Consumers should be protected from sudden electricity rate increases under the proposed SOCOTECO II-Ignite Power joint venture, with efficiency gains from the partnership eventually translating into lower power costs.

The General Santos City Chamber of Commerce and Industry said Friday it supports the proposed conditional joint venture agreement (CJVA) between South Cotabato II Electric Cooperative and Ignite Power and Energy Holdings Inc., but called for firm safeguards on rates, service reliability and consumer rights.

The chamber said the partnership could address SOCOTECO II’s financial losses, operational problems and aging infrastructure, which have contributed to frequent brownouts and voltage fluctuations affecting businesses.

It said any tariff adjustments under the venture should comply with Energy Regulatory Commission rules and remain subject to public oversight.

The agreement should also bind Ignite to modernize SOCOTECO II’s facilities, particularly substations, reduce system losses and improve technical response times.

“The Gensan Chamber does not oppose modernization or strategic partnerships per se; we strongly advocate for solutions that fix our energy infrastructure while respecting the legal and economic rights of the MCOs. 

Reliable power supply; affordable electricity rates; good governance, accountability, and operational integrity; equity protection and ownership rights of the cooperative; and full transparency and informed consent of the MCOs are the bedrock and non-negotiable principles upon which we stand in connection with the proposed conditional joint agreement,” the chamber said.

The business group had previously preferred for SOCOTECO II to remain a distribution utility if it could improve governance and secure funding for facility upgrades. 

It said, however, that “the confluence of internal and external factors” had made it practically difficult for the cooperative to continue operating on its own.

“SOCOTECO II’s Board of Directors already made this abundantly clear, and has chosen IGNITE Power and Energy Holdings, Inc. or IGNITE to be its joint venture partner,” it said.

The chamber also sought measurable targets for power reliability, service quality and customer responsiveness, as well as penalties, remedies and termination provisions if Ignite fails to meet its investment and service commitments.

It proposed an independent monitoring committee composed of consumer representatives, business leaders and technical experts.

The chamber also called for protection of SOCOTECO II’s reported 30 percent stake in the venture through anti-dilution provisions that would preserve its board representation and voting rights.

It likewise sought full disclosure of the CJVA’s financial projections, valuation methods, asset transfer terms, and risks before the plebiscite.