By:
Nestor P. Burgos Jr. - 05:14 AM January 18, 2019
ILOILO CITY—With two
days before its 25-year franchise expires, the Panay Electric Co. (Peco) has
assured Ilonggos of continued and uninterrupted power supply in Iloilo City
amid the holding of the world-famous Dinagyang Festival.
“We made a commitment
to the city that there will be no power interruption. We will abide by that
commitment,” said Mikel Afzelius, Peco corporate communications officer.
Afzelius said Peco
would continue to operate despite its license’s expiration on Jan. 18 under a
certificate of public convenience and necessity (CPCN) which would be valid
until May this year.
The CPCN is the
authority granted by government agencies, including the Energy Regulatory
Commission, as a permit to operate public utilities.
Peco’s application for
a renewal of its franchise has been stalled at the House committee on
legislative franchises since it was filed on July 31, 2017.
Swift action
But a bill granting a
25-year franchise to the Razon-controlled More Electric and Power Corp. was
passed swiftly in the House needing only 12 calendar days after it was filed on
Sept. 26, 2018.
It was subsequently
passed in the Senate and a bicameral committee in December and will become a
law when President Duterte signs it or 30 days after it is transmitted to the
President.
More Power is a new
company that has no track record of power distribution.
Peco is the city’s lone
power distributor which supplies electricity to 55,000 consumers, including
residences and offices. Owned by the Cacho family, the company has been
operating in the city since 1923.
P700 million
In an earlier interview,
Roel Castro, More Power president, said the new firm was ready to take over the
power distribution in the city.
He said the company
planned to invest P700 million for a three-year rehabilitation program to
upgrade the assets of Peco. More Power is also ready to acquire the assets of
Peco.
Afzelius said, however,
that Peco would continue to push for the renewal of its franchise even after
the May 2019 elections if the current bill would not be enacted.
If the bill granting
the franchise to More Power becomes law, Peco will exhaust all legal remedy to
block the confiscation of its assets.
“We will not give up
our assets and facilities as there is no agreement [between the two companies]
on our selling of these assets,” he said.
Temporary
The new franchise bill
passed by the Senate and House provided for a two-year transition period
wherein More Power can establish or acquire its distribution system.
During the transition
period, Peco will be granted provisional authority to operate.
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