Sen. Grace Poe push for Senate approval of NEPC franchise
Senator Grace Poe sponsored the bill seeking the grant of a legislative franchise to NEPC during the Senate plenary session on Monday. She also sponsored three local bills (House Bill Nos. 6295, 9154 and 9805) seeking the grant of legislative franchises to power distribution utilities in the provinces of Negros Occidental (Negros Electric and Power Corporation), Leyte (Leyte II Electric Cooperative), and Romblon (Romblon Electric Cooperative) during the same session.
Importance of the Proposed Franchises
Sen. Poe, the Senate Committee on Public Services chairperson, pushed for approval of the bills that would grant franchises to NEPC, LEYECO II, and ROMELCO. She emphasized the critical need for these measures, stating,
“There’s no more fitting time than today to present three measures that will ensure our power consumers’ continued access to affordable, reliable, and sustainable energy, lalong-lalo na sa gitna ng malawakang at dumadalas na brownout at power interruptions iba’t ibang parte ng bansa.
As the heat index in the country remains dangerously high and is projected to continue rising at the peak of the summer season and amid El Niño, there is no more fitting time than today to present three measures that will ensure our power consumers’ continued access to affordable, reliable, and sustainable energy, especially in the midst of widespread and frequent brownouts and power interruptions in various parts of the country.”
Details of the Franchise for NEPC
House Bill No. 9805 is a measure that has emerged from the public’s demand for improved power service in Negros Occidental. Senator Poe elaborated on its purpose, stating,
“It seeks to grant a franchise to NEPC, a partnership formed through the joint venture agreement (JVA) between Primelectric, the same parent company of Iloilo’s MORE Power, and CENECO, the existing power distribution utility in the cities of Bacolod, Bago, and Silay and the Municipalities of Murcia and Talisay in Negros Occidental.”
Current Challenges and Solutions
CENECO, the existing power distribution utility in the mentioned areas, has faced financial challenges hindering its ability to upgrade its facilities. Senator Poe shed light on this issue by stating,
“NEA has reported that CENECO is operating at a negative profit margin and has failed to pay its debts timely. In 2023, it was classified as a Yellow-1 electric cooperative for its poor performance on collection efficiency, systems loss, working capital requirements, and financial operations.”
She further added,
“Amid these difficulties, NEPC has expressed its readiness and willingness to invest capital to modernize the distribution system and address the operational challenges. This investment would benefit not only the franchise area but also the power sector and the Philippine economy in general.”
Sen. Grace Poe’s advocacy for the approval of NEPC’s franchise represents a significant stride towards mitigating brownouts and enhancing energy accessibility across the Philippines. Policymakers can lay the groundwork for a more resilient and prosperous future by prioritizing sustainable energy solutions and fostering strategic partnerships. By granting these franchises, the government aims to ensure continuous access to affordable and reliable energy for Filipino consumers, especially in areas prone to brownouts and power interruptions.
FAQs:
1. What is the purpose of granting a franchise to NEPC?
- The franchise aims to improve power service in Negros Occidental and address the financial challenges faced by the existing power distribution utility, CENECO.
2. How does Senator Poe plan to address the operational challenges of CENECO?
- Senator Poe proposes granting NEPC the franchise, which would allow it to invest capital in modernizing the distribution system and addressing operational challenges.
3. Why is there a sense of urgency in approving these franchise bills?
- With the rising heat index and the threat of El Niño, there is an immediate need to ensure continuous access to affordable, reliable, and sustainable energy, especially in areas experiencing frequent brownouts.
4. How does NEPC plan to contribute to the power sector and the Philippine economy?
- NEPC expresses readiness to invest in modernizing the distribution system, which is expected to benefit not only the franchise area but also the power sector and the Philippine economy.
5. What are the potential benefits of granting franchises to NEPC, Leyte II Electric Cooperative, and Romblon Electric Cooperative?
- Granting franchises to these entities aims to improve power service, ensure affordability and reliability, and address the challenges faced by existing distribution utilities in the respective regions.