The legal roadblock has been removed, but the biggest decision is still ahead: nearly 200,000 SOCOTECO II member-consumer-owners will ultimately decide whether the controversial power partnership moves forward.
The proposed SOCOTECO II–IGNITE Power joint venture is back on track after a South Cotabato court dissolved the temporary restraining order (TRO) that had halted the cooperative’s plebiscite.
In a 12-page resolution dated September 11, 2026, Regional Trial Court Branch 62 in Polomolok granted South Cotabato II Electric Cooperative’s request to dissolve the TRO and rejected member-consumer-owner Eugenio Mangilaya’s request for a writ of preliminary injunction.
The ruling clears the immediate legal obstacle to a vote on SOCOTECO II’s proposed Conditional Joint Venture Agreement (CJVA) with IGNITE Power and Energy Holdings Inc.
But the court’s decision does not approve the joint venture itself.
Instead, it allows the cooperative’s member-consumer-owners to decide its fate through the plebiscite.
Court: Claims Were Not Enough to Justify an Injunction
The legal dispute centered partly on allegations that SOCOTECO II’s board was not sufficiently transparent when it approved the proposed joint venture.
Mangilaya argued that members were not properly furnished copies of the board resolution and CJVA and questioned aspects of how the plebiscite was being conducted.
The court, however, ruled that the allegations did not establish the requirements necessary for a preliminary injunction.
The judge characterized the claims as speculative and said the proposed JVA remained conditional, with another stage still required before it could become final.
The court also said Mangilaya could still pursue his main case seeking possible nullification of the plebiscite and CJVA, as well as damages, if irregularities are eventually established.
That distinction is important: the court did not declare that every issue surrounding the proposed deal had been settled. It ruled that the evidence presented did not justify keeping the plebiscite suspended.
Voting Will Not Resume This Weekend
Although the TRO has been lifted, SOCOTECO II said it will not conduct voting on September 12–13 because there was not enough time to prepare following the court ruling.
The remaining scheduled voting dates are:
- September 19–20
- September 26–27
The original plebiscite calendar covered four weekends in September. The first voting dates, September 5–6, were halted after the court initially issued a 72-hour TRO on September 4.
SOCOTECO II’s official materials had originally listed all four weekends as voting dates.
Nearly 200,000 Member-Owners Could Decide the Deal
The proposed agreement affects one of Mindanao’s major electric cooperatives, which serves General Santos City, Sarangani and parts of South Cotabato.
SOCOTECO II has said roughly 200,000 member-consumer-owners (MCOs) are expected to participate in the plebiscite.
For the proposed partnership to move forward, the required majority is 50% plus one of qualified MCOs, according to previous reports on the plebiscite requirements.
That means the upcoming vote could become one of the most consequential decisions in the cooperative’s history.
What Is the IGNITE Power Deal?
IGNITE Power is backed by Primelectric Holdings Inc., associated with businessman Enrique Razon Jr., and MP Holdings, associated with Manny Pacquiao.
Under the proposed Conditional Joint Venture Agreement, IGNITE would acquire SOCOTECO II’s distribution assets, with 70% of the consideration to be paid in cash and 30% converted into SOCOTECO II equity in the proposed new distribution company.
The proposal is being presented as a way to inject private capital and technical expertise into SOCOTECO II’s aging power-distribution system.
IGNITE has outlined a five-year modernization program involving infrastructure rehabilitation, equipment upgrades, improved reliability and efforts to reduce system losses.
Why Supporters Say the Deal Is Needed
SOCOTECO II has been dealing with serious financial and operational difficulties.
The cooperative has reported accumulated losses of around ₱2.1 billion as of December 2025, while system losses have approached 14%, with losses estimated at more than ₱40 million a month, according to reports citing cooperative officials.
IGNITE says its proposed modernization program could help address aging infrastructure, improve reliability and bring system-loss charges passed on to consumers down to 5.5%.
The company has also said it intends to put up initial capital for improvements before seeking regulatory approval for cost recovery.
But Opposition Has Not Disappeared
The court victory does not mean the controversy surrounding the deal is over.
Critics have raised questions about the transparency of the agreement, the process by which it was approved and the implications of bringing a private-sector partner into the cooperative’s distribution operations.
A House resolution filed by General Santos City Rep. Shirlyn Bañas-Nograles has also sought a congressional inquiry into the proposed partnership and the selection of IGNITE as the private-sector partner.
Importantly, the congressional initiative does not itself establish wrongdoing in the proposed transaction.
Meanwhile, supporters argue that SOCOTECO II urgently needs the capital and technical capability that a private partner could provide.
Thousands of MCOs also gathered in General Santos City and Polomolok on September 11 in support of the proposed partnership, according to reports citing organizers.
The July Vote That Started the Road to the Plebiscite
Before the September plebiscite, about 32,000 MCOs endorsed the proposed CJVA on July 25, according to GMA News.
That earlier endorsement was not the final plebiscite decision. The September vote is intended to determine whether the proposed partnership can proceed under the applicable requirements.
The Bigger Question: Can the Deal Fix SOCOTECO II Without Hurting Consumers?
This is ultimately what makes the upcoming plebiscite so important.
Supporters see the partnership as a potential lifeline for a cooperative facing billions of pesos in accumulated losses, aging infrastructure and high system losses.
Opponents and critics want greater scrutiny of the agreement and its long-term consequences for the cooperative and its consumers.
For ordinary electricity users, however, the question may be much simpler:
Will the deal deliver more reliable electricity and lower system losses — and what will it ultimately mean for their power bills?
The court has now cleared the legal obstacle preventing the vote.
The final decision is moving back to the people who own the cooperative.
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