WHAT does the disenfranchised Panay Electric Co. (PECO) hope to gain by constantly deprecating MORE Electric and Power Corp. (MORE Power) over power outages that the latter actually strives to minimize?
Since there is no way that PECO could recover its expired franchise and MORE Power has only just begun serving its 25-year term as electricity distributor in Iloilo City, having some people impute “inexperience” on the part of the latter would only boomerang.
Let us recall how one of them blamed MORE Power for Sunday’s 13-hour brownout in a portion of Jaro that allegedly triggered asthma and high blood pressure among unnamed power consumers.
Another suggested that MORE Power give back the distribution utility to “tunay nga tag-iya” (the real owner).
But PECO could not own a franchise that is “perishable” by nature. Thus, Section 10 of Republic Act 11212 specifically authorized the succeeding franchisee to take possession of all power distribution assets in Iloilo City.
PECO had been the sole power distributor in this city for over nine decades. But plagued with mounting complaints from dissatisfied consumers over erroneous billings, poor customer service, overcharging, fire-prone leaning poles, “spaghetti” wirings, wrong readings and power pilferage leading to system’s loss chargeable to paying subscribers, it failed to secure a new or extended franchise from Congress.
There is obviously no “forever” for a 25-year franchisee. Since it is a monopolistic service provider, its renewal or non-renewal would have to be acceptable to service receivers. Bereft of that acceptability, it loses moral ground to ask for a renewal.
Disgruntled consumers who had repeatedly called for the termination of PECO’s legislative franchise are vindicated by Congress’ refusal to renew it, resulting in its expiration on Jan. 19, 2019.
It paved the way for MORE Power to apply for the sole franchise and got it by operation of law (RA 11212) through the expropriation of usable facilities of the distribution utility. That expropriation grant required MORE Power to pay PECO a “just compensation” of P482 million (rounded off), subject to the approval of the presiding judge.
Clearly then, MORE Power’s first order of business is to rehabilitate the aging and near-obsolete substations, feeders, transformers, poles, and billing meters, among other facilities.
When MORE Power took over the whole operation of the distribution system, it had already absorbed PECO’s resigned technical men for the herculean rehabilitation of overused equipment. Needless to say, it was they who recommended the necessity of trouble-shooting and replacement of parts.
They revealed that the major “surgery” on substation 2 was overdue. It had not been overhauled for more than six years. It needed not just change of oil, but also of worn-out spare parts, some of which had to be imported.
The management then made the announcement that it had no alternative but shut off the Jaro substation on Sunday (May 17) for the day-long emergency work.
PECO’s claim that it had ordered and paid for a mobile substation that should have been installed in March had MORE Power not taken over by court order does not make sense. The company’s incorporators had known by then that their exit was overdue.
How could PECO managers attribute “lack of expertise” to linemen and mechanics who used to be their own employees? That would be like saying they themselves had hired the wrong workhorses!
No amount of expertise could modernize an outdated system. The new franchisee would have to gradually “level up” in accordance with the expectation of Mayor Jerry P. Treñas. (hvego31@gmail.com/PN)
