ILOILO – Pressing for enhanced electricity services, the Sangguniang Bayan (SB) of Pavia town unanimously approved a resolution on Monday, August 12, calling for the hastening of MORE Electric and Power Corporation’s (MORE Power) expansion into 15 municipalities, and Passi City, in Iloilo Province.
Introduced by SB members Daniel Fajardo II and Jose Maria Trimañez, the resolution further urged MORE Power – the sole power distributor in Iloilo City – to not only broaden its operations in Pavia but also to consider a joint venture agreement with Iloilo Electric Cooperative 1 (ILECO 1).
The Resolution cited MORE Power’s recent successful collaboration with the Central Negros Electric Cooperative in Bacolod City and Negros Occidental under the Negros Electric and Power Corporation franchise.
The Pavia SB’s call comes three years after the municipality’s consumers and local government unit initially campaigned for MORE Power’s service expansion. This was further facilitated through legislation on this introduced by 2nd District’s Cong. Michael Gorriceta.
MORE Power’s expansion beyond Iloilo City is legally backed by Republic Act 11918, enacted in August 2022, which permits its establishment, operation, and maintenance of electricity distribution across Pavia, Alimodian, Anilao, Banate, Barotac Nuevo, Dingle, Dueñas, Dumangas, Leganes, Leon, New Lucena, San Enrique, San Miguel, Santa Barbara, Zarraga, and the component city of Passi.
These areas are currently being served by ILECO 1, 2 and 3.
The Act faced challenges from ILECOs 1, 2, and 3. They contested the constitutionality of MORE Power’s expansion franchise citing overlaps with their own exclusive franchise areas.
However, a recent Supreme Court ruling affirmed the legality of MORE Power’s expansion franchise, stating that ILECOs’ franchises are not exclusive.
The Pavia SB resolution emphasized that MORE Power has consistently offered lower rates for the residential class compared to ILECO 1 over the past year.
Additionally, MORE Power’s generation rate has remained below that of ILECO’s during the same period, it stressed.
MORE Power president and chief executive officer Roel Castro said they already extended their primary lines to the boundary of Iloilo City and Pavia town, the target jump-off point for the expansion.
The Megaworld substation in Mandurriao district will serve as the main supply point for Pavia due to its proximity to the town.
Castro projected the expansion would take four to five years before they could complete the expansion. He noted their initial investments in the expansion between P2 billion and P2.5 billion.
The call for MORE Power’s expansion was first made in August 2021. In a privilege speech, Pavia SB member Daniel Fajardo II pointed out that a decrease in the cost of electricity would have a direct impact on the lives of Pavia’s residents and stakeholders such as the various businesses that have made the municipality their base of operation. He cited as example neighboring Iloilo City which enjoyed a dramatic drop in electricity rate by MORE Power.
Fajardo’s privilege speech prompted the SB to unanimously pass a resolution seeking the possibility of Pavia being covered by MORE Power’s service.
“We are adjacent to Iloilo City. It is our duty to provide our stakeholders with cheaper power to help them grow their businesses that will hopefully translate to more investments, jobs and tax revenues for the municipality of Pavia,” Fajardo said.
Castro acknowledged the clamor by those outside of Iloilo City for better service and lower rates.
“As a public utility, we cannot turn our back on this. May obligation tayo and if people are wanting to receive our service then we cannot deny that,” said Castro.
What the SC Says
Upholding the validity of MORE Power’s expansion franchise, the Supreme Court ruled that electric cooperatives do not have a constitutional right to an exclusive franchise within their coverage areas.
In an en banc decision dated July 30, the high tribunal stressed: “A franchise, as a privilege granted by the state, is not the exclusive private property of the franchisee. Thus, it must yield to serve the common good, as determined by Congress.”
The SC decision was penned by Associate Justice Rodil V. Zalameda.
This high court ruling means that MORE Power can now expand its service areas to 15 towns and the component city of Passi.
The Supreme Court pointed out that Congress enacted RA 11918 to make electricity more affordable for the people of Iloilo province.
Congress determined that expanding MORE’s franchise would promote healthy competition since MORE was capable of offering lower energy rates, the tribunal said.
“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 in 2029, 2039, and 2053. This is under the Electric Power Industry Reform Act (EPIRA), which encourages competition in the electricity industry,” the SC said./PN
