DOE ready to take over Iloilo power

MANILA, Philippines — The Department of Energy (DOE) remains ready to take over Iloilo City’s power distribution service in the event the transition between Panay Electric Co. (PECO) and new player MORE Power and Electric Co. go south.

Energy Secretary Alfonso Cusi said the agency is prepared to continue the power service in Iloilo City in case the two parties involved fail to resolve their dispute.

On March 6, PECO filed a petition for temporary restraining order (TRO) or writ of preliminary injunction with the Mandaluyong Regional Trial Court (RTC) as it challenged the validity of a congressional franchise given to MORE Energy led by Enrique Razon.

MORE Power president and chief executive officer Roel Castro said the company has yet to receive the summon from the Mandaluyong RTC. “Our legal team is looking into it,” he said.

PECO is also asking the court to stop government agencies involved in implementing Republic Act 11212 while the validity of the law is being challenged and heard.

RA 11212, which grants the franchise to MORE Energy, allows the new player expropriate PECO assets under Sections 10 and 17.

PECO said this violates its right to due process and constitutional right to equal protection of the law.

It argued that “the authority granted to MORE for taking PECO’s assets is arbitrary and confiscatory” and “the law authorizes taking that is not for a public purpose.”

PECO said seizing its assets for the benefit of MORE Energy, which has stated early on that it does not have any facilities to begin with, is equivalent to confiscation of property that may not be done by government or delegated to a private entity.

“The assailed provisions of RA 11212 is not so much the grant of the power of eminent domain, but rather the scheme by which the law was used in a not-so-subtle attempt to unduly interfere with PECO's rights,” PECO said.

PECO’s franchise expired last Jan. 19 and was not renewed by Congress. However, it was allowed to continue distributing power to Iloilo City as agreed by the DOE and ERC to ensure continued power service in the franchise area.

This is based on the certificate of public convenience and necessity issued by then Energy Regulatory Board (ERB), ERC’s predecessor office to PECO on May 31, 1996 effective until May 25.

The CPCN is the authorization issued by the ERB/ERC to entities engaged in the transmission or distribution of electricity for the operation of a transmission or distribution system.