IT DOES NOT make sense that Panay Electric Co. (PECO) is dangling a promise apt to be broken – a P1.1 billion investment to upgrade its facilities in the next 10 years.
It can’t be done because the 96-year-old company has lost its franchise and is now running on temporary certificate of public convenience and necessity (CPCN) issued by the Energy Regulatory Commission (ERC).
The sole power distribution franchisee in Iloilo City now is MORE Electric and Power Corp. (MORE Power) by virtue of Republic Act (RA) 11212 signed by President Rodrigo Duterte on Feb. 14, 2019.
To recall, the 17th Congress had junked PECO’s application for franchise renewal because of thousands of written complaints accusing the company of overbillings, unbridled line disconnections and non-refund of bill deposits, among others.
A group called “No to PECO Franchise” had lobbied before the House of Representatives in behalf of those complainants.
On Oct. 3, 2019 the Court of Appeals junked the petition of PECO to stop MORE Power from expropriating its power distribution system; and nullified the ruling of the Regional Trial Court (RTC) in Mandaluyong City declaring two sections of RA 11212 unconstitutional.
The CA commented that the Mandaluyong court “has no jurisdiction to restrain and/or enjoin the expropriation case, including MORE’s application for writ of possession.”
As the new franchise grantee, MORE Power has the power to expropriate PECO’s facilities under sections 10 and 17 of RA 12112.
To quote excerpts from Section 10, “The grantee may acquire such private property as is actually necessary for the realization of the purposes for which this franchise is granted, including but not limited to poles, wires, cables, transformers… Provided, that proper expropriation proceedings shall have been instituted and just compensation paid.”
Section 17 is a transitory provision that allows PECO “to operate the existing distribution system within the franchise area until the acquisition by the grantee of its distribution system.”
As the ponente, CA Justice Alfredo Ampuan cited sections 23 and 78 of RA 9136 or the Electric Power Industry Reform Act (EPIRA) as legal legs supporting the urgent implementation of all provisions of RA 11212.
EPIRA’s Section 23 says, “Distribution utilities may exercise the power of eminent domain [expropriation], subject to the requirements of the Constitution and existing laws.”
And Section 78 provides that “the implementation of this act shall not be constrained except by an order issued by the Supreme Court (SC).”
Obviously, unless the SC rules otherwise, the transition of power distribution from PECO to MORE Power could not be derailed. The only prerequisite pending is the issuance of the writ of possession by the Iloilo RTC.
Section 2 or Rule 67 of the Rules of Court partly says, “Upon the filing of the complaint or at any time thereafter and after due notice to the defendant, the plaintiff shall have the right to take or enter upon the possession of the real property involved if he deposits with the authorized government depositary an amount equivalent to the assessed value of the property.”
Contrary to its allegation, PECO would lose nothing from its expropriation. By its own tax declaration, the company’s assets are worth P481,842,450. This is the amount that MORE Power has already stashed away in the bank as payment to PECO in the expropriation process.
Mayor Jerry Treñas recently broke his silence by chastising PECO for its inefficiency that had resulted in a series of fire incidents caused by inadequately-maintained “spaghetti” lines, illegal connections, overloaded transformers and hazardous electric posts.
How could Iloilo City level up with so much threat to infrastructure? (hvego31@gmail.com/PN)
