Firm threatens to shut down power in Iloilo

By WILLIAM DEPASUPIL, TMT November 18, 2018

https://www.manilatimes.net/firm-threatens-to-shut-down-power-in-iloilo/469242/

ILOILO City’s power provider, Panay Electric Co. (PECO), has warned that the city will plunge into darkness next year as it will shut down operations if its franchise is not renewed.

Consumers call the warning as blackmail.

The PECO, through its counsel Inocencio Ferrer, said residents should blame the House of Representatives and the Senate, as well as Malacañang, if they will experience power blackouts in 2019.

He added that the power provider will not sell its assets to rival MORE Electric and Power Corp. (MORE Power) and would explore all legal means to prevent expropriation of its distribution lines and systems by the new franchise holder.

The House and the Senate recently awarded MORE a legislative franchise to operate a distribution utility in Iloilo City while the PECO’s franchise bill stays in Congress.

During a hearing by the Senate Committee on Public Services headed by Sen. Grace Poe on October 22, it was found that the PECO has been operating without a legislative franchise, which is a clear violation of the Epira Law.

Meanwhile, city officials, through Councilors Johua Alim and Plaridel Nava, said it was an empty threat for PECO to blackmail Congress and Malacañang into giving it a new franchise.

“No one here in Iloilo City is scared of the PECO’s threat because the government, through the Department of Energy (DoE) and the Energy Regulatory Commission (ERC), could take over the facilities of the PECO by virtue of their oversight and eminent domain powers,” Alim noted.

He said the power provider was not granted a new franchise by the House and the Senate because of its long record of bad service and abuse of its status as a monopoly.
Nava added that for 95 years the PECO “has been abusive and arrogant with no concern for the welfare of Iloilo residents.”

The DoE and the ERC assured that there would be a smooth transition to ensure continuous electricity supply in the city.

On November 8, a Technical Working Group was convened by the Senate to handle the transition plan between the PECO and MORE Power but the former did not send a representative and instead threatened to plunge Iloilo City into darkness in January.