Power franchise issue before the Senate

Published October 22, 2018, 8:07 AM

https://news.mb.com.ph/2018/10/22/power-franchise-issue-before-the-senate/

The Senate Committee on Public Services headed by Sen. Grace Poe meets today to look into a controversy that threatens to disrupt the electric power services in Iloilo City and other parts of Iloilo province.

The Panay Electric Co. (PECO), established in 1923, has been providing electric power in the city for nearly a century. Over 14 months ago, on July 22, 2017, it applied for renewal of its legislative franchise through House Bill 6023 filed in the House of Representatives. A year later, a rival House Bill No. 8132 was filed in behalf of More Minerals Corporation to operate an electric power distribution service in Iloilo.

The committee decided to award the franchise to the new corporation due to the alleged failure of PECO to refund P631 million in over-billings to its customers. The Energy Regulatory Commission later denied that it had investigated the PECO and castigated it for the alleged overbilling.

There is now fear that the House committee’s decision could lead to a power crisis in Iloilo as one company could be awarded a franchise to provide elecricity services but does not have the facilities to operate, while another has the facilities but no government permit. There is concern that unless the stalemate is resolved, the province will be plunged into darkness.

In a recent interview, Senator Poe said she had indeed received various complaints about the service of the present franchise holder, but officials of the company said it was doing its best to fast-track the improvement of its services. They said they hope the Senate will be more transparent in its decision on the issuance of a legislative franchise for Iloilo.

The danger, according to Anak Mindanao party-list Congressman Makmod Mending, is that non-renewal of the present firm’s franchise may result in power disruption in Iloilo City as it owns all of the present power facilities, including the plants down to the electric posts and wires. A provisional extension of one or two years would make for a smooth transition in case another firm takes over, he said.

The House committee has already made its decision and the matter is now before the Senate committee of Senator Poe. Unless the stalemate is resolved, the province may be plunged into darkness. But there is general confidence that the Senate will be able to resolve this issue with justice for all concerned.