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Ignite Power, the energy partnership between businessman Enrique Razon Jr.’s Primelectric Holdings Inc. and boxing icon Manny Pacquiao’s MP Holdings, said no formal negotiations are currently underway for a proposed joint venture involving South Cotabato II Electric Cooperative Inc. (SOCOTECO II).
Ignite Power clarified in a statement that while SOCOTECO II’s board had reportedly expressed an “initial acceptance” of the proposal, no binding agreement or formal negotiation process has taken place. This clarification comes as public debate over the future ownership and management of the power distributor grows.
“There are no negotiations at all, and the most that we heard from the board of directors of SOCOTECO II was an initial acceptance of the offer,” Ignite Power legal officer, Atty. Allana Mae Babayen-on said. “Nothing has been accepted. Nothing has been negotiated.”
Membership Approval Required
Ignite Power emphasized that any eventual joint venture would require the approval of the cooperative’s approximately 300,000 member-consumer-owners (MCOs), not just its board of directors.
Under Presidential Decree No. 269, electric cooperatives entering into joint ventures must secure the approval of a qualified majority, or 50 percent plus one, of all active member-consumer-owners through a referendum.
“It’s not the board of directors, it’s not some of the members, it’s the total MCOs,” Babayen-on said. “So that’s the 300,000 MCOs that we wanted to ask to decide.”
The company said the referendum requirement is central to ensuring grassroots legitimacy for any proposed restructuring or partnership involving the utility.
Improved Service Sought
SOCOTECO II serves General Santos City and Sarangani province, areas that have experienced persistent concerns over power reliability and infrastructure limitations in recent years.
Despite criticism surrounding the cooperative’s operations, Ignite Power rejected claims that SOCOTECO II should be considered an “ailing” electric cooperative under Philippine law.
Babayen-on said the utility remains functional despite facing operational difficulties. She noted that if SOCOTECO II were legally classified as ailing, the National Electrification Administration could be compelled to intervene directly, potentially affecting the viability of private sector participation.
The company maintained that its proposal aims to help stabilize operations, improve service delivery, and lower electricity costs for consumers.
Ownership Concerns
In response to the ongoing debates, consumer groups in Mindanao voiced concerns over broader privatization proposals tied to the cooperative.
The Alliance of Consumers in the Electricity Sector (ACES) of Mindanao warned against plans that could convert SOCOTECO II into a stock corporation structure involving private investors.
According to ACES, one proposal would restructure the cooperative into a corporate entity where Manila Electric Company (Meralco) would hold a 70-percent stake, while the remaining 30 percent would be opened to public investors.
The coalition, which represents vendors, indigenous peoples, transport groups, religious organizations, media workers, and youth sectors, said the shift could fundamentally alter the ownership model traditionally governing electric cooperatives.
“Those unable to participate in share ownership risk being relegated from co-owners to ordinary ratepayers with diminished influence over the utility’s direction,” ACES said in a statement.
The group acknowledged the operational challenges facing SOCOTECO II, including the need for infrastructure upgrades and improved service reliability, but argued that reforms should not come at the expense of cooperative ownership and consumer participation.
The debate reflects a wider national trend of increasing private sector involvement in provincial power distribution systems, particularly in areas where electric cooperatives have struggled with financial and operational pressures.
Ignite Power, for its part, said its proposal is anchored on the principle that electricity should be treated as a basic human right rather than merely a commercial commodity.
Source:
https://mb.com.ph/2026/04/30/razon-pacquiao-group-no-deal-yet-between-ignite-power-socoteco-ii
https://tribune.net.ph/2026/04/30/south-cotabato-coop-jv-awaits-consumers-ok
https://business.inquirer.net/588375/meralco-proposal-for-socoteco-ii-faces-resistance
