Iloilo gets new power distributor

 May 27, 2021 12:20 AM By Alvin Murcia

https://tribune.net.ph/index.php/2021/05/27/iloilo-gets-new-power-distributor/

 

The Supreme Court (SC), on a 9-6 vote released on Tuesday, gave tycoon Enrique Razon’s More Electric and Power Corp.’s (MORE) control of the energy distribution in Iloilo.

With the decision came with the approval for MORE to expropriate properties of the present power distribution system in Iloilo owned by Panay Electric Company Inc. (PECO).

PECO has been the province’s power distributor since 1923.

The vote was made via an 18-page resolution that affirmed the High Court’s 20 September 2020 decision that settled the dispute between MORE and PECO over control of the power distribution business in the province.

The High Bench upheld the constitutionality of Sections 10 and 17 of Republic Act (RA) 11212 (MORE’s franchise) in affirming the decision.

It gives MORE the power of an eminent domain, and to expropriate any asset, including existing distribution assets in the city.

“Clearly, in granting MORE the right to exercise eminent domain, the primordial concern of the Congress is the welfare of the residents of Iloilo City who rely on the distribution system of PECO. There is no question that PECO’s franchise was not renewed, thus, it can no longer operate the distribution system in Iloilo City,” the SC ruled.

“MORE as the new franchisee is mandated under Section 2 of RA No. 11212 to operate and maintain the distribution system in the best manner possible.

To be able to do so, its right to expropriate the distribution system in Iloilo City to ensure uninterrupted supply of electricity should not be hampered by unfounded allegations of undue benefit and corporate takeover,” it added.

PECO’ motion for reconsideration, saying that these “have been squarely and extensively” discussed in its 15 September ruling, was not given weight by the court.

In opposing PECO’s appeal, MORE argued that its rival has no absolute discretion on how and when to dispose of its distribution assets since these are regulated assets established for the sole purpose of supplying electricity to end-users in Iloilo City.

MORE added that PECO lost its right to occupy public streets and skyline when its franchise expired, thus has the obligation to uproot, dismantle and remove its posts, wires, transformers, and electric meters.

The power firm said that to require it to build a new distribution system is anti-consumer and would deny the consumers of Iloilo City their right to continued service.

The SC, in siding with MORE, ruled that the authority granted to MORE under its franchise to expropriate the existing distribution system of PECO is a valid delegation of power.

“The power of eminent domain is exercised by the legislature. However, it may be delegated by Congress to the President, administrative bodies, local government units and even to private enterprise performing public services,” the Court said.