PECO slams MORE's attempt to take over of power distributor’s assets

Panay Electric Company (PECO) on Friday slammed what is said was More Electric and Power Corporation's (MORE) attempt for an "irregular" takeover of the former's power distribution assets through a "questionable order and writ from the Iloilo Regional Trial Court (RTC)."

PECO was referring to the order issued by Judge Emerald Kuizon Requina-Contreras of the Iloilo Regional Trial Court Branch 23, and currently being contested by PECO before the Court of Appeals through petition for certiorari with a request for a temporary restraining order (TRO) or a writ for preliminary injunction.

PECO noted a separate trial court judgment from a Mandaluyong Court that had invalidated expropriation provisions of Republic Act 11212 which granted the franchise to MORE. A petition filed by MORE challenging that judgment is currently pending with the Supreme Court.

"Contrary to what’s being circulated via publicity by MORE, it will be highly irregular at this point to insist on the takeover pending resolution of the motion for clarification that PECO has filed with the RTC of Iloilo to define the parameters of the implementation and, more importantly, in view of the Petition for Certiorari with prayer for TRO that has been filed with the Court of Appeals," PECO legal counsel Divina Law said in a statement.

"MORE cannot jump the gun and pre-empt the ruling on our application for TRO," it added.

The statement further said: "The premature takeover not only is unjust, irregular and unwise, it will plunge the city of Iloilo into darkness."

PECO Head of Public Engagement and Government Affairs Marcelo Cacho, for his part, said "allowing MORE to take over on the basis of a highly questionable expropriation is most unjust."

“It will also cause irreparable injury and massive damage to the City of Iloilo and its stakeholders, given that the parameters for the implementation of the writ are yet to be clarified by the court,” he added.

As the legal issue is being addressed, the PECO assured the public that it would "responsibly continue to provide service to the City" and "vigorously pursue all legal remedies to set aside the order."

The Iloilo electricity provider for more than 95 years maintained that the Iloilo RTC order and writ were unjust and impractical, because another court had already declared the unconstitutionality of the franchise of the Razon-owned company.

Last year, the PECO paid about P135 million to the City Government of Iloilo to settle the company's real property tax (RPT) obligations. 

According to PECO, the payment effectively averts the Iloilo LGU's planned auction of PECO's properties on December 12, to cover the real property tax of the company.

Meanwhile, MORE President Roel Castro questioned how the attempted takeover was unconstitutional and unjust when the court had issued them a writ of possession.

"The SC issued a TRO on decision of the Mandaluyong RTC where it was PECO who files that case," he told GMA News Online in a text message.  He was referring to the trial court judgment which PECO previously mentioned in its statement. — Angelica Y. Yang/MDM, GMA News