Central Negros welcomes President Ferdinand Marcos Jr.‘s official approval of the NEPC franchise. The Negros Electric and Power Corporation (NEPC), as the new distribution utility (DU), will now manage and operate the electricity distribution system in Central Negros. This significant move aims to guarantee a reliable electricity supply across the franchise area.
Legislation for Negros Electric and Power Corporation (NEPC) Franchise
The President signed Republic Act Number 12011 on July 26, 2024. That is just one day before it would have lapsed into law. This legislation will come into effect fifteen days after publication in the Official Gazette or a newspaper of general circulation.
Related: Negros Power Sets Up Temporary Office in Bacolod City
Origin and Approval Process of the Bill
The bill originated in the House of Representatives and was introduced by Negrense Representatives Stephen Paduano, Jose Francisco Benitez, Juliet Marie Ferrer, and Greg Gasataya. It was approved by the House on February 21, 2024. The Senate made amendments on May 20, 2024. Then it was further concurred by the House on May 22, 2024, before being forwarded to the Office of the President.
The Joint Venture of NEPC
NEPC, also known as Negros Power, is a joint venture company between Primelectric Holdings Inc. (PHI) and Central Negros Electric Cooperative (CENECO). This partnership was established to enhance power distribution and customer service. NEPC will be serving over 220 thousand active accounts in the cities of Bacolod, Bago, Talisay, Silay, and municipalities of Murcia, and Don Salvador Benedicto.
Acquisition and Financial Details
Within the agreement, PHI will acquire all power distribution assets of CENECO. With the assets valued at over two billion pesos, PHI paid CENECO 70% in cash. Then the remaining 30% will be CENECO’s share in NEPC.
National Electrification Administration (NEA) Endorsement
The National Electrification Administration (NEA) endorsed CENECO’s decision. NEA also instructed CENECO to prioritize loan repayments. Additionally, they emphasized the importance of paying employee retirement and separation benefits as outlined in their Collective Bargaining Agreements. Negros Power has confirmed the employment of over 200 CENECO employees.
Joint Maintenance and Operations
Negros Power and MORE Power have augmented CENECO and jointly conducted preventive maintenance activities. They have also helped CENECO with their response to trouble calls from consumers. Additionally, Negros Power prepared their offices, materials, and equipment needed for their upcoming operation this August. This preparation is to ensure a smooth transition.
Commitment to Consumers
Negros Power President and CEO Roel Castro expressed gratitude to the President, legislators, consumers, and local leaders in Central Negros for their support. He emphasized the company’s dedication to improving electric service. He also highlighted NEPC’s commitment to fulfilling promises to 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,” Castro said.
Initial Capital and Modernization Plans
Negros Power has also allocated an initial capital of Two Billion pesos 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 added.
Application for Official Operations
The final step for Negros Power is to apply for a Certificate of Public Convenience and Necessity (CPCN) from the Energy Regulatory Commission (ERC). Then they commence official operations as the new DU for Central Negros.
President Ferdinand Marcos Jr.’s approval of the franchise for Negros Power is a major step forward for Bacolod City and Central Negros Occidental. It ensures a reliable and uninterrupted electricity supply. Primelectric Holdings Inc. and Central Negros Electric Cooperative are working together, investing significantly to modernize the region’s electric infrastructure. With ongoing support from the government and the community, Negros Power is ready to improve electric service and infrastructure in the area. This development benefits consumers and contributes to the region’s overall progress and stability.
