TRO vs Razon–led firm and CENECO denied

MANILA, Philippines — A Bacolod regional trial court has denied a petition to stop the proposed joint venture agreement between the Central Negros Electric Cooperative (CENECO) and Primelectric Holdings Inc., an affiliate of Enrique Razon-led MORE Electric and Power Corp.

In an order dated June 22, Judge Maria Lina Gonzaga of the Bacolod Regional Trial Court Branch 42 denied the application for the issuance of a temporary restraining order (TRO) “for non-compliance with the specific provision of the law.”

A petition was earlier filed by representatives of the Negros Consumers Watch and Convenors of CENECO Anti JVA Coalition, which sought for the declaration of nullity of the joint venture agreement with an application for issuance of a preliminary injunction and TRO.

Primelectric signed on June 3 a joint venture agreement with CENECO to improve power supply and distribution services to the latter’s over 200,000 consumers.

The ratification of the signed agreement of the member-consumers through the three weekends plebiscite has commenced on June 24.

Based on the guidelines of the National Electrification Administration, it needs to get a majority of yes votes for the joint venture agreement to push through.

MORE Power president and CEO Roel Castro earlier said the company is set to invest P4 billion to improve the electric power distribution system within CENECO’s franchise area under their joint venture.

Castro said P2 billion would initially be used for the asset purchase and working capital.

“That is just to start. Over and above that, we are ready with another P2 billion to start the capex program. There is another P2 billion that we are readying for capex starting day one,” Castro said.

Castro said the capex would be used to modernize and improve the electric power distribution system within CENECO’s franchise area.

MORE Power intends to leverage on its experience and expertise in improving services in Iloilo City as its electric distribution utility.

“With Iloilo, we increased by 40 percent the capacity, the service improved, and there are less interruptions and brownouts,” Castro said.

MORE Power in 2020 took control of the Iloilo City distribution assets of Panay Electric Co.