MORE Power takes over PECO

MANILA, Philippines — More Electric and Power Corp. (MORE Power), owned by gambling and ports magnate Enrique Razon Jr., has taken control of the Iloilo City distribution assets of Panay Electric Co. (PECO).

However, PECO is still opposing the take over, saying it is unjust and irregular given that the expropriation case is still pending in high courts.

In a statement, MORE Power president and CEO Roel Castro said the takeover of PECO’s distribution assets is in line with the writ of possession issued by the Iloilo City Regional Trial Court (RTC) Judge Emerald Requina-Contreras and implemented by the Iloilo City Sheriff’s Office.

“Let a Writ of Possession be issued to MORE Power in order to place MORE in possession of the enumerated properties above under categories A and B. The Sheriff of this court or other proper officer is hereby ordered to place MORE Power in possession of the property above the enumerated and submit a report thereof to the court, with service of copies to the parties pursuant to Section 2 of Rule 67 of the Rules of Court,” Contreras said in the order.

The new Iloilo City power distribution utility assured the city’s residential and business customers that it would ensure continuous power supply in the city and is deploying reaction teams 24/7 to address complaints from consumers.

“In order to ensure continuity of services to the consumers of Iloilo City, MORE Power troubleshooters and line teams are mobilized to provide assistance as may be needed,” MORE Power said.

Contreras granted the writ of possession to MORE Power under the expropriation case it filed against PECO on March 11, 2019.

MORE Power started the process of taking over PECO’s electricity distribution facilities as the new distribution utility after securing the 15-year franchise from Congress in 2019.

PECO’s franchise expired on Jan. 19, 2019 after failing to secure an extension from Congress.

Under Republic Act 11212 signed on Feb. 14, 2019 by President Duterte, MORE Power was authorized to take over all distribution assets and other properties whether private or government-owned so it can distribute electricity in Iloilo City.

Among tyhe PECO distribution assets it has taken over as of Sunday are the following: Baldoza-La Paz Substation (land including all machineries and improvements, buildings); General Luna Substation (meter lab, power plant building and switchboard house); Tabuc Suba, Jaro Substation (land, machinery); Bolilao, Mandurriao Substation (land, buildings and machinery) and Molo Substation (land, and buildings, machinery) on Avanceña Street.

MORE Power said it is ready to submit to the Iloilo City RTC its program for the complete takeover of the distribution facilities in the city, including the timelines on the transition period, accounting, turnover of records like the list of consumers, and documents relevant to the operation of the distribution system.

However, PECO said the order was already declared by another RTC as unconstitutional on equal protection and due process grounds the expropriation provisions of Republic Act 11212 which granted the franchise to MORE.

Moreover, the expropriation case remains as MORE elevated the issue to the Supreme Court.

Questioning the issuance of the RTC’s Order and Writ, PECO filed with the Court of Appeals a petition for certiorari challenging the same and applied for a temporary restraining order and/or writ of preliminary injunction to restrain the implementation of the order and/or any writ that may be issued by the RTC.

PECO’s properties are classified into three categories:

Category A includes all properties that PECO did not contest as “distribution assets” such as the Baldoza, La Paz Substation and Gen. Luna, City Proper Substation, and Tabuc Suba, Jaro Substation, among others with a total assessed value of P217.94 million.

Category B properties are those the court initially found as part of the distribution assets being listed under the PECO’s “distribution plant” in the ERC record, and may be necessary for the operation of MORE Power so that the operation may not be interrupted once the writ is implemented. These properties include meter lab, power plant building and switchboard house in Gen. Luna St. in city proper with a total assessed value of P14.79 million.

Category C refers to properties excluded in the coverage of the writ because these are either under the classification “general plant” or not listed under the distribution plant” based on the ERC record. These properties include the pole stockyards in Diversion road, Mandurriao and land set aside for future substation in Brgy. Gen. Hughes in City Proper with a total assessed value of P2.25 million.

The court order indicated that the writ of possession issued to MORE Power covers properties under categories A and B.

Contreras said properties under categories B and C are the properties which the court reserves to include in the final determination in the expropriation proceedings.

“The court would like to emphasize that some of the properties in Category B may not be awarded as among the actual properties to be expropriated if the court finds that they are not actually necessary for the realization of the purpose for which the franchise is the granted,” the judge said.

The expropriation case was first assigned to RTC Branch 37 under Judge Yvette Marie Go, who inhibited from the case after granting MORE Power’s petition for a writ of possession.

Meanwhile, a party-list congressman asked President Duterte to step in the on-going expropriation battle between MORE Power.

Abang Lingkod Party-list Representative Joseph Stephen Paduano said he is seriously concerned about the alleged interference by some SC officials previously reported in the news. These alleged interference paved the way for a series of controversial and unusual inhibitions by RTC judges in the franchise-related expropriation case.

“The only way we can stop this abuse of our legal system is if President Duterte himself looks into all these unusual and irregular events which have come to taint the integrity of the judiciary,” Paduano said.