NEA wants Primelectric deal to aid consumers
The JVA will help achieve the total electrification target in the franchise area by 2028.
Daily TribuneThe JVA will help achieve the total electrification target in the franchise area by 2028.
The National Electrification Administration has asked Primelectric Holdings Inc., a unit of MORE Electric and Power Corp., to ensure that its joint venture agreement with Central Negros Electric Cooperative Inc. will uphold consumers' interest.
"I hope we can address the concerns of the opposition. We must also consider them. Regarding the participation of the Member-Consumer-Owners, it has been concluded during the plebiscite so we will put this into motion with all the required legal objectivity," NEA Administrator Antonio Almeda said on Monday.
Last week, Almeda met with Primelectric and CENECO officials to address the opposition concerns to improve the JVA of the involved parties.
Primelectric and CENECO presented their joint venture to the NEA board to discuss service improvements for consumers.
Rehabilitation and modernization
"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 during the hearing.
For his part, CENECO acting general manager Atty. Arnel Lapore also supported the critical role the JVA plays in the area, adding that it "strongly" supports the NEA's objective to achieve efficient service for all consumers.
"I'm one with NEA in facilitating the service for the benefit of our consumers. That's why I strongly support and cooperate through this JVA to ensure we deliver quality operations internally and externally. Rest assured that we duly consider all the suggestions raised by Admin Almeda during the hearing," Lapore said.
Investments for systems modernization
Primelectric has already conveyed that it is ready to pour in investments to modernize the system of CENECO.
Castro highlighted that the target P2.1 billion initial investment in the capex of its operations will bankroll cutting-edge and top-of-the-line systems for a better consumer experience.
Castro also emphasized that the JVA will help achieve the 100 percent total electrification target in the franchise area by 2028 "in alignment" with the present administration's agenda of achieving sustainable and inclusive economic growth.
Rehabilitate the system
"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. That's why we have to put (the investment) in P2.1 billion to start rehabilitating and improving the system," he said.
Primelectric and CENECO signed the JVA last 3 June purposely to improve the electricity services in Central Negros.
The proposal received support from local leaders, the business sector, and consumer groups.
