I SUPPOSE somebody has to say it and it’s probably me. The myth of the “filthy rich haciendero” in Bacolod is just that today – a myth.
Perhaps in the 1960s till the early ‘70s the “filthy rich haciendero” did exist but with the volatile world market and the slump of the sugar industry – and Bacolod just a one-crop town – almost every other haciendero went bankrupt and neck deep in debts.
Bacolod did managed to survive as business diversified and just as things seemed to be alright, something happened along the way. As if the last remaining market of sugar slowly eaten away by corn syrup was not enough, the city started suffering intermittent power failures and extended brownouts, the telltale signs that their power provider was no longer capable of providing the city’s power needs.
And for a city on the way to recovery, the last thing it needs is an unstable power provider.
For decades the sole power distribution utility of Bacolod and nearby local government units (LGUs) is CENECO or Central Negros Electric Cooperative. Yes folks, it’s a cooperative usually associated with small towns and not an HUC or a Highly Urbanized City. Eventually, with miniscule resources and almost no new investment, the power situation is more than it is capable of handling and things get from bad to worse.
Something has to be done to stop the “bleeding” and save Bacolod from reverting back to the “dark days” of the sugar slump.
And here comes the Joint Venture Agreement (JVA) between CENECO and Primelectric Holdings, Inc. / Negros Electric Power Corporation (a sister company of Iloilo’s MORE Power) which will be the lifeline to save an ailing CENECO and Bacolod.
I suppose there’s no need for me to talk about this JVA since it’s all over the news, everyone’s lips, and the current topic in coffee shops, literally, the “flavor of the month” in Bacolod.
Rather let’s talk about what ails CENECO other than the usual rumors.
One, about 50% of the facilities i.e. substations are more than 30 years old and could no longer provide for the power needs of the consumers.
Then, it has no resources or funds to purchase new equipment to upgrade these facilities.
Next, it is neck-deep debt to banks amounting to P800 million and since 2011, its request to the Energy Regulatory Commission (ERC) for Capital Expenditure (CAPEX) was not approved.
Its systems loss is more than 11% than the allowable 8.5% hence according to the ERC it’s losing P40 million a month. The franchise will expire in 2030 and in the current state it will be difficult for a renewal.
If the JVA pushes through, Primelectric Holdings, Inc. / Negros Electric Power Corporation will give CENECO P1.7 billion in cash to pay for 70% of its assets, enough to pay the retirement of its employees and as patronage refund to member-consumers.
More than enough CAPEX will come in to upgrade and modernize the facilities and distribution system.
Power supply will be sourced through the Competitive Selection Process to get the cheapest cost possible from renewable energy sources.
All of these and more will come to Bacolod i.e. cheaper electric rates, excellent customer relations and service which will result into more investments, more jobs and taxes for the LGUs for their development projects and the continuation of the Barangay Electrification Program.
One just needs to look at Iloilo City after three years with MORE Power as its power provider, the sister company and prime mover of Primelectric Holdings, Inc. / Negros Electric Power Corporation. We need not elaborate on the track record of MORE Power as “more than a power distribution utility but a partner in the development of Iloilo City” as it is already the standard on how power distribution utilities should be as corporate citizens.
I’ll leave you with these lines from Bacolod City’s Mayor Albee Benitez” “JVA is a White Knight that would save our consumers from a looming disaster”./PN
