MANILA – The Senate’s Committee on Public Services “approved in principle” the franchise of MORE Electric and Power Corporation as new power distribution utility in Iloilo City to replace Panay Electric Company (PECO). Committee chairperson Sen. Grace Poe also ordered the creation of a technical working group to study the transition of power distribution from PECO to MORE.
PECO has been the sole power distribution utility in Iloilo City for 95 years and its franchise expires in January 2019. It applied for a renewal of franchise last year but the Lower House’s Committee on Legislative Franchises only conducted two hearings.
During the Committee on Public Services’ first hearing of MORE’s legislative franchise House Bill No. 8302 yesterday, Poe said she received numerous complaints from consumers during a visit to Iloilo City about PECO’s “bad service” and “penchant for overbilling customers.”
“People were saying they were not happy of the service (of PECO),” Poe said. “So we decided to approve in principle MORE in lieu of PECO.”
Iloilo City councilors Plaridel Nava and Joshua Alim told the members of committee composed of Poe, senators Juan Miguel Zubiri, Francis Escudero, Sherwin Gatchalian, and Risa Hontiveros, the complaints consumers against PECO.
“They were complaining about the overpricing of electricity under PECO,” Nava said. “PECO also has to refund P631 million in overbillings to customers.”
Alim, meanwhile, thank Poe’s committee “for hearing the sentiments of the oppressed Ilonggos.”
“After 95 years, victory (has been achieved) for the people of Iloilo City,” said Alim.
House Bill No. 8302 passed on third reading in the House of Representatives on Oct. 8 and formally transmitted to the Senate.
“It’s the liberation of the Ilonggos from the bondage of abuses and arrogance of the monopoly, PECO,” said Alim who had been rallying Iloilo City consumers against PECO since last year.
Though a newcomer in the power distribution business with no facilities of its own yet in Iloilo City, MORE assured Ilonggos it could get the job done.
Its legislative franchise House Bill No. 8302 authorizes it “to exercise the power of eminent domain” and “to acquire such private property as is necessary for the realization of the purposes for which the franchise is granted.”
The “private property” to be acquired can only refer to the existing assets and business of PECO.
MORE president Roel Castro admitted early this month they wanted to buy the assets of PECO.
“There could be a just compensation of assets that we may use,” said Castro.
Castro admitted it would take time to set up a new power distribution network. But what happens if PECO won’t sell its assets to MORE?
“We are confident that government regulatory bodies will be looking into that. The primary concern is making sure there would be no interruption of service,” said Castro.
Castro, former president of the Palm Concepcion coal-fired power plant in Concepcion, Iloilo, assured Ilonggos More Power would be efficient in distributing electricity even if it is a new industry player.
“Running an electric utility is not so much a specialized job or skill as we may think. What I am trying to emphasize is maraming talents out there. It is not as if it’s too specialized that you really have to go out and look for them,” he said./PN
