Razon’s power play has paid off

By Herbert Vego

IN a recent feature story written for ABS-CBN News, author Salve Ibañez called industrial tycoon Enrique Klar Razon Jr. “the new energy kingpin.”

That label resonates with us in Iloilo City because it was here where he first planted the seeds of diversification to the energy sector.

To quote the first paragraph of Ibañez’s article:

“When Enrique Razon Jr. first entered electric distribution in 2020, industry veterans dismissed it as diversification theater from a ports and casino tycoon dabbling in utilities. Five years later, Razon has assembled what may become the Philippines’ most vertically integrated energy empire—and he’s doing it while maintaining the lowest power rates in Western Visayas.”

Pessimists in that year interpreted Razon’s move as a “gamble”.

But Razon thought it would pay off in the long run.  All he needed are the right people to run the new venture, which meant having Roel Zabala Castro as president and chief executive of MORE Electric and Power Corp. (MORE Power).

Castro fought tooth and nail for a congressional franchise to distribute electricity in Iloilo City in the next 25 years.

To make the long story short, in accordance with Republic Act No. 11212, MORE Power bagged the franchise on an investment of P1.9-billion.

It was an indication of Razon being a risk taker. As he himself told economist Solita “Winnie” Monsod in a TV interview, “Yes, I take risks. I may lose but I recover my losses from the earnings of my other ventures.”

He is the chairman of the International Container Terminal Services, Inc. (ICTSI), the port-handling giant providing container-port terminal services in Manila, Subic, Batangas, General Santos City; and abroad in Poland, Brazil, Mexico, Africa, the Middle East, and Latin America.

He also owns the world-class Solaire Casino and Resort in Manila, for which he plunked US$1.2 billion to build despite his non-experience in the gaming industry. He relied more on gut feeling, knowing that high rollers from around the world had been coming to the Philippines to play in the casinos.

The then Iloilo City Mayor Jerry P. Treñas called MORE Power’s takeover of the city’s power distribution “crucial” for its economic growth through modernization of cost-effective electricity distribution.

“Success” is the word that best describes Castro’s hard work, as shown by the rapid growth of MORE Power from 62,000 customers in 2020 to 115,000 today, and still counting.

Razon has since then ventured into other power power-distribution utilities under the umbrella of Primelectric Holdings Inc. (PHI), which is also now majority owner of the Negros Electric and Power Corp. (Negros Power) in Bacolod City and Bohol Light in Tagbilaran City.

Negros Power sprang from Primelectric’s partnership with Central Negros Electric Cooperative (CENECO) via a joint venture agreement done on Jun 3, 2023. It was the only way to save the co-op, which had sunk deeper in accumulated loans amounting to more than ₱600 million.

In late 2024, Primelectric bought the 70% majority stake of Bohol Light Company, Inc. (BLCI) from SPC Power Corporation and other minority shareholders for nearly $200 million. The remaining 30 percent remains with the Bohol provincial government.

I must stress here that MORE Power, Negros Power and Bohol Light have only one president/CEO in the person of Roel Z. Castro.

Incidentally, the prestigious Asia CEO Awards named MORE Power as the CSR Company of the Year in a well-attended ceremony at Manila Marriott Grand Ballroom last October 14.

CSR” stands for corporate social responsibility through comprehensive programs aimed at environmental protection, livelihood support, and youth development.

Of course,  Sir Roel Castro was there to receive the award.