IT APPEARS that Panay Electric Company (PECO) will lose its franchise to MORE Electric and Power Corporation (formerly MORE Minerals Corporation) that is poised to take over power distribution in Iloilo pursuant to a new franchise recently issued by Congress.
PECO, whose franchise is expiring in January 2019, has applied for renewal way back on July 22, 2017 and it was endorsed for approval by no less than the Energy Regulatory Commission (ERC) under House Bill No. 6023, but it has yet to undergo final hearing. On the other hand, MORE’s application which was only filed on Aug. 22, 2018 was promptly approved by the Lower House and forwarded to the Senate.
On Monday last week, upon receipt of the bill from the House, the Senate’s Committee on Public Service promptly “approved in principle” the franchise of MORE Electric and Power Corporation (MEPC) as the new power provider for Iloilo.
With committee chairperson Sen. Grace Poe saying she has received numerous complaints in the Senate about PECO’s “bad service and penchant for overbilling its customers”, we believe the company’s position as franchisee and power provider for the city is seriously endangered.
Nevertheless, PECO’s chief counsel Inocencio Ferrer is confident that if the Senate will conduct its own investigation, it will find that MORE as electric power provider is not qualified. It has no experience being just newly organized on Sept. 21, 2018 and the fact is that it has no power plant, personnel or equipment to provide electric service.
However, as reported in Panay News, MORE president Roel Castro explained their offer to buy the assets of PECO, which will have no more use for them after losing the franchise, with just compensation for the assets that they may use. MORE’s primary concern is that there will be no interruption in the power service.
Castro, former president of the Palm Concepcion Coal Power Plant in Concepcion, Iloilo, assured Ilonggos that MORE Electric and Power Corporation will be efficient in distributing electricity even if it is a new industry player. We gathered that the principal behind Palm Coal and MORE firms is Mr. Enrique Razon, Jr. who is currently listed in the Forbes Philippines’ Top Ten Richest List.
As we see PECO’s position right now, it is not inclined to give up the fight. Its priority right is to renew its power franchise for Iloilo which is already pending in Congress before MORE’s application was filed.
PECO owns the power installations and facilities but we believe that MORE, with its principals behind it, has the financial capability to immediately expand the power service needed by Iloilo, now a “booming metro” as one research outfit called it.
At this point, why not PECO and MORE just decide to join forces? This can be a wise solution to the franchise dispute and assure the expanding metropolis with adequate and uninterrupted power service.
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Historical Quote of the Week
“Iloilo has built the first modern and beautiful customs house in the country.” (For comments or reactions, please e-mail to jnoveracompany@yahoo.com)/PN
