Negros Power Gets Nod of Congress

Last Tuesday, February 13, 2024, the 2nd regular session of the 19th Congress was held. The Committee on Legislative Franchises presented Committee Report No. 936 on House Bill No. 9805, which passed the second reading. It is still a long way to go for the Negros Electric and Power Corp. to be established. But it is on the right track for Negros Power to finally happen in Central Negros.

• Related: SecuRE Negros: Ensuring Power Security with Renewable Energy

House Bill No. 9805 Passes 2nd Reading for the Granting of Franchise for Negros Power

Sponsored by Central Negros Occidental representatives, House Bill No. 9805 is related to granting a franchise to Negros Electric and Power Corp. (NEPC). This will enable them to establish, operate, and maintain an electric power distribution system for commercial purposes in the specified area for public interest in general.

The franchise is specifically intended to serve the cities of Bacolod, Silay, Talisay, and Bago, as well as the municipalities of Murcia and Don Salvador Benedicto in the province of Negros Occidental. It will last for 25 years.

Major Details

During the debate in the plenary, Congressman Gus S. Tambunting, who chairs the Legislative and Franchises Committee, emphasized that Central Negros Electric Cooperative (CENECO) will still own 30 percent of NEPC. Moreover, all of CENECO’s debts and financial obligations will be settled through the Joint Venture Agreement (JVA).

He also assured that employees will be taken care of. All the retirement and separation fees due to them from CENECO will be paid for in accordance with the Collective Bargaining Agreements (CBA). They will also be given a first preference if they wish to apply to NEPC, which will be the company, because of their work experience.

The NEPC Franchise

The primary objective of this franchise is to ensure the continuous and uninterrupted supply of electricity in the abovementioned franchise area. Furthermore, it aims to meet the energy needs of the residents and contribute to the region’s development and progress.

This legislation marks a significant step toward addressing the energy requirements of the covered areas, promoting economic growth, and enhancing the overall quality of electric distribution for the residents.

Quite a Long Way to Go

Change cannot happen overnight. After the approval of the members of Congress, the franchise will have to go through the Senate as well.

When it passes through and gets the approval of the Senate, there will be a bicameral conference of both houses and approvals will be signed by both the Speaker of the House and the Senate President. The final signature that needs to be secured will come from the President of the Philippines.

After its publication, it becomes effective as a franchise law.

The franchise will then be submitted to the Energy Regulatory Commission for the application for the Certificate of Public Convenience and Necessity (CPCN). The CPCN is the last document needed for a formal turnover from CENECO to NEPC.

Looking forward to improved electricity distribution in Bacolod City and Central Negros through Negros Power in the near future.