Socoteco II members back Ignite Power modernization deal

GENERAL SANTOS CITY — More than 32,000 member-consumer-owners of South Cotabato II Electric Cooperative endorsed a proposed conditional joint venture with Ignite Power Corp. to rehabilitate and modernize the cooperative’s aging electricity distribution network.

The endorsement was made during Socoteco II’s 43rd annual general membership assembly on July 25, held simultaneously at four venues in General Santos City and Sarangani province.

The assembly’s approval moves the proposed partnership forward but does not make it final.

Members must still vote in a plebiscite, while the National Electrification Administration must issue guidelines governing the schedule and mechanics.

For households and businesses, the proposed agreement could determine whether Socoteco II can attract enough capital to improve service reliability while keeping electricity affordable and protecting the decision-making rights of its member-consumer-owners.

Socoteco II board President Elenito Senit said he signed the conditional joint venture agreement with Ignite Power on July 23 after receiving authorization from the cooperative’s board of directors.

The assembly ratified a board resolution authorizing Socoteco II to enter into the agreement.

Senit said the proposed partnership would help address the cooperative’s long-standing financial and technical challenges by securing investments for the rehabilitation, expansion and modernization of its distribution facilities.

The investments are also intended to improve service reliability and strengthen Socoteco II’s long-term financial viability.

Under the proposal, Ignite Power would infuse fresh capital to rehabilitate aging distribution facilities, expand substations and feeder capacities, replace obsolete equipment and modernize the distribution network.

The network serves General Santos City, all seven municipalities of Sarangani province, and the municipalities of Polomolok and Tupi in South Cotabato.

Ignite Power is a joint venture between Primelectric Holdings Inc., led by businessman Enrique Razon Jr., and MP Holdings Inc., owned by boxing legend and former Sen. Manny Pacquiao.

Primelectric earlier said Ignite Power was prepared to invest up to PHP 10 billion in Socoteco II’s distribution system.

The assembly also approved two additional resolutions.

One resolution expressed support for private-sector investment to improve electricity service across Socoteco II’s franchise area.

The other called for the immediate conduct of a plebiscite in which members would decide whether the proposed partnership should become final and executory.

The plebiscite is a key consumer safeguard because the assembly endorsement and board authorization alone do not complete the transaction.

Senit directed Socoteco II’s Institutional Services Department to conduct an information, education and communications campaign before the vote.

The campaign is expected to explain the agreement’s provisions, benefits, obligations and long-term implications to member-consumer-owners.

Senit said the cooperative would coordinate with the National Electrification Administration and await its guidelines before finalizing the date and procedures for the plebiscite.

The government agency is mandated to supervise electric cooperatives and promote reliable electricity service under the National Electrification Administration framework.

Speaking during the assembly, Sarangani Gov. Ruel Pacquiao called for closer coordination between the power sector and national government agencies to maintain reliable service and affordable rates.

“Investors choose locations where electricity is reliable, stable, and affordable,” Pacquiao said.

“We must work together to identify practical solutions that will provide consumers with dependable electricity at a reasonable cost through transparency, efficiency, and responsible governance,” the governor said.

The proposed modernization could support households, commercial establishments and industries that depend on a stable distribution system, but its public benefit will ultimately depend on the agreement’s investment guarantees, service targets, governance safeguards and effect on electricity charges.

Socoteco II members will have the final opportunity to assess those terms during the information campaign and plebiscite.