Consumer group urges SC to resolve MORE, PECO franchise dispute

Consumer rights group Koalisyon Bantay Kuryente (KBK) on Saturday urged the Supreme Court (SC) to resolve the dispute between warring power distributors MORE Electric and Power Corporation (MORE) and Panay Electric Company (PECO) in the Iloilo City franchise area.

In a virtual forum on Saturday, Allen Aquino, KBK coordinator, said that a speedy resolution to the case by the Supreme Court was imperative.

“Each day of delay is causing Iloilo City, its families and businesses, to lose ground in the recovery of its economy as well as the people’s return to normalcy,” Aquino said.

As he described the city’s situation, “Iloilo has suffered more than 400 hours of power failures that plunged us into darkness since February up to June. Very recently, another series of brownouts, lasting a total of 678 minutes from August 7-11 alone, plunged our city into darkness yet again.”

PECO and MORE have locked horns over the right to be Iloilo City's power distribution utility. In 2019, PECO's congressional franchise expired, and at the same time lawmakers granted the franchise to MORE.

PECO has been Iloilo City's power distributor for 95 years. When MORE was granted the franchise in 2019, PECO went to court to question provisions in MORE's franchise that would supposedly allow the Razon-owned firm to expropriate its assets.

The SC is set to deliberate on the power dispute between PECO and MORE next week.

KBK said the high court’s ruling will set a “huge precedent” for Philippine businesses as well as foreign direct investment (FDI) coming into the country.

For its part, PECO’s legal counsel, Atty. Estrella Elamparo claimed that MORE’s hostile takeover of the electrical facilities of the almost century-old legacy company was unconstitutional and illegal.

“If the MORE position is affirmed by the courts, it will be followed by others who are not qualified and are not deserving to be granted a franchise by Congress,” Elamparo said.

In a March 5, 2020 order, the ERC said it revoked PECO's CPCN “after determining that MORE has established or acquired its own distribution system and verified MORE’s complete transition to full operations."

In a motion for reconsideration filed before the ERC, PECO urged the ERC to revoke the provisional CPCN issued to Razon-led MORE Electric Power Corporation, saying that it was not supported by verified documents.

For his part, Constitutional expert and Ateneo School of Government Dean Tony La Viña, who has been following the MORE-PECO case for years, attributed the power failures and overbilling that the Ilonggos were suffering to Congress’ failure to follow the legal “criteria for giving a franchise which is supposed to be for the public interest.”

“The franchise for a major electrical system was given to a company that has no experience in delivering electricity. That creates a problem for the city,” said La Viña.

“This will make the situation for investors, especially in the utilities industry like water and power, very tense. There is no protection for your investments, domestic and foreign, if this kind of legislature is allowed. This development will be a blow to FDI.” — DVM, GMA News