ILOILO City – The Supreme Court (SC) has upheld the franchise expansion of MORE Electric and Power Corporation (MORE Power) in Iloilo Province, solidifying its authority to operate in its newly expanded franchise area.
In a landmark decision promulgated on July 30, 2024, and published on January 15, 2025, the SC En Banc ruled that electric cooperatives do not hold a constitutional right to exclusive franchises within their respective coverage areas.
The ruling, penned by Associate Justice Rodil Zalameda, dismissed the petition filed by Iloilo Electric Cooperative, Inc. I, II, and III (ILECOs) challenging the constitutionality of Republic Act No. 11918.
This law extended MORE Power’s franchise beyond Iloilo City to include 15 municipalities and the component city of Passi, areas previously under ILECO’s exclusive coverage.
The SC emphasized that public utilities must prioritize public interest, noting that competition can improve services and reduce electricity costs.
It cited Section 11, Article XII of the Constitution, which prohibits exclusive franchises, stating that franchises are privileges granted by the state and must serve the common good as determined by Congress.
The decision also aligns with the Electric Power Industry Reform Act (EPIRA), which encourages competition in the electricity industry.
The SC noted that allowing MORE Power’s entry benefits consumers by offering a choice and avoiding monopolistic pricing, even before the three ILECOs’ franchises expire in 2029, 2039, and 2053.
MORE Power president and chief executive officer Roel Castro ealier said that the company’s expansion plans were already in motion prior to the passage of RA 11918.
According to Castro, MORE Power extended primary lines to the boundary of Iloilo City and Pavia, a jump-off point for their expansion.
The company plans to use the Megaworld substation in Mandurriao district as the main supply point for Pavia due to its proximity.
Castro projected the expansion would take four to five years to complete, with an initial investment of P2 billion to P2.5 billion.
He also expressed willingness to collaborate with the ILECOs for the benefit of consumers, allowing them to choose their preferred power distribution utility.
For his part, former senator Franklin Drilon, an Ilonggo, welcomed the SC decision. He described as “for the greater good.”
Drilon also lauded MORE Power for its pioneering efforts to revise the regulatory environment in the power distribution sector.
ILECOs I, II, and III initially filed a petition for certiorari and prohibition with a prayer for a temporary restraining order and writ of preliminary injunction. They claimed that Section 1 of RA 11918 violated their rights to exclusive franchises, due process, non-impairment of contracts, and equal protection.
The SC rejected these arguments, reaffirming that public utilities must yield to serve the common good.
“Without competition, ILECOs can easily dictate the price of electricity. Allowing the entry of another player thus benefits consumers, who no longer have to wait until ILECOs’ franchises expire,” the SC ruled,
With this ruling, MORE Power can now expand its operations to serve Alimodian, Anilao, Banate, Barotac Nuevo, Dingle, Dueñas, Dumangas, Leganes, Leon, New Lucena, Pavia, San Enrique, San Miguel, Santa Barbara, Zarraga, and Passi City./PN
