Why Bacolod needs Primelectric-NEPC (Negros Power)?
CENECO-Bacolod needs Primelectric-NEPC (Negros Power) because the city has been experiencing frequent power outages and high power rates. Primelectric-NEPC has a proven track record of improving the reliability of power supply and reducing power rates in other areas where it operates. The company is also committed to providing excellent customer service.
- To improve the reliability of the power supply: Bacolod City has experienced frequent power outages in recent years. This has caused inconvenience and disruption to businesses and residents. Primelectric-NEPC has a proven track record of improving the reliability of power supply in other areas where it operates. For example, MORE Power, a subsidiary of Primelectric-NEPC, has reduced power outages by 80% in Iloilo City since it took over the distribution system in 2020.
- To lower power rates: Bacolod City has some of the highest power rates in the Philippines. This is due to the high fuel cost and the inefficiencies of the current distribution system. Primelectric-NEPC is expected to bring in new investments to help reduce Ceneco’s operating costs. This could lead to lower power rates for consumers.
- To improve customer service: Bacolod City’s current power distribution system needs to be better managed. This has led to long wait times for customer service, difficulty reporting outages, and a lack of transparency. Primelectric-NEPC has a strong focus on customer service. The company is committed to providing consumers a more convenient and responsive way to pay their bills, report outages, and get help with their electricity needs.
- To boost economic development: Bacolod City is a major economic hub in the Philippines. However, the high cost of Power has been a barrier to investment and economic growth. Primelectric-NEPC’s investment in Bacolod City could attract new businesses and create jobs.
Overall, Bacolod City needs Primelectric-NEPC to improve the reliability of the power supply, lower power rates, improve customer service, and boost economic development. The company has a proven track record of success in other areas and is committed to providing quality service to Bacolod City’s residents and businesses.
Here are the FACTS about the Joint Venture of PRIMELECTRIC and CENECO:
Who is Primeelectric/NEPC (Negros Power)?
- Primeelectric/NEPC (Negros Power) is the sister company of MORE Electric Power Corporation (MORE Power), which operates as a distribution utility in Iloilo City.
- Owned by Enrique Razon
- The President of MORE Power and Negros Power is the same person, Mr. Roel Castro.
- Managed by experts in the electricity industry and known for their concern for consumers.
- Has a track record in Iloilo City on how to modernize the Power Distribution System. It has spent over 2 billion pesos in just three years and allocated an additional 1 billion pesos for the next two years.
- Increased the capacity of substations, built new substations, and purchased two mobile substations.
- Since it started operating in Iloilo in 2020, the system loss has decreased from 30% to 5.5%.
- The number of “unscheduled power interruptions” has been reduced through system rehabilitations and other modern strategies.
- The response time has been accelerated when consumers have electricity problems through a 24/7 helpline that answers calls and chats. There are response teams already prepositioned in the field.
- The total average rates have been reduced by contracting with cheaper suppliers through the Competitive Selection Process (CSP) or bidding and 24/7 monitoring by the trading team to buy more affordable electricity from the Wholesale Electricity Stock Market (WESM).
- The process of connecting to electricity has been simplified and accelerated. It has established a program for informal settlers to have their electricity.
- Active in Corporate Social Responsibilities (CSR) and partnerships in community projects, local government units, and barangays.
Here are the current needs of CENECO:
- Almost 50% of the facilities, such as substations, are already 30 years old and cannot meet the electricity demand of consumers.
- There needs to be more funding for repairing and purchasing modern facilities, which is why frequent unscheduled brownouts exist.
- It has a debt of more than 600 million pesos from internal borrowings and banks.
- The Energy Regulatory Commission (ERC) has yet to approve the Capital Expenditures (CAPEX) application since 2011.
- The monthly system loss is 11%, above the 8.25% allowable cap of ERC, which means it loses almost 20 million pesos monthly.
- The franchise will expire in 2030, and getting a new franchise in Congress may be challenging against interested Private Distribution Utilities.
- If CENECO enters into a joint venture company with Primeelectric/NEPC (Negros Power):
- Primeelectric/NEPC (Negros Power) will provide 1.7 billion pesos in cash as payment for 70% of the value of CENECO’s distribution assets.
- As a result, CENECO can pay its debts, return bill deposits to consumers, and separation and retirement pay to its employees.
- The remaining money can be returned to our member-consumers as patronage refunds.
- The Joint Venture Company will apply to Congress for a new franchise for the next 25 years.
- Qualified CENECO employees will be given priority to work in the new Joint Venture Company.
- Primeelectric/NEPC (Negros Power) will immediately invest an initial 2 billion pesos in CapEx Fund to immediately start the modernization, rehabilitation, and upgrading of the distribution facilities.
- The Joint Company to be established will contract new power supplies through fair negotiations, and the Competitive Selection Process (CSP) or bidding, and the cheapest will win. Renewable energy will be prioritized.
- The service will become consumer-friendly, and someone will answer calls and respond immediately at any time.
- The system loss and electricity price will be felt to be decreasing.
- The incidence of unscheduled brownouts will decrease.
- When the dividends of Primeelectric/NEPC and CENECO are divided, 30% will go to CENECO. This means that CENECO will give dividends to its true member-consumer-owners.
- More businesses will enter Central Negros and create more jobs for Negrense and taxes for the government.
- The Barangay Electrification Program will continue.
FOR THE IMPROVEMENT OF OUR ELECTRICITY SERVICE AND THE REDUCTION OF ELECTRICITY PRICE.
VOTE YES TO JVA!
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