ILOILO City – There would be no power crisis if More Electric and Power Corporation (More Power) gets to be the power distributor in this city, stressed its president Roel Castro. They wanted to buy the assets of Panay Electric Company (PECO).
More Power is the previous More Minerals Corporation (MMC), a mining company that applied for a franchise to distribute power here. Just this Sept. 21 the Securities and Exchange Commission (SEC) approved its transformation into a power company, said Castro yesterday.
He clarified there would be no corporate takeover of PECO, this city’s sole power distributor for over 90 years whose franchise would expire next year.
“We are not taking over the company (but) there could be a just compensation of assets that we may use,” said Castro. “But again, it is too premature to say. We do not have the franchise yet.”
PECO has applied for a franchise extension of 25 more years. Its application is still with the House committee on legislative franchises.
On the other hand, More Power’s franchise application already passed the committee’s scrutiny and would be forwarded to the plenary for further deliberation.
PECO assistant vice president for operations Engr. Randy Pastolero told Panay News the company won’t sell its assets.
“We have applied for a franchise extension. Ngaa ibaligya namon? Is it not easier for Congress to renew the franchise of PECO rather giving the franchise to an entity nga waay pa man facilities, not even a single pole?” said Pastolero.
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 Power?
“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.
Pastolero dismissed the remark. “Ang gwa sina daw pilitay? Seguro may mga layi man nga naga-protect sa mga corporations when it comes to that. Indi man na pwede nga i-confiscate lang imo property,” he said.
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.
Even if congressional approval of its franchise application is still uncertain Castro said More Power will, in the next few weeks, start hiring personnel such as technicians.
“We will have people and the equipment,” said Castro.
The Private Electric Power Operators Association (PEPOA) recently warned of a power crisis in this city if the franchise application will be given to More Power.
The franchise to distribute electricity must not be given to a company that has no distribution system and would have to build one from scratch, it told the Lower House’s committee on legislative franchises.
It would be wiser if PECO is allowed to extend its franchise, according to PEPOA in a letter to committee chairperson Cong. Franz Alvarez.
According to Atty. Ranulfo Ocampo, PEPOA president, “no company can get the required experience and qualifications (in power distribution) in just a few days.”
More Power is backed by Spanish-Filipino billionaire Enrique Razon and businessman Walter Brown of Monte Oro Resources & Energy Inc. Its authorized capital stock is P1 billion, said Castro.
“The company’s primary purpose has been amended from mining to electricity distribution. The papers have been submitted to Congress,” he added./PN
