Primelectric to invest P2 billion in CENECO

MANILA, Philippines — Primelectric, a sister company of Enrique Razon-led MORE Power, is readying its investments to beef up services and achieve full electrification in the franchise area of Central Negros Electric Cooperative Inc. (CENECO) under their planned joint venture.

The National Electrification Administration (NEA) convened last week to start assessing the joint venture agreement of Primelectric and CENECO which is aimed at promoting quality service to consumers in the franchise area.

The joint venture will be called Negros Electric and Power Corp. (NEPC).

“This venture seeks to magnify the electric industry in Central Negros by not just streamlining the internal and external operations of concerned parties but also rehabilitating and modernizing the distribution system, which is deemed crucial in providing quality service to our consumers,” Primelectric president Roel Castro said.

Castro said NEPC is targeting to invest P2.1 billion in capital expenditures to put up “cutting-edge and top-of-the-line systems” for a better consumer experience.

“We need to rehabilitate the system because if you don’t put in the additional P2 billion investment or even bigger, you will be inheriting a distribution system that is just the same as now that is inefficient,” Castro said.

“That’s why we have to put the investment of P2.1 billion to start rehabilitating and improving the system,” he said.

On top of rehabilitating the distribution system, Castro said the investment would also aid in reducing system’s losses as well as improve reliability.

“The P2.1 billion will result in reduced system losses and much better reliability but will not lead to any immediate increase in the distribution system and metering rates for the consumers once NEPC operates,” he said.

Castro said NEPC is likewise committed to achieve the 100 percent total electrification target in the franchise area by 2028, in line with the present administration’s agenda of achieving sustainable and inclusive economic growth.

“On behalf of NEPC, we have our commitment to continue, and we will achieve the 100 percent target in alignment with the government’s direction,” Castro said.

“It will now be fully funded by NEPC, and thus, we are shifting the burden of electrification from the government to the private sector,” he said.

To efficiently execute these programs, Castro said the NEPC would work closely with the NEA, along with other agencies.

“We will ensure that Primelectric/NEPC will collaborate with NEA and CENECO because we have the same mission to bring light to the progression of the Filipino people and make their lives even more comfortable,” Castro said.