Danessa Rivera (The Philippine Star)
- March 10, 2019 - 12:00am
MANILA, Philippines — The Department
of Energy (DOE) remains ready to take over Iloilo City’s power distribution
service in the event the transition between Panay Electric Co. (PECO) and new
player MORE Power and Electric Co. go south.
Energy Secretary Alfonso Cusi said
the agency is prepared to continue the power service in Iloilo City in case the
two parties involved fail to resolve their dispute.
On March 6, PECO filed a petition
for temporary restraining order (TRO) or writ of preliminary injunction with
the Mandaluyong Regional Trial Court (RTC) as it challenged the validity of a
congressional franchise given to MORE Energy led by Enrique Razon.
MORE Power president and chief
executive officer Roel Castro said the company has yet to receive the summon
from the Mandaluyong RTC. “Our legal team is looking into it,” he said.
PECO is also asking the court to
stop government agencies involved in implementing Republic Act 11212 while the
validity of the law is being challenged and heard.
RA 11212, which grants the franchise
to MORE Energy, allows the new player expropriate PECO assets under Sections 10
and 17.
PECO said this violates its right to
due process and constitutional right to equal protection of the law.
It argued that “the authority
granted to MORE for taking PECO’s assets is arbitrary and confiscatory” and
“the law authorizes taking that is not for a public purpose.”
PECO said seizing its assets for the
benefit of MORE Energy, which has stated early on that it does not have any
facilities to begin with, is equivalent to confiscation of property that may
not be done by government or delegated to a private entity.
“The assailed provisions of RA 11212
is not so much the grant of the power of eminent domain, but rather the scheme
by which the law was used in a not-so-subtle attempt to unduly interfere with
PECO's rights,” PECO said.
PECO’s franchise expired last Jan.
19 and was not renewed by Congress. However, it was allowed to continue
distributing power to Iloilo City as agreed by the DOE and ERC to ensure
continued power service in the franchise area.
This is based on the certificate of
public convenience and necessity issued by then Energy Regulatory Board (ERB),
ERC’s predecessor office to PECO on May 31, 1996 effective until May 25.
The CPCN is the authorization issued
by the ERB/ERC to entities engaged in the transmission or distribution of
electricity for the operation of a transmission or distribution system.
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