Marcos signs Negros Electric franchise as power distributor
By Manila Standard Business – July 30, 2024, 6:40 pm
President Ferdinand Marcos Jr. approved the franchise for Negros Electric and Power Corporation (NEPC) to manage and operate the electricity distribution system in Central Negros, guaranteeing continuous and uninterrupted electricity supply across the franchise area.
The President signed Republic Act Number 12011 on July 26, 2024, just a day before it would have lapsed into law. The legislation will come into effect 15 days after publication in the Official Gazette or a newspaper of general circulation.
The bill originated in the House of Representatives and was introduced by Representatives Stephen Paduano, Jose Francisco Benitez, Juliet Marie Ferrer and Greg Gasataya.
It was approved by the House on February 21, 2024, amended by the Senate on May 20, 2024, and further concurred by the House on May 22, 2024, before being forwarded to the Office of the President.
NEPC, also known as Negros Power, is a joint venture company between Primelectric Holdings Inc. (PHI) and Central Negros Electric Cooperative (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.
PHI will acquire all power distribution assets of CENECO valued at over P2 billion, with 70 percent in cash and the remaining 30 percent as CENECO’s share in NEPC.
The National Electrification Administration (NEA) endorsed CENECO’s decision while instructing priority on loan repayments, and employee retirement and separation benefits payments outlined in their Collective Bargaining Agreements.
Negros Power confirmed the employment of over 200 CENECO employees. Negros Power and MORE Power augmented CENECO and jointly conducted preventive maintenance activities, and responded to trouble calls from consumers.
“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,” Negros Power president and chief executive Roel Castro said.
Negros Power allocated an initial capital of P2 billion for a five-year plan to rehabilitate and modernize the electric infrastructure, aiming to establish a robust distribution system.
Castro urged ongoing support and collaboration for the planned five-year rehabilitation journey to improve the system and reduce incidents of unscheduled power outages.
“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 said.
Negros Power will then apply for a certificate of public convenience and necessity (CPCN) from the Energy Regulatory Commission (ERC) to start official operations.
