GenSan co-op takes Negros Power route with Ignite joint venture

By Francis Allan L. Angelo

GENERAL SANTOS CITY — Member-consumer-owners (MCOs) of the South Cotabato II Electric Cooperative Inc. (SOCOTECO II) have approved a conditional joint venture agreement (CJVA) with Ignite Power and Energy Holdings Inc., clearing the first hurdle for a private-led company to take over and modernize the cooperative’s power distribution network.

The cooperative’s Overall Plebiscite Committee (OPCOM), acting as the Overall Board of Canvassers, proclaimed the final results on Oct. 18, with 137,978 MCOs voting yes and 4,811 voting no, for a total of 142,789 valid votes.

The yes votes account for 60.91% of the 226,534 eligible voters on SOCOTECO II’s final master list, the basis of what Ignite Power calls its “60.9% affirmative mandate.” Measured against valid votes cast, the yes side took 96.63%, while turnout stood at 63.03%.

The outcome matters to households, businesses, and industries in General Santos City, Sarangani, and South Cotabato, where SOCOTECO II has been struggling with severe operational and financial strain and where local business groups had warned of risks to jobs and factories from power problems.

The deal also promises lower charges: Ignite Power aims to cut the system-loss charge passed on to consumers from the cooperative’s current recoverable cap of 8.25% to 5.5%.

Yet the vote does not hand over the grid. The agreement still needs consent from the National Electrification Administration (NEA), a congressional franchise, presidential approval, and a permit from the Energy Regulatory Commission (ERC) before the new company can operate.

The arrangement follows the model of Negros Power, a joint venture between the Central Negros Electric Cooperative (CENECO) and Primelectric, which took over power distribution from the cooperative in Bacolod City and nearby areas.

On the operations side, Ignite Power can draw on MORE Power, Primelectric’s distribution utility in Iloilo City.

Ignite Power is backed by Primelectric Holdings Inc. and Manny Pacquiao’s MP Holdings Inc.

Under the proposed terms, Ignite Power would acquire SOCOTECO II’s distribution assets, paying 70% in cash and converting the remaining 30% into the cooperative’s equity stake in the new distribution company.

“Ignite Power is deeply grateful to the member-consumer-owners (MCOs) of SOCOTECO II for participating in the plebiscite and for giving the Joint Venture Agreement a 60.9% affirmative mandate,” the company said in a statement.

“We sincerely thank everyone who took part in this important democratic process. We recognize that this trust carries a great responsibility, and we are committed to honoring it through hard work,” it said.

“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,” the company added.

“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,” Ignite Power said.

The company said this includes improving customer care and services, investing in critical infrastructure, improving operational efficiency, and strengthening the system’s capacity to serve households, businesses, and industries.

“The results of the plebiscite are just the start of our journey to transform electricity services in the region, and we vow to approach the road ahead with humility, respect, and a genuine willingness to listen,” it said.

The OPCOM conducted the plebiscite under Section 36(b) of Presidential Decree No. 269 over four weekends: Sept. 19-20, Sept. 26-27, Oct. 10-11, and Oct. 17-18.

Voter eligibility was based on SOCOTECO II’s membership records as of Aug. 6, 2026, and the final master list issued after the verification period closed on Sept. 17, 2026.

The certificate of proclamation, issued in General Santos City, was signed by OPCOM Chairperson Jessie F. Alaban, Vice Chairperson Musa N. Mang, and members Peter Jayson A. Acharon, Ben B. Advincula, and Mae V. Mendoza.

The vote followed a legal challenge. A South Cotabato regional trial court issued a 72-hour temporary restraining order on Sept. 4 halting the plebiscite, whose first leg had been set for Sept. 5 and 6.

Civil society groups, including Bantay Kuryente Consumer Watch Inc., and members of the clergy opposed the deal, while Rep. Shirlyn Bañas-Nograles filed House Resolution 1401 seeking a House energy committee probe and a deferment of the vote.

The Regional Trial Court in Polomolok, South Cotabato, later lifted the order, ruling that the petitioner failed to establish the requirements for the remedy.

Ignite Power said the plebiscite result does not allow the new joint venture company to begin operations immediately, as several legal processes, regulatory approvals, and other requirements must first be completed.

First, SOCOTECO II must secure the appropriate consent or approval of the NEA for the CJVA, in accordance with applicable laws and regulations.

Second, the transaction must undergo review by the Philippine Competition Commission (PCC), if covered by competition laws and regulations.

Third, Congress must act on an application for a 25-year legislative franchise for Mindanao Electric and Power Corp. — Pioneered by SOCOTECO II, or Mindanao Power, which cannot operate as an electric distribution utility without it.

The company said the franchise process will be open to public scrutiny, and SOCOTECO II’s MCOs may take part in congressional hearings.

Fourth, once Congress passes the franchise bill, the measure must go through the presidential approval process to become law.

Fifth, the law must comply with publication requirements governing its effectivity.

Sixth, Mindanao Power must secure a Certificate of Public Convenience and Necessity (CPCN) from the ERC, along with other permits, before it can fully commence operations. Interested parties may join ERC hearings on the application.

Finally, once all requirements are met, management, operations, and relevant personnel will transition from SOCOTECO II to the joint venture company under an agreed transition plan and applicable labor laws.

While approvals are pending, Ignite Power said it is ready to work with SOCOTECO II to identify the system’s immediate needs and prepare measures for gradual rehabilitation, subject to legal limitations and necessary authorizations.

The company said these efforts would target substation capacity, overloaded equipment, and other weaknesses in the distribution system that may lead to power interruptions.

It stressed, however, that any actual intervention or rehabilitation work must be carried out under SOCOTECO II’s authority and in compliance with all required approvals.

“Change will not happen overnight. There are processes to follow, documents to complete, and approvals to secure before the new joint venture company can fully commence operations,” the company said.

“As we take this next step, we ask for your continued prayers, guidance, and support. We know that trust must be earned through action, and we look forward to working together toward a more reliable, responsive, and sustainable power future for SOCSARGEN,” it said.

“The true measure of success is not simply winning the plebiscite, but fulfilling the promises that come with it: a better distribution system, more reliable electricity service, and a brighter future for consumers,” Ignite Power said.

“Daghang salamat sa inyong pagsalig. This is not the finish line, but the beginning of a shared responsibility to serve our communities better,” the company said, using the Cebuano phrase for “thank you very much for your trust.”