Primelectric’s Ignite Power and Energy Holdings Inc. on Monday welcomed the approval of its proposed joint venture with the South Cotabato II Electric Cooperative (SOCOTECO II), vowing to modernize the cooperative’s power distribution system and improve electricity services across its franchise area.
The cooperative’s Overall Plebiscite Committee proclaimed the final results on Sunday, with 137,978 member-consumer-owners (MCOs) voting in favor of the conditional joint venture agreement (CJVA), against 4,811 who voted against it.
The affirmative votes represented 60.91 percent of the 226,534 eligible voters on the final master list. A total of 142,789 valid votes were cast during the four rounds of voting held from September to October.
Primelectric President and CEO Roel Z. Castro said the company welcomed the outcome and recognized the responsibility that came with the MCOs’ decision.
“We welcome the results of the plebiscite and thank the member-consumer-owners who participated in this important decision. Their vote gives us the opportunity 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.
The proposed partnership aims to address SOCOTECO II’s longstanding financial and technical challenges through fresh capital, infrastructure upgrades and operational improvements.
Castro said the company would draw on its experience in modernizing electricity distribution systems, including through MORE Power in Iloilo City, Negros Power in Bacolod, and Bohol Light in Tagbilaran, to help strengthen SOCOTECO II’s operations.
“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,” he said.
The proposed joint venture includes a modernization program, a commitment to reduce system losses from 8.25 percent to 5.5 percent, and a 30-percent profit share for SOCOTECO II.
System losses refer to electricity lost through technical and nontechnical factors before it reaches consumers. Reducing these losses is among the measures intended to improve the efficiency of the distribution network.
The partnership comes amid concerns over the cooperative’s financial position, aging facilities and the potential impact of tighter power supply on businesses and economic activity in the region.
The General Santos City Chamber of Commerce and Industry has backed the proposed joint venture, warning that unreliable electricity could put manufacturing operations, investments and jobs at risk, particularly with the anticipated effects of El Niño.
With the final results now proclaimed, Castro said Ignite Power would focus on delivering the proposed improvements and working with SOCOTECO II and relevant stakeholders.
“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.
