‘Critical juncture’; House committee gives nod to bill granting franchise to NEPC 

Posted by watchmen
November 15, 2023
Posted in HEADLINE
The Committee on Legislative Franchises approves House Bill 9310, which seeks to grant the Negros Electric and Power Corporation (NEPC) a franchise to operate and maintain a power distribution system in Negros Occidental. The move signifies a critical juncture in reshaping the energy landscape in central Negros, with NEPC poised to play a transformative role in the power distribution services.
The Committee on Legislative Franchises approves House Bill 9310, which seeks to grant the Negros Electric and Power Corporation (NEPC) a franchise to operate and maintain a power distribution system in Negros Occidental. The move signifies a critical juncture in reshaping the energy landscape in central Negros, with NEPC poised to play a transformative role in the power distribution services.

By Mae Singuay

The House Committee on Legislative Franchises gave its preliminary approval to House Bill (HB) 9310, which seeks to grant the Negros Electric and Power Corporation (NEPC) a franchise to operate and maintain a power distribution system in Negros Occidental, during a pivotal session at the Batasang Pambansa Complex in Quezon City on Monday, November 13.

The decision follows a comprehensive review of the NEPC’s proposed franchise presented by four Negrense lawmakers — Juliet Marie Ferrer (Negros Occidental’s 4th district), Francisco Benitez (3rd district), Greg Gasataya (Bacolod lone district), and Abang Lingkod Party-list Representative Stephen Paduano.

During the deliberations, the Negrense representatives underscored the urgency of the franchise, citing the financial struggles faced by the Central Negros Electric Cooperative (Ceneco).

These challenges stem from a shortage of capital expenditures crucial for the modernization of power facilities.

The committee on franchise, chaired by Gus Tambunting, engaged in robust discussions about HB 9310, which outlines the transfer of the franchise from the beleaguered Ceneco to NEPC.

The committee approved the proposed bill, but it was contingent upon the submission of specific documentary requirements.

Roel Castro, NEPC president, said they would submit the documents and answer the issues raised by some committee members during the session.

Castro said the NEPC will greatly improve power distribution services in central Negros.

“The service is not really that good. They have frequent brownouts. It takes them months to comply when you apply for a new connection … The system loss is already beyond the cap,” Castro said.

He said he is confident that the Congress will grant the franchise.

“I would say that the approach to rehabilitate and make a turnaround is something we have done in Iloilo, and now we aim to do the same in Negros,” Castro said.

Representatives from the National Electrification Administration, the Energy Regulatory Commission, and the Securities and Exchange Commission were present at the hearing, as they reflected on the gravity of the committee’s decision.

The focal point of the discussions was the joint venture agreement (JVA), entered between the NEPC and Ceneco, emphasizing the conduct and outcome of its ratification through a plebiscite.

In past months, the majority of Ceneco member-consumer-owners cast their votes in favor of the JVA, further solidifying the rationale behind the transition.

The move signifies a critical juncture in reshaping the energy landscape in central Negros, with NEPC poised to play a transformative role in the power distribution services.

The scope of the franchise encompasses the Negros Occidental cities of Bago, Silay and Talisay, as well as the municipalities of Murcia and Don Salvador Benedicto, and capital Bacolod City.

Meanwhile, Bacolod Mayor Alfredo Abelardo Benitez appealed to Congress for the speedy approval of HB 9310 within this year.

“Kun ako gani, pwede dali-on kag tapuson nila by this year, so that we can move forward,” Benitez said.

“We’re hoping for better service, kay hambal nila sa akon, they will promote green power and we are looking at converting Bacolod to be a fully renewable energy-powered city,” he added./MS, WDJ

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