POWER TUG-OF-WAR: Du30 may intervene in PECO-MORE Power tiff if…

ILOILO City – President Rodrigo Duterte has some idea of the power distribution franchise controversy in this city. He may intervene, he said during a speech in Puerto Princesa City, Palawan on Sunday. “Ang nangyayari sa Iloilo I’m really trying to find out. Is it justified?” asked the President.

The current sole power distributor in this city is Panay Electric Company (PECO). Its franchise is expiring in January 2019.

“Because if it is providing good electricity eh gusto mo lang mang-agaw ng negosyo, sabi ko eh ‘wag na,” said the President.

PECO has applied for a renewal of its franchise. But its House Bill No. 6023 submitted in July last year yet remains stuck in the House of Representatives’ Committee on Legislative Franchises.

On the other hand, the franchise application (House Bill No. 8302) of its rival, MORE Electric and Power Corporation, submitted only in Aug. 22, 2018, was quickly approved by the House within two months on Oct. 8, 2018 then “approved in principle” by the Senate’s Committee on Public Services on Oct. 22.

PECO was established in 1923 and has been serving the consumers of Iloilo City for over 95 years.

“If it can provide everything that the city needs to improve and develop, hindi ako makikialam,” said Duterte.

PECO has questioned the haste by which Congress has approved the franchise application of MORE Power.

A perusal of MORE Power’s incorporation history, its Certificate of Incorporation and Amended Articles of Incorporation of 2016, showed it is engaged in mining activities and never in power distribution.

PECO, on the other hand, has five sub-transmission line substations in as many districts: in Barangay Baldoza, La Paz; Barangay Tabuc Suba, Jaro; Barangay Bolilao, Mandurriao; Barangay Avanceña, Molo;, and General Luna Street, City Proper.

President Duterte made his short comment on Iloilo City’s power distribution situation during the First Subaraw Biodiversity Festival in Puerto Princesa City.

At first, the President warned local governments and the sole power distributor in Palawan, the Palawan Electric Cooperative, to solve the frequent power disruptions in the province or he would resort to expropriating its franchise.

He eventually mentioned the situation in Iloilo City.

“PECO is more qualified than MORE Power to be granted a legislative franchise under the Prior Operator Rule. The continuation of its operations will serve public interest as its operations are reliable, consistent and cost-effective,” said PECO legal counsel Inocencio Ferrer.

On the other hand, Marcelo Cacho, administrative manager and son of PECO president Miguel Luis Cacho, said MORE Power won’t be able to fulfill its obligations as an electric power distribution utility because it is not qualified and ill-equipped.

“PECO is the only operator, both as an existing and prior operator, in the electric power distribution history of Iloilo City, that built and expanded its facilities, equipment and trained its skilled technicians and employees for 95 continuous and uninterrupted years,” said Cacho./PN

1 COMMENT

  1. The issue of PECO is on it’s treatment of it’s consumers with regards to OVERBILLING, they do not care who f$^k you are and you must give them your money at any cost.

    PECO is competent in bringing reliable power to the city = NOTHING MORE NOTHING LESS.

    JUST OVERBILLING is issue here.

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