Ignite Power eyes Mindanao expansion after SOCOTECO II vote

Ignite Power and Energy Holdings Inc. is eyeing a wider foothold in Mindanao’s electricity distribution sector after securing overwhelming support for its proposed joint venture with South Cotabato II Electric Cooperative (SOCOTECO II).

The Primelectric subsidiary said Monday it is now looking to bring its power distribution modernization strategy to General Santos City, Sarangani, and South Cotabato, where unreliable electricity and aging infrastructure have raised concerns over business operations and investment prospects.

The cooperative’s Overall Plebiscite Committee proclaimed the final results on Sunday, with 137,978 member-consumer-owners backing the conditional joint venture agreement, against just 4,811 who opposed it.

The affirmative votes represented 60.91 percent of the cooperative’s 226,534 eligible voters, with 142,789 valid votes cast during four rounds of voting from September to October.

Primelectric President and CEO Roel Z. Castro said the vote allows the company to tackle the cooperative’s longstanding financial and operational problems.

“We welcome the results of the plebiscite and thank the member-consumer-owners who participated in this important decision. Their vote allows us to move forward with the work of modernizing SOCOTECO II’s distribution system and improving the reliability of electricity services for the communities it serves,” Castro said.

Under the proposed partnership, Ignite Power plans to inject fresh capital, upgrade critical infrastructure and improve operational efficiency to strengthen electricity services across the cooperative’s franchise area.

A key target is to cut system losses to 5.5 percent from 8.25 percent, reducing electricity wasted or lost before reaching consumers.

The agreement also provides SOCOTECO II with a 30-percent profit share.

“Our priority is to build a more reliable and efficient distribution system that can keep pace with the growing needs of General Santos City, Sarangani and South Cotabato.

This means improving customer care and services, investing in critical infrastructure, improving operational efficiency and strengthening the system’s capacity to serve households, businesses and industries,” Castro said.

The General Santos City Chamber of Commerce and Industry has backed the partnership, warning that unreliable electricity could put manufacturing operations, investments and jobs at risk, particularly as El Niño threatens to tighten power supply.

“For us, the vote is a mandate to work toward better service. The real measure of this partnership will be the improvements consumers experience over time: a stronger distribution network, more reliable electricity and an electric utility better equipped to support the region’s growth,” Castro said.