Iloilo power firm fails again to renew franchise

Published September 12, 2019, 4:26 PM By Tara Yap

https://news.mb.com.ph/2019/09/12/iloilo-power-firm-fails-again-to-renew-franchise/

ILOILO CITY — A House committee has once again denied an attempt by Panay Electric Co. (PECO) to renew its franchise to distribute power in this city.

The Committee on Legislative Franchises unanimously junked Wednesday House Bill No. 4101, sponsored by Abang Lingkod party-list Rep. Joseph Paduano that seeks to renew PECO’S 25-year franchise.

The franchise of the firm, which has been providing electricity to the city since 1923, expired last Jan. 19.

In leading the objection to the renewal of PECO’s franchise, Iloilo City Rep. Julienne Baronda said the firm has not done enough to improve its services.

“I have seen the highs and lows of PECO’s service. I have seen and heard the Ilonggos’ lamentations. Ninety-six years is a long time and is more than enough opportunity to perfect one’s act,” Baronda said.

Baronda instead endorsed MORE Electric and Power Corp. (MORE Power), the firm owned by billionaire Enrique Razon Jr. that was granted a franchise last February.

Baronda said granting PECO a franchise would create an additional legal problem.

PECO Administrative Manager Marcelo Cacho earlier said its franchise renewal application does not mean that MORE Power’s franchise would be dissolved. Cacho explained that customers in the city can have two choices.

Despite being given a franchise MORE Power has not started operations since it does not have a power facility. It filed an expropriation case in court to take over PECO’s assets.

PECO assures it will continue to distribute electricity to consumers while the legal dispute has not been resolved.