Ignite Power brings Iloilo playbook to SOCOTECO II

By Francis Allan L. Angelo

Ignite Power & Energy Corp. is pitching a Primelectric-tested roadmap for steadier electricity service in Mindanao through a multibillion-peso investment to upgrade South Cotabato Electric Cooperative II (SOCOTECO II) which serves South Cotabato, Sarangani, and the highly urbanized city of General Santos in SOCCSKSARGEN or Region XII,

Primelectric-linked utilities elsewhere in the Philippines, particularly in Iloilo, have leaned on aggressive grid rehabilitation, system loss-reduction drives and digital customer service to stabilize power delivery, and Ignite Power said it aims to apply the same playbook to address SOCOTECO II’s outages, aging infrastructure, and high system losses.

Ignite Power said it has submitted a proposal to modernize and operate SOCOTECO II’s electricity distribution system, framing the plan as a response to power disruptions and high electricity rates in the region.

Ignite Power is a joint venture between Razon-owned Primelectric Holdings and former senator Manny Pacquiao’s MP Holdings, with Primelectric holding a 70% stake and MP Holdings 30%.

The company also positioned the proposal within Primelectric’s broader distribution-utility footprint, describing Ignite Power as a sister firm of MORE Electric and Power Corp. in Iloilo, Negros Electric and Power Corp. in central Negros Occidental, and Bohol Light Company Inc in Tagbilaran City, Bohol

Under Ignite Power’s proposal, SOCOTECO II would retain its cooperative identity, board and member-consumer ownership, the company said.

“They just received our proposal. If successful this will be our fourth DU to extend our assistance to bring better services to their existing customers,” Primelectric President and CEO Roel Castro said.

Pacquiao, speaking during a press conference at the Grand Summit on Jan. 29, 2026, said SOCOTECO II will continue to exist as a cooperative and will retain its identity, management structure and mandate to serve its member-consumers.

SOCOTECO II serves General Santos City, Sarangani province, and the municipalities of Tupi and Polomolok in South Cotabato, placing the proposed upgrades at the center of electricity service for a wide swath of the SOCCSKSARGEN area.

Castro said frequent power outages, low voltage in remote areas, aging infrastructure and high system losses are among the key challenges it aims to address in the cooperative’s franchise area.

The company said its modernization program is intended to lower consumer power rates to levels among the most competitive in the Philippines while improving reliability.

Castro said they are bringing operational experience from utilities it operates, including MORE Power in Iloilo City, Negros Power and Electric Corp. in Negros Occidental, and Bohol Light Co. Inc. in Tagbilaran City.

Ignite Power’s operational track record includes reducing system losses, improving response times and expanding customer service through digital platforms, mirroring steps pursued by other Primelectric-run distribution utilities, he added.

Castro also emphasized that the arrangement it is pursuing does not constitute privatization of SOCOTECO II, underscoring that the cooperative would remain in place under the proposed structure.

He added that any rate adjustments would remain under the supervision of the Energy Regulatory Commission (ERC), with no automatic increases.

Ignite Power’s proposal would still require approval from SOCOTECO II member-consumer owners through a referendum, which Castro described as a safeguard meant to strengthen transparency and accountability.

‘INVESTMENT MAGNET’

Pacquiao said that if approved, the partnership could support regional development by attracting investment, creating jobs and positioning SOCCSKSARGEN as more investment-ready.

The former senator and boxing icon-turned-businessman said Ignite Power has formally put forward a joint venture proposal with SOCOTECO II aimed at upgrading electricity distribution across the SOCCSKSARGEN region.

He add that the plan is a partnership arrangement, not a takeover, as Primelectric seeks to reassure member-consumers about control and ownership.

Under the proposed joint venture structure, Castro said Ignite Power would hold 70% equity while SOCOTECO II would retain 30% ownership, with Ignite managing daily operations and financing infrastructure improvements while the cooperative remains a shareholder.

The proposal remains subject to SOCOTECO II board deliberation and must still win approval through a member-consumer referendum before it can be implemented.

Pacquaio linked the modernization push to investor concerns, saying unreliable electricity service remains a key issue for potential investors in the SOCCSKSARGEN area planning large commercial and industrial developments.

He said businesses exploring opportunities in the region regularly inquire about power reliability before finalizing investments because shopping centers, hospitals and manufacturing facilities require stable electricity to operate efficiently.

He added that frequent outages can delay expansion plans and weaken investor confidence, and that enhancing reliability could help stimulate economic growth and create additional jobs.

ILOILO EXPERIENCE

Castro pointed to their experience in Iloilo City as proof it can rehabilitate a distribution system, citing the company’s takeover of the previous distribution utility in 2020 as a model for system improvement.

“Iloilo City previously experienced regular brownouts, outdated facilities and high system loss, and that after franchise approval the company invested around PHP 2 billion in its first year to upgrade substations, replace aging meters and modernize feeder lines,” he added.

Castro said MORE Power’s Iloilo investments significantly lowered system loss and improved service dependability, outcomes the company is using as a reference point for what it says is possible in SOCOTECO II’s coverage area.

“If approved, SOCOTECO II’s rehabilitation could be executed through a phased program spanning up to five years. We can invest an initial PHP 2 billion then infuse additional capital until the situation stabilizes.”

Castro said proposed enhancements could include substation modernization, transformer upgrades, pole replacements and integration of automation systems, subject to technical evaluation.

Reducing system loss is a central objective because it covers both technical inefficiencies and electricity theft, which utilities typically treat as a combined operational and enforcement challenge.

Castro said regulators allow a certain percentage of system loss to be passed on to consumers, but any excess must be absorbed by the utility, making loss reduction a direct lever for improving utility finances and service delivery.

He cited Iloilo’s case, saying system loss reportedly dropped from around 30% to single-digit levels following comprehensive modernization efforts.

He also said power rates are largely influenced by generation costs that vary with market conditions, which can limit how quickly distribution-side fixes translate into lower bills.

Castro said approximately 60% of a consumer’s electricity bill comes from generation expenses while distribution charges are comparatively steady.

Primelectric operates a round-the-clock trading team to monitor the energy market and secure competitive supply contracts, when possible, while stressing that immediate rate reductions cannot be guaranteed because of fluctuating market factors.

Castro said the proposal will proceed only if SOCOTECO II member-consumers approve it through a formal referendum, with majority support required.

Information campaigns will be conducted ahead of any vote to explain the proposal and reinforce that the final decision lies with member-consumers.

Electric cooperatives like SOCOTECO II are private, non-stock, non-profit entities owned by member-consumers, and joint venture proposals in the power sector typically require regulatory review and local stakeholder approval because distribution utilities operate under franchises and rate-setting oversight.