Tuesday, March 10, 2020

ERC asked to reverse ruling on takeover of Iloilo power utility


Published March 9, 2020, 10:00 PM By MYRNA M. VELASCO

The Energy Regulatory Commission (ERC) is being asked to reverse its ruling on the issuance of provisional approval for a certificate of public convenience and necessity (CPCN) to the Razon group’s MORE Electric and Power Corporation, which essentially affirmed its takeover of power substation assets duly owned by Panay Electric Power Company.
The motion for reconsideration was filed on Monday (March 9) with the ERC by PECO legal counsel Estrella Elamparo, with her noting that the takeover of the assets had been illegal because such had been achieved by alleged misrepresentations of MORE Power.
She said they are batting for a hearing of the urgent motion on Wednesday (March 11) this week, “so we can unmask all the falsities that were foisted by MORE before the ERC, and hopefully, the ERC will be similarly incensed by having been misled by MORE into issuing that provisional authority.”
In the same order that was issued by the ERC last March 5, it revoked the CPCN it previously issued to PECO, which became the Cacho-owned power utility firm’s license in continually operating its facilities and extending services to customers in Iloilo City – that as its franchise had expired in January 2019.
Elamparo noted in the provisional authority issued to MORE Power last week, “there was not a single document – verified or authenticated document that has been submitted,” with her emphasizing that “we understand why because there’s nothing that they can produce, except their misrepresentations.”
Taking premise from that then, the PECO lawyer said “we ask the ERC to immediately reverse that order that was issued.”
In addition, PECO told reporters that it filed a motion with the Court of Appeals “to resolve our motion for TRO (temporary restraining order) because of the continuing atrocities, especially with the affirmation by the RTC (regional trial court) of Iloilo that the takeover that happened was contrary to its own order for PECO to continue operating the facilities.”
Elamparo explained that based on an addendum sanctioned by the local court in Iloilo, it is still PECO that has been vested with the power to continually operate and service the electricity requirements of end-users in the area.
PECO Administrative Manager Marcelo Cacho indicated that it has not been “more power,” but there had been “more confusion” being hurled against consumers in Iloilo City, because of MORE Power’s recent incursion in which they have been cornering applications for connection with them, even if their entire service chain is not yet in place.
He noted that MORE Power claims of having its own power supply portfolio and it is even procuring supply from the Wholesale Electricity Spot Market (WESM), but Cacho noted when they had it checked with the WESM, “More Power has pending application for registration, but still has lacking documents,” hence, its registration as a trading participant in the spot market had not secured any approval yet.

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