MANILA – MORE Electric and Power Corporation (MORE Power) moves a step closer to replacing Panay Electric Company (PECO) as the new power distribution utility in Iloilo City. Getting majority votes from senators present at the Senate session last night, its franchise application was approved on second reading. The lone abstention was Ilonggo senator Franklin Drilon.
The franchise application is expected to be passed on third and final reading once the bicameral committee settles all the issues, including the proposed two-year transition period from PECO to MORE Power.
Councilor Plaridel Nava, representing the Iloilo City consumers, said last night the approval of MORE Power’s franchise application on second reading was “a welcome development.”
Iloilo City residents have long been suffering from the high power rates and poor service of PECO, he said.
PECO’s franchise is expiring on January 2019 and its application for renewal (House Bill No. 6023 submitted in July last year yet) remains stuck in the House of Representatives’ Committee on Legislative Franchises.
“I am elated,” Nava told Panay News. “Finally we will be freed from the bondage of PECO’s abuses and arrogance.”
He hoped that “the bicam will immediately iron out the transitory provisions so that the franchise bill will finally be passed and transmitted to President (Rodrigo Duterte) for his approval.”
Early this month during the meeting of the technical working group that the Senate’s Committee on Public Services formed for a smooth PECO – MORE Power transition, the Energy Regulatory Commission (ERC) proposed a two-year transition period.
In October, the Senate Committee on Public Services chaired by Sen. Grace Poe approved in principle the franchise of MORE Power as the new distribution utility in Iloilo City.
Nava and fellow Iloilo City councilor Joshua Alim previously suggested that the transition period be shortened to six months. They said two more years under PECO would only prolong the suffering of consumers.
Sen. Sherwin Gatchalian, a member of the Senate’s Committee on Power Services, suggested that the transition period be limited to one year only. Six months is too short while two years is already too long, he said.
For its part, MORE said it would take over as Iloilo City’s new power distribution utility only after having obtained a Certificate of Public Convenience and Necessity (CPCN) from the ERC.
“In the public interest, (PECO), notwithstanding the expiration of its franchise, shall be allowed to continue on holdover capacity under its current CPCN until a new entity with a legislative franchise applies for and is granted a CPCN to engage in the transmission and distribution of electricity in the affected franchise area,” MORE said.
“The ERC shall prioritize the applications filed relating to this situation to measure the length of the transitory period. The ERC shall also ensure that there is no interruption in the provision of electric distribution services in the franchise area during the transition between the new operator and the current operator,” it added.
If ever both parties are unable to agree on the terms and conditions of the transfer, the franchise holder shall be authorized to exercise the right of eminent domain, MORE further said.
“With the writ of possession issued by the Regional Trial Court with jurisdiction, the franchise holder shall take possession and control of the distribution system assets to operate it to assure the continuity of the services in the franchise area,” it said.
PECO has been the sole power distribution utility in Iloilo City for 95 years.
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.
PECO, however, indicated it won’t give up its franchise area without a fight.
“Mabato kami ‘ya…Wala sila assets. Kun mahatagan man sila franchise sa January, ano ubrahon nila kay indi kami ‘ya maghatag voluntarily sang amon assets,” said Ferrer.
PECO plans to use all legal remedies available and go all the way to the Supreme Court.
“Kuhaon lang daw nila ang assets sang PECO. Right now I’m telling the franchise committee chairman and members that Panay Electric Company will never sell its assets voluntarily. No, we will never sell our assets to a competitor,” Ferrer stressed./PN
