Bacolod City – The Primelectric Holdings, Inc. assured Bacolod Mayor Alfredo Benitez of its commitment to invest P2 billion in the expansion and modernization of Central Negros Electric Cooperative (CENECO), should the Joint Venture Agreement with the distribution facility be approved by its member consumers.
In a letter to Benitez, Primelectric and Negros Electric and Power Corporation (NEPC) president Roel Castro made the clarification, after the P2 billion commitment was not mentioned in the JVA.
Castro explained that it was not mentioned in the JVA because the investment requirement “maybe more than that.”
“Our initial analysis of the situation in the (CENECO) franchise area led us to prepare an investment of P2 billion over a period of five years from our takeover of the distribution utility,” he stressed.
Castro further explained that providing stable power is an obligation of every distribution utility, under EPIRA (Electric Power Industry Reform Act) of 2001, and under their respective franchises, which he also said was not mentioned in the JVA “because it is a legal and regulatory requirement imposed on NEPC (not a mere contractual commitment).”
We are firmly committed to provide stable power in the franchise area within two years from our takeover of the operations, in compliance with our obligations as a distribution utility under EPIRA, and our franchise, if approved by Congress, he said.
Castro admitted that Primelectric/NEPC will be charging Value Added Tax, as required by the Bureau of Internal Revenue, stressing also that CENECO is also required to pay VAT for its generation, transmission and distribution charges.
While there is no JVA to govern the MORE Power, its sister company in Iloilo, it follows its commitment under the franchise (RA11212) of “ensuring the continuous and uninterrupted supply of electricity in the franchise area,” he further said.
That will sum up how we take seriously our commitment under the franchise and under EPIRA, even without any contractual commitment of a JVA, stressed Castro, who is also MORE Power president. (Gilbert Bayoran via The Visayan Daily Star (TVDS), photo courtesy of TVDS)
