ILOILO City – The House of Representatives has approved on third and final reading the franchise application of More Electric and Power Corporation (More Power) to distribute electricity in this city. But Panay Electric Company (PECO), the sole power distributor here for nearly a century, is unfazed.
“It’s not over until it’s over. The concurrence of the Senate is also needed and most important of all is the approval of the President,” said Engineer Randy Pastolero, PECO vice president for operations.
PECO’s franchise is expiring on January 2019 but it has applied for a 25-year extension. Its application remains pending at the House committee on legislative franchises.
“Samtang wala pa mapirmahan sang Presidente, indi pa ina layi,” said Pastolero of this latest development in the Lower House favorable to its rival More Power. “There is no new franchise to talk about yet.”
He expressed confidence PECO won’t be abruptly booted out. “The rule is kun wala may mabulos, ang daan ang ma-maintain or masige,” he stressed.
Pastolero previously said More Power needed considerable time, perhaps more than a year, to set up its own facilities such as power lines and power substations, and even power supply contracts.
Regarding PECO’s application for franchise extension, Pastolero said the House Committee on Legislative Franchises chaired by Cong. Francis Josef Alvarez asked the company to submit a status report on the complaints of consumers.
Alvarez was quoted to have said, “The committee, after a careful deliberation, decided that we cannot tolerate continued abuse of the congressional franchise as shown by PECO’s failure to protect the interest of consumers.”
The committee chairperson cited Iloilo City’s Sangguniang Panlungsod resolution calling for the denial of PECO’s application for franchise extension “and the tons of complaints that the Energy Regulatory Commission (ERC) has received from Iloilo residents on over-billing and inefficient service.”
Pastolero said PECO will be submitting to the committee a status report of the consumers’ complaints.
“Majority of these complaints were dismissed by ERC,” he said, because PECO and the complaining consumers already came to an agreement or settlement. “Very few na gid lang ang waay na resolbar.”
The next committee hearing on PECO’s application for franchise extension is this November, said Pastolero.
“If consumers’ complaints are the sole gauge as to whether or not a distribution franchise should continue, then wala sang may mabilin nga franchise holder sina because ang complaints ara gid ina ‘ya. Even Meralco has thousands of that,” he stressed.
While More Power may have the technical capability and financial capability, Pastolero said its does not have the facilities.
During a hearing of the Lower House’s committee on legislative franchises for More Power’s franchise application, the company admitted it needed at least a year to set up its facilities.
Pastolero reiterated that PECO won’t sell its assets to More Power.
“If More Power needs at least a year to set up its facilities assuming it manages to secure a franchise and PECO fails to secure a franchise extension, what will happen to Iloilo City,” asked Pastolero.
But in a recent press conference, More Power president Roel Castro assured Ilonggos his company would be efficient in distributing electricity even if it is a new industry player.
“Running an electric utility is not so much a specialized job or skill as we may think. What I am trying to emphasize is maraming talents out there. It is not as if it’s too specialized that you really have to go out and look for them,” he said.
The Private Electric Power Operators Association (PEPOA) warned of a power crisis in this city if the franchise application will be given to More Power.
The franchise to distribute electricity must not be given to a company that has no distribution system and would have to build one from scratch, it told the Lower House’s committee on legislative franchises.
It would be wiser if PECO is allowed to extend its franchise, according to PEPOA in a letter to the committee./PN
