THERE is no longer ground for Panay Electric Co. (PECO) to insist that, despite expiration of its franchise, it possesses the certificate of public convenience and necessity (CPCN) that legitimizes its temporary authority as power distributor in Iloilo City.
The order of the Energy Regulatory Commission (ERC) revoking that CPCN and issuing a new one to MORE Electric and Power Corp. (MORE Power) has reinforced the decision of Judge Emerald Requina-Contreras of the Regional Trial Court (RTC) Branch 23 sequestering the distribution utility in compliance with Republic Act (RA) 11212.
It puzzles us electricity consumers that PECO still clings to the idea of perpetuating itself in service under a franchise that expired on midnight traversing January 18 to 19, 2019.
Do PECO managers expect us consumers to take up the cudgels for them and demand Congress to revitalize its lost franchise?
No, definitely, because the reason why the House committee on franchises junked PECO’s application for renewal was massive outcry by infuriated customers who had been forced to pay padded bills, unreasonably disconnected and reconnected in exchange for hefty fines and repeat deposits.
No doubt, PECO has been with us for 96 years, but the idea of being “indispensable” has given its incorporators a false sense of security regardless of wrongdoings.
When the President signed RA 11212 on Feb. 14, 2019 awarding the 25-year franchise to MORE Power, PECO even tried to sow panic by scaring us, “MORE Power has no power-distribution assets and technical personnel.”
But now we know in the past 10 days that the new franchisee has taken over the power seat. Now we know that the transition from the old franchisee to the new one is legally tenable for continuity of service.
Has it deprived PECO of what to them is “private property”?
“No” is the answer. It transcends private property. All the power-distribution facilities have already been – and are still being – paid for by the power users. In fact, Judge Contreras’ issuance of for writ of possession sequestering the distribution utility stems from that premise and the promise of “just compensation” that the law requires MORE Power to pay PECO. MORE Power has already stashed away in escrow in a bank the amount of P481,842,450 for that purpose.
Judge Contreras stressed that a law is always presumed constitutional until declared otherwise by the Supreme Court. To her, RA 11212 is of paramount importance because electricity is a basic necessity and vested with public interest.
As provided for in Republic Act No. 9136 or the “Electric Power Industry Reform Act” (EPIRA), “the costs for the acquisition, construction and the establishment of the power distribution system were allowed to be recovered through the retail rate approved by the Energy Regulatory Commission (ERC), which retail rate covers full recovery of the costs/funds used to acquire, construct and establish these power distribution system assets.”
PECO has erred in imposing another deposit from “disconnected” customers. The bill deposit for one month of the estimated bill is required only once and is refundable on demand after three years as per article 23 of the “Magna Carta for Residential Electricity Consumers,” saying that the utility “must immediately reconnect services not later than 24 hours from payment of arrearages.”
PECO has amassed humongous wealth from almost a century of power monopoly. But as to whether it has satisfied its 65,000 customers nowadays, we are sorry it has not. Its leaning lamp posts, “spaghetti” wirings and dangling “whatevers” simply made renewal of its 25-year franchise unimaginable. (hvego31@yahoo.com/PN)
