“PARTING is such sweet sorrow,” says a goodbye line from Juliet to Romeo in William Shakespeare’s play Romeo and Juliet. What makes their sorrowful parting “sweet” is the hope of meeting each other again.
Could this romantic quotation illustrate the “affair” between Panay Electric Company (PECO) and MORE Electric and Power Corporation (MORE Power) as the former exits and the latter takes over the power distributorship in Iloilo City?
This corner understands the pain and sorrow that must have hit the Cacho family, which has enjoyed 95 straight years of the energy-distribution monopoly in the city. Nostalgic, yes, but no franchise stays valid forever. Why take it against MORE Power, which has gone through the legality of winning the next 25-year franchise?
In fact, both power firms have already recognized the law, Republic Act No. 11212, passed by Congress on Dec. 11, 2018 and approved by President Rodrigo Duterte on Feb. 14 (Valentine’s Day), 2019.
Having reviewed the law in its entirety, this writer sees “teamwork” as viable solution to the “tug of war” between the two companies. It’s because the grant of the new franchise to one does not preclude the possibility of mutual satisfaction. Let us count the ways.
The law’s Section 17 on transition of operations says, “In the public interest and to ensure uninterrupted supply of electricity, the current operator, Panay Electric Co. (PECO) shall in the interim be authorized to operate the existing distribution system within the franchise area, as well as implement its existing power supply agreements with generation companies that had been provisionally or finally approved by the Energy Regulatory Commission (ERC) until the establishment or acquisition by the grantee of its own distribution system and its complete transition towards full operations as determined by the ERC, which period shall in no way exceed two years from the grant of the legislative franchise.”
Incidentally, PECO still holds a valid certificate of public convenience and necessity (CPCN) that entitles it to function as power distributor until May 25 this year. MORE Power as the new franchisee shall be required to get its own CPCN from ERC.
In the event the new franchisee fails to operate continuously for two years, according to Sec. 11, “franchise shall be deemed revoked.”
The transition period (Sec. 5) is meant to give time to MORE Power to “modify, improve, change its facilities and equipment for efficient distribution and low cost.”
Without waiting for that build-up, the grantee under Sec. 10 is authorized to exercise the power of eminent domain or the power of the government to expropriate a utility or to delegate that power to a private group that would pay the mutually agreeable cost of that acquisition.
As publicly announced by its chief executive officer, Roel Z. Castro, MORE Power has earmarked an outlay of 700 million pesos to hasten kick-start of operation through acquisition of PECO’s fixed assets like land, buildings, facilities and equipment.
What could be fairer than that? Should PECO refuse, it would gain nothing from idle facilities?
What about the regular employees of PECO who stand to lose their income?
Sec. 17 also provides that MORE Power shall, “as far as practicable and subject to required qualifications, accord preference to hiring former PECO employees.”
The next sensible work to do is for the top-level managers of the two firms to meet at the same table with officials of the ERC which, as specified in Sec. 2, “shall resolve cases of dispute or disagreement between parties.”
Good luck! (hvego31@gmail.com/PN)
