Primelectric Holdings Inc. has assured Bacolod City Mayor Alfredo Benitez of its commitment to invest P2 billion for the expansion and modernization of the Central Negros Electric Cooperative (Ceneco).
In a letter to Benitez, Primelectric and Negros Electric and Power Corporation (NEPC) president Roel Castro said the investment will be made over a period of five years.
He added that Primelectric is also committed to providing stable power in the franchise area within two years from its takeover of the operations.
“We are firmly committed to provide stable power in the franchise area within two years from our takeover of the operations, in compliance with our obligations as a distribution utility under the EPIRA, and our franchise, if approved by Congress,” Castro said.
Castro also said that Primelectric will be charging value-added tax (VAT) for its services, as required by the Bureau of Internal Revenue. However, he stressed that Ceneco is also required to pay VAT for its generation, transmission, and distribution charges.
“While there is no JVA to govern the MORE Power, our sister company in Iloilo, it followed through with its commitment under the franchise (RA11212) in ensuring the continuous and uninterrupted supply of electricity in the franchise area,” Castro said.
“That will sum up how we take seriously our commitment, even without any contractual commitment of a JVA,” he stressed.
