Razon's Negros Power Pushes P2.1 Billion Grid Modernization

Infrastructure Push Follows 2024 Takeover

Negros Electric and Power Corp. is committing roughly P2.1 billion to upgrade transmission and distribution infrastructure across its franchise zone in Negros Occidental, two years after assuming control of the grid serving Bacolod City and five neighboring municipalities.

The utility, a joint venture between Primelectric Holdings and Central Negros Electric Cooperative, took over operations in August 2024. Since then it has deployed more than P1.2 billion on system improvements, with additional capital earmarked for substation upgrades, line replacements, and metering rollouts designed to cut technical losses and improve supply reliability.

Among the headline projects is a P79 million underground distribution system in Bacolod that will bury overhead cables along a major urban corridor. The shift is intended to reduce outage risk from typhoons and physical damage, a chronic issue in the province.

Rural Electrification and System Losses

Negros Power has allocated approximately P250 million for sitio energization, a program targeting 232 rural communities that remain either unconnected or underserved. The rollout is part of a broader push to close the access gap in upland barangays across Bago, Talisay, Silay, Murcia, and Don Salvador Benedicto, where grid penetration has historically lagged behind urban centers.

The utility also plans to replace aging lines and install advanced metering infrastructure to address system losses, which have weighed on financial performance and constrained reinvestment capacity. Industry data show that distribution utilities in the Philippines often record technical and non-technical losses above regional benchmarks, driven by equipment degradation and theft.

According to Negros Power, early results from the modernization program have improved system reliability metrics, though the company did not disclose specific uptime figures or loss-reduction targets.

Renewable Mix and Service Footprint

Negros Power currently serves more than 220,000 active accounts across its six-municipality franchise. Approximately one-third of the utility's supply comes from indigenous geothermal resources, tapping into the province's position as a hub for baseload renewable generation in the Visayas.

The geothermal share provides a degree of price stability relative to utilities dependent on coal or imported liquefied natural gas, though the company has not disclosed its full generation mix or power purchase agreement structure.

President and CEO Roel Castro has set a 2029 deadline for completing the rehabilitation and modernization program. In a statement, Castro framed the investment as a commitment to long-term service quality and affordability, though he did not specify whether tariff adjustments would be required to finance the capital program.

Capital Deployment and Franchise Economics

The scale of the investment reflects both the age of inherited infrastructure and the regulatory requirement for private distribution utilities to meet minimum service standards under their franchise agreements. The Negros Occidental grid had been managed by the electric cooperative prior to the 2024 transition, and industry observers have noted that cooperative-run systems often face capital constraints that delay necessary upgrades.

Primelectric Holdings, the investment vehicle controlled by Enrique Razon Jr., has been expanding its footprint in the Philippine power sector. Razon's portfolio spans ports, logistics, and utilities, with electricity distribution emerging as a strategic focus amid government efforts to open more franchise areas to private capital.

The Negros Power investment sits within a broader trend of conglomerate-led consolidation in Philippine distribution, as established business groups acquire cooperative-run or municipally managed grids and inject capital to modernize aging assets. Whether the model delivers sustained improvements in reliability and affordability remains a question that regulators and consumer groups continue to track closely.

The 2029 target will test the utility's execution capacity and its ability to navigate permitting, land acquisition, and community engagement in rural expansion zones. For now, the capital commitment signals confidence that the franchise can generate returns sufficient to justify the outlay, a calculus that depends on both tariff recovery and demand growth across the six-municipality service area.