Meralco, Ignite Power Present Competing Proposals for SOCOTECO II

 

GENERAL SANTOS CITY – Two major players have presented competing proposals for the future of SOCOTECO II, sparking debate over which path would best serve consumers in GenSan, Sarangani and parts of South Cotabato.

Meralco, the country’s largest power distributor with 124 years of experience, has offered an equity investment to strengthen SOCOTECO II without dismantling it.

Under this plan, SOCOTECO II would remain the distribution utility, converted from a cooperative into a stock corporation.

Member-Consumer-Owners (MCOs) would become stockholders, ensuring ownership and dividends, while employees would retain their tenure, pay, and benefits.

Meralco emphasized that all assets and operations would remain under SOCOTECO II’s control, with the company providing capital, technology, and expertise to modernize systems.

In contrast, Ignite Power & Energy Corp. – a joint venture between Enrique Razon’s Primelectric Holdings and former Senator Manny Pacquiao’s MP Holdings – has proposed a joint venture that would dissolve SOCOTECO II and replace it with the More South Cotabato Electric and Power Company (MSCEPC).

Under this scheme, MSCEPC would purchase all of SOCOTECO II’s distribution assets, including substations, power lines, and equipment.

Ignite Power would hold a 70 percent stake, while SOCOTECO II would retain 30 percent.

Employees would be terminated with separation pay, with rehiring subject to qualifications. Member-consumers would receive dividends only after liabilities and separation costs are settled.

The contrast between the two offers is stark: Meralco’s plan preserves SOCOTECO II’s identity and assets, while Ignite Power’s proposal replaces it entirely with a new entity.

Governance structures also differ, with Meralco’s board representation tied to equity investment, while Ignite Power guarantees at least two board seats.

Consumer groups, including the Bantay Kuryente Movement, have urged transparency, accountability, and competitive bidding in evaluating these proposals, stressing that MCOs must remain central in decision-making.

They also emphasized that any proposals from private companies should be disclosed to the public, ensuring that MCOs are fully informed before making decisions.

Under Philippine cooperative and rural electrification laws, MCOs are recognized as co-owners of electric cooperatives.

These cooperatives operate as member-owned, non-profit utilities, making transparency and participation essential to their governance.

###