Negros Power pursues P2.1-B modernization program
Negros Electric and Power Corp. (NEPC), backed by billionaire Enrique Razon Jr., is spending P2.1 billion to strengthen its distribution network, including trimming system losses, without imposing higher rates on consumers.
The company is a joint venture between Primelectric Holdings Inc. and Central Negros Electric Cooperative. It serves over 220,000 active accounts across Bacolod, Bago, Talisay, Silay, Murcia and Don Salvador Benedicto.
Since sealing the partnership two years ago, Negros Power has already funded projects worth P1.2 billion.
The firm said its major projects include the P79-million Lacson Street Underground Distribution System in Bacolod, which replaces overhead lines with an underground network.
About P250 million was also allotted to deliver electricity to 232 underserved rural communities.
The initial investments were also tapped for the replacement of deteriorating lines, substation upgrades and modern meters.
“[We have seen improvements in] system reliability, including efforts to eliminate insulator failures and reduce feeder losses, as early indicators of the modernization program’s impact,” Negros Power said in a statement.
These efforts also helped Negros Power reduce its system losses, although no figures on this was provided.
System loss is the difference between electricity entering a distribution network and the amount eventually billed to customers.
It covers technical losses caused by resistance in power lines, transformers and aging equipment, and nontechnical losses from electricity theft, illegal connections, defective meters and billing errors.
In his state of the nation address last month, President Marcos called for the removal of these charges that are being passed on to consumers.
To help power cooperatives, the Department of Energy said the National Electrification Administration could extend loans for upgrading of facilities, or approach financial institutions.
