ILOILO City – Panay Electric Co. (PECO) has asked the Energy Regulatory Commission (ERC) to reverse the latter’s order revoking the power distributor’s Certificate of Public Convenience and Necessity (CPCN). PECO accused rival MORE Electric and Power Corp. (MORE Power) of making false claims that led to ERC’s decision to transfer power distribution rights.
A 25-page Urgent Motion for Reconsideration was filed yesterday by Atty. Estrella Elamparo, PECO legal counsel, praying for the reinstatement of PECO’s CPCN and the revocation of MORE Power’s Provisional Authority until the situation on the ground had been thoroughly examined.
On March 5, ERC in a three-page resolution granted MORE Power a Provisional Authority to operate.
According to Elamparo, such authority could only be granted if MORE Power had its own distribution system and the full transition of operations from PECO had been completed.
What’s happening on the ground, however, was far different, she stressed.
“This is an illegal corporate takeover,” said PECO head of Public Engagement and Government Affairs Marcelo Cacho in a press briefing on March 9. “They have taken over our facilities, they are trying to get our own employees, and they are trying to usurp our contracts as well as our distribution rates.”
In its Motion, PECO pointed out that ERC committed a “reversible error” when it granted MORE Power a Provisional Authority.
MORE Power’s application was not supported by verified and authenticated documents or affidavits as required by Section 8 of Executive Order No.172 creating the Energy Regulatory Board, PECO stressed.
“What verified and authenticated documents were submitted? None. Zero. They only submitted a Manifestation with Urgent Motion for Early Resolution,” according to Elamparo, which contained “falsehoods” and mere “say-so”.
“They can’t submit anything other than their misinterpretations,” she lamented.
PECO further asserted that the issuance of MORE Power’s Provisional Authority was based on “serious misrepresentations and misapprehension of facts.”
Despite the pending Supreme Court case regarding the constitutionality of MORE Power’s franchise, the Iloilo Regional Trial Court, Branch 23 issued a Writ of Possession, to which PECO filed a Motion for Clarification and a Petition for Certiorari with the Court of Appeals in Cebu.
MORE Power proceeded with the “violent” takeover, said Elamparo, but Judge Emerald Requiña-Contreras of Iloilo RTC, Branch 23 reiterated that her Addendum clearly stated that “the operation should still be handled by PECO personnel who have the technical expertise” and that MORE Power was only meant to observe during the transition” and subsequently ordered MORE Power to return operations to PECO.
“I was so shocked when I was informed by the sheriff that apparently MORE Power had changed its mind,” stressed Elamparo, recounting following up the information on the writ. “The response of the sheriff was ‘yun po ang sabi ng MORE Power eh, wala na kami magawa.’”
PECO’s Urgent Motion for Reconsideration at ERC insisted it was “inaccurate” and “misleading” for MORE Power to claim it had taken full control of the operation of the distribution facilities based on what had transpired.
It further stated the revocation of its CPCN was also an error as MORE Power had yet to prove its financial and technical capabilities to operate.
Section 17 of Republic Act 11212, MORE Power’s franchise, explicitly states that “Panay Electric Co. shall in the interim be authorized to operate the existing distribution system.”
“If MORE Power truly wanted to fulfill its mandate of providing a public service, then it would focus less on taking and instead do more building,” read the PECO motion. “Even the taking, however, is being done illegally.”
MORE Power has not yet fully transitioned towards full operations and cannot prove its financial and technical capabilities, according to Cacho.
He also pointed out that there were only 40 formerly contractual PECO employees who transferred to MORE Power’s employ and only one supervisor.
Furthermore, during a March 2 hearing at the Iloilo RTC, Branch 23, according to Elamparo, it was raised that based on the Sheriff’s Return on the Writ of Possession, the sheriff mentioned that both MORE Power and PECO agreed that “the status quo of the electric operation will be maintained.”
Also, it is currently only PECO that purchases power for distribution on a daily basis through its current power supply contracts from the Wholesale Electricity Spot Market (WESM).
“PECO is the only entity in Iloilo that is registered with WESM and to this day, it is the one that gets billed by said entity for power purchases through it, as evidenced by the WESM bill sent to PECO,” the long-time power distributor pointed out.
PECO further emphasized that authorizing MORE Power to source power requirements from PECO’s current power generation suppliers violates the principle of relativity of contracts as stated in Article 1311 of the Civil Code.
Under such principle, contracts can only bind the parties who entered into it and cannot favor or prejudice a third person.
“Had the Honorable Commission found that MORE Power is technically and financially capable of operating the distribution system, then why would it authorize MORE Power to source its power requirements from the current power generation suppliers of PECO,” PECO pointed out.
“The fight is far from over. We caution MORE Power from prematurely celebrating and informing everybody that they are in control,” said Elamparo./PN
PECO is the ONLY entity that is above the law.
The President, ERC, The Bill and everything is nothing…..
Those are facts.