Gensan Business Group Backs SOCOTECO II-IGNITE Power Joint Venture

A group of businesses and entrepreneurs in General Santos City is backing the proposed joint venture between South Cotabato II Electric Cooperative (SOCOTECO II) and Razon-Pacquaio-led IGNITE Power and Energy Holdings Inc. In a statement, the General Santos Chamber of Commerce and Industry said the joint venture could address SOCOTECO II’s operational challenges, financial losses and aging infrastructure, while stressing that the proposed arrangement must protect the rights and economic interests of its member-consumer-owners (MCOs). Last Friday, the South Cotabato Regional Trial Court (RTC) Branch 62 lifted the temporary restraining order (TRO) that halted the plebiscite on the partnership deal between SOCOTII and IGNITE Power. The proposed partnership between SOCOTECO II and IGNITE Power seeks to reduce the system loss charges passed on to consumers to 5.5%. It was set to be voted on by MCOs this September in line with directives from the National Electrification Administration (NEA). “SOCOTECO II’s Board of Directors already made this abundantly clear, and has chosen IGNITE Power and Energy Holdings, Inc. or IGNITE to be its joint venture partner,” the Gensan chamber said. “The Gensan Chamber does not oppose modernization or strategic partnerships per se; we strongly advocate for solutions that fix our energy infrastructure while respecting the legal and economic rights of the MCOs (member-consumer-owners). Reliable power supply; affordable electricity rates; good governance, accountability, and operational integrity; equity protection and ownership rights of the cooperative; and full transparency and informed consent of the MCOs are the bedrock and non-negotiable principles upon which we stand in connection with the proposed conditional joint agreement,” it added. SOCOTECO II had expected some 200,000 MCOs to vote in a plebiscite, which would have decided if the cooperative's deal with Ignite Power should push through. IGNITE Power is a partnership between Razon-led Primelectric Holdings Inc. and Manny Pacquiao's MP Holdings. Last July 25, some 32,000 MCOs endorsed the proposed Conditional Joint Venture Agreement between the two parties. The proposed joint venture with IGNITE Power comes as SOCOTECO II continues to confront financial and operational challenges. The electric cooperative said it has reported consecutive annual financial losses totaling P2.1 billion as of December 2025, increasing system losses to 14%, which causes P40 million in monthly losses, aging distribution facilities, and the need for substantial capital investments to rehabilitate and expand its network.—LDF, GMA News