Razon Group poised for power expansion in Mindanao

Enrique Razon Jr., a tycoon, is preparing to expand his power distribution business in Mindanao after consumers endorsed a proposed deal with South Cotabato II Electric Cooperative (Socoteco 2). In four voting rounds from September to October, 137,978 member-consumer-owners approved the conditional joint venture agreement between Razon's Ignite Power and Socoteco 2.

The agreement was opposed by about 5,000 voters. Ignite Power, a joint venture between Razon's Primelectric Holdings and boxing legend Manny Pacquiao's MP Holdings, plans to invest in rehabilitating Socoteco 2's outdated power distribution network. Primelectric's CEO Roel Castro expressed appreciation for the strong consumer support and emphasized the responsibility that comes with this decision.

Castro stated that the joint venture aims to modernize Socoteco 2's distribution system, enhance electricity reliability, and improve service quality for the communities it serves. The company's primary focus is on building a more efficient distribution system, investing in critical infrastructure, boosting operational efficiency, and expanding capacity to serve households, businesses, and industries.

The deal also includes a 30-percent profit share for the cooperative. System losses, which currently stand at 8.25 percent, will be reduced to 5.5 percent under the proposed modernization program. The true test of this partnership will be the improvements consumers experience, such as a stronger distribution network, more reliable electricity, and a utility better equipped to support regional growth.