Wednesday, March 4, 2020

PECO seeks CA status quo ante order, says MORE takeover was in ‘bad faith’


By Joel R. San Juan - March 4, 2020

THE camp of embattled Panay Electric Co. (Peco) on Tuesday said it would exhaust all legal remedies to regain control of the power distribution business in Iloilo City that has been taken over by Razon-led More Electric Power Corp. (MORE) by virtue of a court order.
At a press briefing, Peco’s legal counsel Estrella Elamparo told Justice reporters that the company has filed a supplemental motion before the Court of Appeals seeking the issuance of a status quo ante order to compel MORE to return to it the power distribution operation in Iloilo.
“We already filed in the Court of Appeals last Thursday a petition for certiorari questioning the order of the most recent judge, the order granting writ. Today we filed a supplemental petition and in that supplemental petition we asked that the status quo ante be maintained. When we say status quo ante, that is the last…status before the controversy erupted and that was when Peco was in complete possession still,” Elamparo said.
In its petition for certiorari, Peco prayed for the issuance of a temporary restraining order (TRO) to enjoin the implementation of the writ of possession issued by Ilolilo City Regional Trial Court (RTC) Judge Emerald Requina-Contreras last Wednesday against its distribution assets.
Peco sought the issuance of a TRO  before the CA in Cebu a day after Contreras issued the writ of possession.
However, the camp of MORE immediately went to Peco’s facility last Friday by virtue of the court’s writ of possession and took over its operations.
This prompted Peco to file a supplemental petition before the CA seeking the issuance of a status quo ante order.
Despite MORE’s takeover of the power distribution business in the province, Elamparo said Peco is still confident that the Supreme Court, where the issue on the constitutionality of Republic Act 11212  is pending.
Signed on February 14, 2019, by President Duterte, that law grants MORE a 15-year congressional franchise to distribute power in Iloilo City.
Sections 10 and 17 of RA 11212 granted MORE, as the new distribution utility in Iloilo City the powers of eminent domain and the power to expropriate any asset, including existing distribution assets, in the city.
MORE Power said it is ready to submit to the Iloilo City RTC its program for the complete takeover of the distribution facilities in the city, including the timelines on the transition period, accounting, turnover of records like the list of consumers, and documents relevant to the operation of the distribution system such as the inventory of personal properties under and inventory of real properties already under the possession of MORE Power.
MORE started the process of taking over Peco’s electricity distribution facilities after securing the 15-year franchise from Congress in 2019 following the expiration of Peco’s franchise on January 19, 2019.
MORE filed the expropriation case against Peco’s distribution assets after securing its congressional franchise.
“Definitely, it is not yet over. We are taking all the remedies that we could,” Elamparo said as she assailed what she called MORE’s hasty implementation of the court’s writ of possession, being a preemptive action.
“If you try to preempt a TRO, it is bad faith. What should happen is that the situation should be reverted before their act of preempting happened,” Elamparo explained.
Elamparo maintained that the takeover of Peco’s distribution assets by MORE is illegal, considering that there is still a pending issue before the SC on the constitutionality of the expropriation of its assets by MORE.
In December last year, the SC issued a TRO to stop enforcement of a July 1, 2019, order of the Regional Trial Court (RTC) of Mandaluyong City  that ruled as unconstitutional a provision in the franchise law given to  MORE that allowed the expropriation of assets, equipment and facilities of Peco.

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