Razon Group poised for power expansion in Mindanao

MANILA, Philippines — Tycoon Enrique Razon Jr. is all set to expand his power distribution business in Mindanao after consumers backed his proposed deal with South Cotabato II Electric Cooperative (Socoteco 2).

In four rounds of voting held from September to October, a total of 137,978 member-consumer-owners voted in favor of the conditional joint venture agreement between Razon-led Ignite Power and Socoteco 2.

The affirmative votes accounted for 60.91 percent of eligible voters, while nearly 5,000 voted against the deal.

Ignite Power, a joint venture between Razon’s Primelectric Holdings and boxing icon Manny Pacquiao’s MP Holdings, is proposing investments to rehabilitate Socoteco 2’s aging power distribution network.

Primelectric president and CEO Roel Castro welcomed the strong backing from Socoteco 2 consumers, while acknowledging the responsibility that comes with the results.

“Their vote gives us the opportunity to move forward with the work of modernizing Socoteco 2’s distribution system and improving the reliability of electricity services for the communities it serves,” Castro said.

The cooperative serves consumers in parts of South Cotabato, Sarangani and General Santos City.

Castro said Ignite Power’s priority is to build a “more reliable and efficient distribution system” across Socoteco 2’s franchise area.

“This means improving customer care and services, investing in critical infrastructure, improving operational efficiency and strengthening the system’s capacity to serve households, businesses and industries,” he said.

The proposed joint venture includes a modernization program aimed at reducing system losses to 5.5 percent from 8.25 percent. It also provides for a 30-percent profit share for the cooperative.

System loss refers to electricity lost before it reaches consumers, with the cost currently recovered through a line item on power bills.

“The real measure of this partnership will be the improvements consumers experience over time: a stronger distribution network, more reliable electricity and an electric utility better equipped to support the region’s growth,” Castro said.