ILOILO City – Panay Electric Company (PECO) has resigned itself to the fact that More Electric and Power Corp. (MORE Power) now has a legitimate franchise to distribute power in this city signed by President Rodrigo Duterte. However, according to PECO, there is no agreement yet between it and MORE Power, “therefore MORE should not unconstitutionally confiscate PECO’s assets.”
PECO monopolized power distribution here for over nine decades.
“MORE can now put up its own power distribution facilities,” PECO said in a statement, “for the good of all Ilonggos.”
It stressed that “taking of private property without a valid sale wherein the two parties are in agreement goes against Section 1, Article 3 of the Philippine Constitution wherein 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’s franchise expired on Jan. 19, 2019. It sought to renew it but its application did not gain traction in the House of Representatives’ committee on legislative franchises. The Energy Regulatory Commission, however, allowed PECO to continue operating by virtue of a certificate of public convenience and necessity (CPCN) which remains valid until May 25.
According to PECO, MORE Power is a new player in the power distribution industry and has no experience in it; thus it is wise that PECO has been allowed to continue operating.
But should MORE Power pursue the expropriation of PECO’s assets, PECO said it would exhaust all legal remedies to protect its rights under the Constitution.
PECO also said if it eventually becomes unsuccessful to renew its franchise in the current Congress, it would apply for a renewal of franchise in the next Congress after the May 2019 midterm elections.
“PECO still abides by its promise to all Ilonggos that it will not abandon Iloilo City,” it added.
Ilonggo senator Franklin Drilon urged PECO last week to work out a smooth transition of power distribution – which would include the turnover of facilities – with MORE Power.
Drilon blamed a recent power interruption in the city – during the inauguration of the Museum of Philippine Economic History on Feb. 11 on JM Basa and Ortiz streets – to PECO’s “lack of investment in capital equipment.”
“If we have such poor service and poor power distribution, you can never move Iloilo City forward. Everything is affected,” said Drilon.
He appealed to the Cacho family, majority owner of PECO, to start negotiating with MORE Power for a fair deal over its power distribution assets – electric poles, power lines and substations, etc. – to ensure a viable transfer of facilities.
PECO, in a statement, said the Feb. 11 power interruption was due to the National Grid Corporation of the Philippines’ (NGCP) shutting down the Santa Barbara power barge 69,000-volt line and replacing the 69,000 volt pole in Barangay Mansaya and Rizal Street in Lapuz district.
On Saturday, MORE Power president Roel Castro said he was looking forward to having a smooth transition talks with PECO.
“I hope we can already come to the table so we could discuss…I’m hoping and praying that the other side will soften their hearts,” said Castro.
PECO legal counsel Inocencio Ferrer Jr. previously said the company “will avail itself of all legal remedies” to ensure that the expropriation of its assets won’t take place.”
“There would be a lengthy period of time where the people of Iloilo City will not have any electricity,” he warned.
Ferrer said PECO is more qualified than MORE Power to be granted a legislative franchise under the Prior Operator Rule.
“The continuation of its operations will serve public interest as its operations are reliable, consistent and cost-effective,” said Ferrer.
PECO was established in 1923 and has been serving the consumers of Iloilo City for over 95 years.
It has five sub-transmission line substations in as many districts: in Barangay Baldoza, La Paz; Barangay Tabuc Suba, Jaro; Barangay Bolilao, Mandurriao; Barangay Avanceña, Molo;, and General Luna Street, City Proper. (With a report from the Philippine News Agency/PN)