A possible reduction in power rates looms for Negros Occidental as the Negros Electric Cooperative (CENECO) joins forces with Primelectric Holdings Inc. (PHI) under the Negros Electric and Power Corp. (NEPC).
The collaboration is expected to slash the current rate of Php 9.93 per kilowatt-hour (kWh) in Iloilo by at least Php 1.00.
A Philippine Daily Inquirer-published story indicated that NEPC President Roel Castro conveyed optimism about a lower electricity cost if the franchise is granted.
In a Senate hearing scrutinizing the franchise application on Tuesday, Castro explained that a similar approach was successfully implemented in Iloilo, immediately reducing rates upon entering into an emergency power supply agreement.
During the hearing, CENECO General Manager Atty. Arnel Lapore highlighted the cooperative’s escalating losses, which surged from Php 20 million in 2021 to Php 173 million in 2022, attributing the financial strain to increasing electricity demand amidst economic growth.
Addressing the challenges, Castro expressed confidence in resolving issues, including power outages, with a Php 2.1 billion investment from PHI. He claimed that a substantial portion of the investment is earmarked for rural electrification and assured that CENECO employees would be given priority in hiring.
Amid expressions of interest from over 250 CENECO employees to join NEPC, Castro emphasized the partnership’s potential benefits for member consumers and the economic growth of Central Negros, seeking the committee’s support for the pioneering collaboration.
Senator Grace Poe acknowledged the positive aspects of the joint venture, given the expiration of franchises for several cooperatives.
