HAS Panay Electric Co. (PECO) found a formula to keep itself empowered as electricity distributor in Iloilo City?
The unfortunate reality that confounds residents of Iloilo City is that while PECO’s franchise as electricity distributor expired on Jan. 19, 2019 yet, it has not given way to the new franchisee, MORE Electric and Power Corp. (MORE Power).
PECO remains in service by authority of the Energy Regulatory Commission (ERC) that has granted it a temporary certificate of public convenience and necessity (CPCN).
MORE Power’s takeover could have been as easy as “ABC” had PECO passed the power torch to the former in accordance with law (Republic Act 11212) as passed by Congress and approved by President Rodrigo Duterte.
One recalls that PECO failed to renew its franchise in the wake of customers’ complaints over its inefficiency, overbilling and poor public relations.
The natural course of transition should have been for both companies to negotiate on the law’s provisions aimed at a smooth transition of responsibility from one company to another. Two provisions are vital in justifying expropriation or the “right of eminent domain” or “the power of the state to forcibly take private property for public use upon payment of just compensation.”
Section 10 of RA 11212 says: “The grantee may acquire such private property as is actually necessary for the realization of the purposes for which this franchise is granted, including but not limited to poles, wires, cables, transformers…Provided, that proper expropriation proceedings shall have been instituted and just compensation paid.”
Second, Section 17 specifies, “Panay Electric Co. (PECO) shall in the interim be authorized to operate the existing distribution system within the franchise area…until the establishment or acquisition by the grantee of its own distribution system and its complete transition towards full operations as determined by the ERC.”
But, alas, these are the same provisions that PECO has exploited for being “unconstitutional,” citing Article 3, Section 1, of the Philippine Constitution: “No person shall be deprived of life, liberty or property without due process of law nor shall any person be denied the equal protection of the laws.”
PECO has raised that matter before Judge Monique Quisumbing Ignacio of the Regional Trial Court of Mandaluyong City (RTC Branch 209) claiming that its main office is at 835 Harvard St., Wack-Wack Village, Mandaluyong City – a residential village. People know PECO’s office is on General Luna Street, Iloilo City.
The Mandaluyong RTC has ruled in favor of PECO.
But MORE Power has no problem with that, believing that only the Supreme Court can rule with finality on whether a law is constitutional or not.
What MORE awaits is the resolution of a pending petition before Judge Daniel Antonio Gerardo Amular RTC-Iloilo (Branch 35) for issuance of writ of possession authorizing “just compensation” that MORE Power is willing to pay PECO – P481,842,450, based on PECO’s declared value of its assets – in exchange for expropriation.
Section 9 of RA 11212 clarifies, “Private property shall not be taken for public use without just compensation.” This constitutional provision jibes with the “just compensation” stated in Section 10 of RA 11212.
Since it has already been eight months since its franchise expired, PECO must be clinging to the possibility that, no matter how remote, it could delay expropriation beyond 24 months or two years.
Under Section 11 of RA 11212 MORE Power is given only two years to take over. Otherwise, its franchise would be revoked, allowing PECO to re-apply for a fresh franchisee.
Let the Court decide. (hvego31@gmail.com/PN)
