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Ignite Power and Energy Holdings Inc. has secured member-consumer approval for its proposed joint venture with South Cotabato II Electric Cooperative Inc. (Socoteco II), clearing a key hurdle in its plan to modernize electricity distribution in General Santos City, Sarangani, and parts of South Cotabato.
The cooperative’s Overall Plebiscite Committee proclaimed the final results on Sunday after four rounds of voting conducted between September and October, with 137,978 member-consumer-owners (MCOs) voting in favor of the conditional joint venture agreement (JVA) and 4,811 opposing it.
The affirmative votes accounted for 60.91% of the 226,534 eligible voters on the final master list. A total of 142,789 valid votes were cast.
Acquisition Of Distribution Assets
The approval paves the way for Ignite Power, a subsidiary of Primelectric Holdings Inc., to pursue the proposed partnership aimed at addressing Socoteco II’s longstanding financial and operational challenges while strengthening electricity services in its franchise area.
The next steps include completing regulatory filings and finalizing the structure for transferring the cooperative’s distribution assets, which would enable the planned capital expenditure program to proceed.
Under the proposed agreement, Ignite Power would acquire Socoteco II’s distribution assets, with 70% of the payment to be made in cash and the remaining 30% converted into an equity stake for the cooperative in the new distribution company.
The arrangement would allow Socoteco II to retain a financial interest in the distribution business while bringing in fresh capital for infrastructure improvements and operational upgrades.
Reducing System Losses
A central target of the partnership is to reduce Socoteco II’s system losses from its current recoverable cap of 8.25% to 5.5%, a move intended to improve distribution efficiency and reduce the system-loss charge passed on to consumers.
System losses refer to electricity lost through technical inefficiencies or unmetered consumption before it is billed to end-users. Lower losses could help improve the utility’s operating performance, although the actual impact on consumer bills would depend on implementation and applicable regulatory rules.
Ignite Power plans to invest in critical distribution infrastructure, introduce operational efficiency programs, and strengthen the network’s capacity to serve households, commercial establishments, and industries.
Primelectric President and Chief Executive Officer Roel Z. Castro said the plebiscite result would allow the company to proceed with its modernization plans.
“We welcome the results of the plebiscite and thank the member-consumer-owners who participated in this important decision. Their vote gives us the opportunity to move forward with the work of modernizing SOCOTECO II’s distribution system and improving the reliability of electricity services for the communities it serves,” Castro said in a statement.
Expected Improvements
Castro said the company’s priorities include improving customer care, investing in critical infrastructure, and strengthening operational efficiency to keep pace with growing electricity demand in the region.
The proposed partnership comes as businesses in Socoteco II’s franchise area raise concerns over the reliability of electricity supply and the condition of existing distribution facilities.
Business groups, including the General Santos City Chamber of Commerce and Industry, have backed the agreement, warning that unstable power could disrupt manufacturing operations, discourage investments, and threaten job creation.
The concerns have gained importance amid potential supply pressures associated with El Niño, which could put additional strain on electricity availability and regional economic activity.
For General Santos City, a major commercial center in southern Mindanao, dependable power distribution is important to sustaining industrial operations and supporting new investments. The proposed venture is intended to strengthen the local distribution network as electricity requirements increase across households and businesses.
Expanding Primelectric’s Footprint
The Socoteco II agreement would extend Primelectric’s presence in the electricity distribution sector, where it already oversees distribution system upgrades through other utility operations.
These include MORE Electric and Power Corp. in Iloilo City, Negros Electric and Power Corp. in Bacolod City, and Bohol Light Company Inc. in Tagbilaran City.
Ignite Power is a partnership between Primelectric Holdings, led by businessman Enrique Razon, and Manny Pacquiao’s MP Holdings. The Socoteco II venture would give the group a larger foothold in Mindanao’s power distribution market.
The planned investment is expected to provide the cooperative with funding for infrastructure improvements and operational reforms. However, the extent of the benefits will depend on the execution of the modernization program and the resulting improvements in service quality.
With the plebiscite completed, the parties must still meet the remaining regulatory requirements and finalize the asset transfer arrangements before implementation can begin.
The vote establishes member-consumer support for the proposed partnership, but its longer-term success will be measured by whether it delivers a more reliable distribution network, improved operational performance, and better service for consumers across Socoteco II’s franchise area.
Source:
https://mb.com.ph/2026/10/20/socoteco-ii-voters-approve-primelectric-jv-to-overhaul-grid
https://tribune.net.ph/2026/10/19/ignite-power-eyes-mindanao-expansion-after-socoteco-ii-vote
