ILOILO City – Which between Panay Electric Co. (PECO) and More Electric and Power Corp. (MORE Power) would be the first to secure a Certificate of Public Convenience and Necessity (CPCN) from the Energy Regulatory Commission (ERC)?
A CPCN is a working permit or operating license required of power distributors.
PECO, whose franchise expired on Jan. 19, 2019, was allowed to continue operating because MORE Power, which in February bagged a franchise to be the new power distributor in this city, still has to put up its own power distribution facilities.
PECO’s CPCN, however, would be expiring this May 25.
According to PECO administrative manager Marcelo Cacho, they applied for a new CPCN and ERC already completed the hearings.
“We have submitted all the evidentiary requirements so basically decision na lang sang ERC ang ginahulat,” said Cacho.
He expressed confidence that ERC would be able to make a decision before May 25.
If a CPCN is granted, Cacho said, “that means we will continue to operate.”
If not, Cacho said, PECO would still continue operating because “public interest is at stake. We cannot just stop (distributing power).”
PECO had been the sole power distributor in this city for over nine decades. But plagued with mounting criticism from dissatisfied consumers complaining of erroneous billing, poor customer service and high rates, among others, it failed to secure a new or extended franchise from Congress.
On the other hand, MORE Power president Roel Castro said last week’s hearing for their CPCN application was moved to next week due to cracks at the ERC building in Metro Manila sustained from a recent earthquake.
Castro believed their application would be decided before the May 25 expiration of PECO’s existing CPCN.
“Once our CPCN is granted we can already start some of our preparatory activities,” said Castro.
One of these is the conduct of information dissemination with regards to new applications for power connection.
MORE Power wanted to take over PECO’s power distribution system but the latter refused.
This led to MORE Power to go to court and sought expropriation proceedings against PECO. Cases are now pending in courts here and in Metro Manila regarding this.
PECO vowed to exhaust all legal remedies to protect its assets. It said its rights to its property are protected against any arbitrary and confiscatory undertaking.
In seeking the expropriation of PECO’s assets, MORE Power cited Section 10 of Republic Act 11212 (its power distribution franchise) and Rule 67 Section 2 of the Revised Rules of Court authorizing it to take possession of, exercise control over, and manage and operate all of the power distribution assets in Iloilo City.
The expropriation of PECO’s assets in its favor, according to MORE Power, would allow it to “immediately address and correct poor services, overcharging, frequent brownouts, expensive rates, old and unsafe facilities and practices, and other service deficiencies that this city’s power users and consumers had long suffered.”/PN
