Published March 26, 2019, 12:45 AM
By Floro L. Mercene
The end of the congressional drama
over the franchise of the utility that will distribute electricity in Iloilo
City with almost 60,000 customers came with surprise for no one but the owners
of Panay Electric Co. (PECO) whose franchise expired last January 19.
President Rodrigo Duterte signed on
Valentine’s Day, February 14, into law Republic Act No. 11212 giving MORE
Electric Power Corp. owned by business tycoon Enrique Razon Jr. a 25-year
congressional fiat to take over the city’s power distribution franchise, ending
the 95-year monopoly by the Cacho clan.
Despite its victory in securing the
congressional franchise, MORE Power sought to present a humble face to its
rival by seeking negotiations for an amicable settlement with the Cachos for a
just compensation for the PECO assets that MORE Power needs to take over so it
could build its own reliable electricity distribution system.
This was supported by one of the
Cachos’ original political allies, Senate Minority Leader Franklin Drilon, who
said there should be an amicable settlement between the two companies to ensure
Iloilo City’s consumers would enjoy continuous electricity supply.
The Cachos, however, remain defiant
of the mandate that the Senate and the House of Representatives granted to MORE
Power and which President Duterte signed into law. PECO’s owners declared MORE
Power should set up its own electricity distribution system as it plans
to still secure a legislative franchise when a new Congress convenes in June
this year so Iloilo could have two power utilities.
RA 11212 actually entitles MORE
Power to take “immediate possession, operation, control, use, and disposition
of the properties sought to be expropriated, including the power of
demolition,” once it has initiated expropriation proceedings and deposited in
the bank the full assessed value of the PECO distribution asset it wants to
take over.
To ensure that Iloilo City consumers
will enjoy continued electricity service as MORE Power builds up its
electricity distribution system, Congress allowed PECO to continue to operate
for a maximum period of two years.
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