MORE earmarks P1.7 billion for Iloilo’s 3-year electricity distribution upgrade

By Lenie Lectura - October 29, 2019

https://businessmirror.com.ph/2019/10/29/more-earmarks-p1-7-billion-for-iloilos-3-year-electricity-distribution-upgrade/

MORE Electric and Power Corp. (MEPC) is earmarking P1.7 billion in the next three years to modernize the electricity distribution facilities in Iloilo City.

MEPC President Roel Castro said the amount will fund the distribution utility firm’s system reliability projects, systems loss reduction projects, systems capacity projects and safety improvement projects.

The programmed spending comes after it secured a franchise from Congress in December last year.

MORE has sought to expropriate all the aging distribution network of Panay Electric Co. (Peco) in Iloilo after President Duterte signed its franchise into law as Republic Act 11212, authorizing MORE to take over all and any facility and property to ensure Iloilo City and nearby municipalities of continuous supply of electricity.

MORE had secured the expropriation order from the Iloilo City Regional Trial Court in line with the provisions of RA 11212 and the Electric Power Industry Reform Act, or Epira, Castro said.

Peco last week announced that it has earmarked P1.1 billion in the next 10 years for its innovation spending aimed at building and promoting sustainable energy practices in Visayas.

Peco was earlier allowed by the Energy Regulatory Commission to continue distributing electricity up to two years to ensure uninterrupted supply of electricity in Iloilo City.  The provisional certificate of public convenience and necessity  issued to Peco is valid until MEPC has established and can fully operate its own distribution system.

But according to MEPC, Peco’s P1.1-billion planned investment is a decade late.

“If Peco spent that amount 10 years ago, the Iloilo City Council would not have passed a resolution asking Congress to find a new distribution utility to manage the city’s electricity distribution system and the Senate and the House of Representatives would have renewed its franchise that expired this year. Instead, Congress granted the franchise to MORE and President Rodrigo Duterte signed it into law,” Castro pointed out.  He said Peco “more or less” owes Ilioilo consumers the same amount the former plans to invest.

“What the consumers in Iloilo are paying since years ago already includes that P1.1 billion which they did not invest in the past. So, it’s just right that they will pump it in because they owe it to the consumers. In fact, they have to spend that in 10 weeks, not 10 years,” said Castro.