Vote Yes To The Primelectric And CENECO Joint Venture Agreement

Plus, Understanding That Prime Water and Primelectric Have No Connection With Each Other

Experiencing frequent unscheduled power outages is a common phenomenon in Bacolod City. That’s the reason why many people are pushing for the approval of the Primelectric and CENECO JVA (Joint Venture Agreement).

The electricity service provided by CENECO this past decades have been less than satisfactory so the JVA with Primelectric/NEPC (Negros Power), owned by Mr. Enrique Razon, will greatly improve the services. Thus, lessening unscheduled brownouts and reducing the price of electricity, among many other advantages.

IMPORTANT INFO ABOUT THE JVA OF CENECO WITH PRIMELECTRIC

Some CENECO member-consumers are having second thoughts about giving their approval because of a few reservations. Below are some important answers to their valid questions regarding the JVA.

What are the differences between the JVA of BACIWA-Prime Water and CENECO-Primelectric?

Many people here in Bacolod think that Prime Water and Primelectric are affiliated with each other. That’s entirely false. The two companies have no connection with each other whatsoever.

⯈ Prime Water is owned by Manny Villar. Primelectric, on the other hand, is owned by Enrique Razon.

⯈ BACIWA is a government-owned and controlled corporation (GOCC), while CENECO is an electric cooperative corporation registered with the SEC, not a GOCC.

⯈ The CENECO JVA with Primelectric requires a plebiscite to be approved by consumers. The BACIWA and Prime Water JVA didn’t have a plebiscite.

⯈ Prime Water didn’t pay for BACIWA’s facilities when they entered the JVA. Primelectric committed to investing Php 2 billion in capital for modernization, distribution system rehabilitations, and upgrading in their JVA with CENECO.

If, and when the JVA takes place, the price of electricity will get cheaper. Why is this so?

⯈ There will be no increase in CENECO’s distribution charge of Php 1.18.

⯈ There will be a decrease in the system loss that’s passed on to consumers. It’ll become 5.5% from 8.25% for CENECO. Thus, a decrease in power rates.

Will CENECO be privatized?

CENECO will not be privatized because it’s already a private company registered with SEC since 1975. Primelectric is buying CENECO’s distribution assets for them to have authority to improve their facilities. CENECO will continue its 30% ownership of the distribution utility company.

Does Primelectric have VAT?

Primelectric pays VAT because it’s a requirement of the BIR. CENECO likewise pays VAT. Primelectric, however, will have a lower VAT because most of the electricity they’ll source will be renewable energy which is VAT-exempt.

Is there a penalty when payment is late?

There will be a penalty charge of 2% of the total overdue amount for late payments if you’re unable to pay after the 48-hour grace period. However, your electricity will not be cut off right away.

Will consumers have a voice in the JVA?

Yes, consumers will still have a voice because CENECO has 3 seats in the NEPC Board and 1 independent director who’ll be the representative of the consumers in policy and decision making.

Are the consumers the owners of CENECO?

No, the consumers are not the owners. However, once the JVA is approved, CENECO can be converted into a true cooperative and consumers will be given proof of ownership and can qualify to receive dividends from CENECO’s earnings from its 30% share in the Joint Venture company.

Will the Barangay Electrification Program continue?

Yes, it’ll continue because the program is funded by the national government, and not by CENECO.

VOTE YES TO JVA

I believe that most if not all questions have already been addressed clearly. There’s no longer any reason for consumers to not support the CENECO and Primelectric JVA. Please keep in mind that this is the solution to our electricity problems. Not only will the price of electricity go down, but there will be also lesser unscheduled brownouts.