Negros Electric and Power Corp. (NEPC) or Negros Power, in partnership with Central Negros Electric Cooperative (Ceneco), is poised to commence operations by the third quarter of this year. This development follows the Senate’s approval of NEPC’s franchise on the third and final reading, marking a significant milestone in the region’s energy sector.
Senate Approval and Legislative Process
The Senate’s approval of House Bill (HB) 9805 is a critical step in enabling NEPC to establish, operate, and maintain a distribution system for electric power in Central Negros. This bill, supported by 22 senators, grants NEPC the authority to supply electricity to six localities through a joint venture agreement (JVA) with Ceneco. The targeted investment for this venture is approximately PHP 2.1 billion.
Coverage Area and Target Investment
The NEPC’s franchise covers the cities of Bacolod, Silay, Talisay, and Bago, as well as the towns of Murcia and Don Salvador Benedicto. This strategic investment aims to enhance the distribution infrastructure, ensuring a more reliable and efficient power supply to these areas.
Steps Toward Operationalization
Presidential Approval and Legal Formalities
Following Senate approval, HB 9805 will be forwarded to the Office of the President for signing into law. If not signed, it will automatically become law after 30 days. Subsequently, it will be officially enacted in major newspapers within 15 days.
Energy Regulatory Commission (ERC) Certification
NEPC’s next crucial step is obtaining a public convenience and necessity certificate from the Energy Regulatory Commission (ERC). NEPC President and CEO Roel Castro emphasized that this certification is vital for commencing operations within the franchise area. The timeline for this certification process remains uncertain.
Operational Preparations and Workforce Integration
Deployment of Response Teams and Temporary Offices
Even before the official operations start, NEPC has proactively prepared for Day 1. They have deployed five response teams in Bacolod City and established a temporary office with around 250 workspaces. This setup ensures a smooth transition and readiness to address immediate operational needs.
Employee Transition and Training
Of Ceneco’s 400-plus employees, approximately 220 to 230 have shown interest in joining NEPC. These employees have been preliminarily assigned roles within NEPC, with the formal employment process set to commence soon. Coordination with Ceneco is ongoing to facilitate this transition.
Enhancing Service Quality and Infrastructure
Commitment to Better Service
NEPC aims to provide superior service to consumers by implementing advanced and top-of-the-line systems for power supply distribution. Roel Castro highlighted that the capital required for this initiative, over PHP2 billion, has already been allocated for the joint venture and capital expenditures program.
Modernization and Rehabilitation Efforts
In a previous statement, Castro mentioned that NEPC’s joint venture with Ceneco focuses on modernizing and rehabilitating the existing distribution system. This upgrade is crucial for delivering high-quality service to the consumers and ensuring a reliable power supply.
Clarification on Recent Power Rate Increases
CENECO’s Power Rate Increase Unrelated to JVA
Recently, Central Negros Electric Cooperative (Ceneco) imposed a power rate increase on electricity bills, which led to some concerns among consumers. However, NEPC President Roel Castro and Ceneco General Manager Arnel Lapore clarified that this increase is unrelated to the joint venture agreement between NEPC and Ceneco.
Factors Contributing to Higher Rates
The power rate increase is attributed to several factors, including the extreme heat from the El Niño phenomenon, increased power demand, and outages at 13 power plants. For May, the residential rate has risen to over PHP15 per kilowatt-hour (kWh) compared to last month’s PHP11/kWh. Similarly, Negros Occidental Electric Cooperative (Noceco) announced a rate hike from PHP14.6309/kWh in April to PHP17.9609/kWh in May.
The commencement of NEPC’s operations in Central Negros is a promising development for the region’s energy sector. With a significant investment in modernizing and enhancing the distribution infrastructure, NEPC aims to provide its consumers with a reliable and efficient power supply. While recent power rate increases have caused some concern, it is clear that these are due to broader factors affecting the energy market rather than the joint venture itself.
FAQs
- 1. What is the primary goal of NEPC’s joint venture with Ceneco?
The primary goal is to modernize and rehabilitate the existing distribution system to provide a high-quality and reliable power supply to consumers in Central Negros.
- 2. Which areas will be covered by NEPC’s distribution system?
The distribution system will cover the cities of Bacolod, Silay, Talisay, and Bago, as well as the towns of Murcia and Don Salvador Benedicto.
- 3. Are recent power rate increases related to the NEPC-Ceneco joint venture?
No, the recent power rate increases are due to extreme heat from the El Niño phenomenon, increased power demand, and power plant outages, not the joint venture.
- 4. What steps has NEPC taken to prepare for its operations?
NEPC has deployed response teams, set up a temporary office with about 250 workspaces, and started integrating Ceneco employees into its workforce to ensure a smooth transition and readiness for operations.
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