By:
Nestor P. Burgos Jr. - 05:02 AM March 16, 2019
ILOILO CITY — Panay
Electric Co. Inc. (Peco) welcomed the issuance of a temporary restraining order
(TRO) barring a new power distributing firm, controlled by ports mogul Enrique
Razon, from taking over Peco facilities to distribute electricity in the city.
In a statement, Peco
said the 20-day TRO issued by the Mandaluyong Regional Trial Court (RTC)
against More Electric and Power Corp. (More Power) was a “first step toward
finally giving due process to an otherwise process-less exercise.”
“The courts can now meticulously examine
multiple unconstitutional provisions in the More [franchise] and decide on what
is a first in the entire history of utilities and which could set a precedent
for future decisions,” said Marcelo Cacho, Peco administrative manager.
Injunction
Cacho said Peco was
hoping that an injunction would be issued by the court, too, while the
constitutionality of the franchise was being resolved.
In the five-page TRO,
the Mandaluyong RTC Branch 209 barred More Power, the Energy Regulatory Commission
(ERC) and the Department of Energy (DOE) from enforcing Republic Act No. 11212.
The law, which took
effect on March 6, granted a 25-year franchise to More Power and authorized the
firm to “establish, operate and maintain” an electric power distribution system
in Iloilo City.
The TRO takes effect
upon payment of a P5-million bond by Peco.
Peco deposited the bond
on Wednesday, according to Cacho.
Prohibition
More Power said it
would abide by the TRO which was issued less than a week after its franchise
became effective.
The company did not
want to issue further statements saying the issue is already in court.
The order issued by
Judge Monique Quisumbing-Ignacio barred More Power from commencing
expropriation proceedings and taking over Peco’s distribution assets.
It also prohibited the
ERC and the DOE from issuing a certificate of public convenience and necessity
for More Power to operate.
Irreparable injury
More Power, the
decision said, “can easily take away, under the guise of eminent domain” Peco’s
facilities.
It said the TRO was
necessary to prevent “the infliction of irreparable injury to Peco.”
The court also set a
hearing on April 2 to determine whether the TRO will be converted into a writ
of preliminary injunction.
The Peco petition was
followed by an expropriation case filed by More Power in Iloilo City to seize
Peco’s assets.
The case covered
buildings, machinery, equipment, office furniture, computers, software and
vehicles that More Power wanted to seize from Peco.
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