting, progressive steps were taken towards granting the franchise. PBA Partylist Rep Margarita Nograles moved for the approval in principle of the bill, subject to style and subject to the submission of documents that are being asked from the Energy Regulatory Commission, National Electrification Administration, Securities and Exchange Commission, Central Negros Electric Cooperative (CENECO), and Primelectric Holdings Inc.
In an interview with reporters, Primelectric Holdings Inc. President Roel Castro said that they will submit and comply with what is being directed to them within the week.
Castro emphasized the potential advantages for residents if the franchise is granted. He highlighted the issues currently faced by CENECO consumers and the urgent need for improved electric services in the region.
“The electric service is not really that good; they have frequent brownouts, and when I say 'frequent', it's normal to say that it's daily. It takes them months to comply when you apply for a new connection. There’s a lot of complaints, and over and above that, their system loss is already beyond the cap. And when the systems loss is above the cap, it means that it is being passed on to the bottomline consumers, and CENECO is already losing P20 to P30 million a month,” Castro explained.
CENECO has been in existence for 48 years and, under their current franchise, still has 7 years to go, which is up to 2030. However, to improve its services, it has entered into a Joint Venture Agreement (JVA) with Primelectric Holdings Inc., a subsidiary of More Electric and Power Corporation, a distribution utility that operates in Iloilo City.
NEPC is the company that was formed through the JVA and is now seeking approval of a franchise from Congress.
Under the new company, 30% ownership will be retained by CENECO, while Primelectric will purchase 70% of its assets.
Castro expressed confidence in NEPC’s ability to bring significant enhancements to Bacolod and Central Negros, drawing from their successful experience in Iloilo.
"With all confidence, I am saying that because we were able to do that in Iloilo. In the last three years, we were able to bring down systems loss to only 5%. We also curtailed the duration of interruptions by over 90%. In terms of rates, our rate is the lowest within the region. The number of customers increased from 62,000 when we started, and now it's 93,000 over three years. I would say that the approach to rehabilitate and make a turnaround is something we have done in Iloilo, and now we aim to do the same in Negros," Castro said.
According to him, the biggest contributor to the improvement in Iloilo is the funds poured into Capital Expenditures.
"The investment, combined with the approach, is something that we are confident we can replicate in BaNegrosanf in Central Negros if given a chance by Congress to have a franchise," Castro lamented.
Moreover, Castro expressed confidence in the approval of the franchise by the Congress as the authors of the bill are the representatives themselves in Negros, namely Negrense Representatives Joseph Stephen Paduano, Francisco Benitez, and Juliet Marie de Leon Ferrer.
“They have witnessed the stark contrast between CENECO's services and More Power's performance in Iloilo. Notably, Congressman Paduano was initially against granting More Power a franchise when we applied five years ago but has since changed his position after witnessing the remarkable improvements in Iloilo,” Castro said.
Castro highlighted that they have received support from local officials, including mayors and council members. This support will contribute to the overall improvement of services.
Furthermore, Castro assured that they are committed to significantly improving the response time for emergencies.
Currently, CENECO takes 90 minutes to 2 hours to respond, while More Power in Iloilo achieves a remarkable response time of just 15 minutes. Castro confidently stated that they will strive to replicate this swift response time in Negros as well.
