Business group backs Socoteco 2-Ignite Power deal
The proposed partnership between Ignite Power and South Cotabato II Electric Cooperative should push through but with strong safeguards in place to protect consumers, according to a business group.
The General Santos City Chamber of Commerce and Industry has expressed support for the proposed partnership between Ignite Power and South Cotabato II Electric Cooperative (Socoteco 2), but with strict safeguards to protect consumers. The cooperative's management and member-consumer-owners (MCOs) must be fully protected under the proposed deal. The chamber emphasized key principles such as reliable power supply, affordable electricity rates, good governance, accountability, and full transparency, among others.
The chamber acknowledged that Socoteco 2's challenges have made it difficult for it to continue operating as a distribution utility. To address these issues, the proposed agreement must include commitments for Ignite Power, a joint venture between Razon-led Primelectric Holdings and Manny Pacquiao’s MP Holdings, to rehabilitate the cooperative's aging infrastructure, reducing system losses to a more manageable 5.5 percent.
The chamber stressed the need for safeguards to prevent sudden power rate increases, with any tariff adjustments requiring compliance with the rules set by the Energy Regulatory Commission and subject to public oversight. Measurable performance standards, including targets for power reliability, service quality, and customer responsiveness, should also be established.
Finally, the chamber urged the protection of Socoteco 2's 30-percent stake in the partnership, with anti-dilution provisions to safeguard the cooperative's board representation and voting rights.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
