AFTER SC SIDES WITH RAZON FIRM

PECO to pursue all legal remedies, maintains MORE takeover unconstitutional

After losing its legal battle with Razon-led MORE Electric and Power Corp. before the Supreme Court, Panay Electric Co. (PECO) is far from giving up as it still plans to exhaust all legal means.

“Although this is a massive hurdle, we will not give up on our fight and we will continue to pursue the available legal remedies to defend PECO’s constitutional rights,” PECO said in a statement through its corporate counsel DivinaLaw.

“Despite this temporary setback, we remain optimistic that we will ultimately be vindicated not just for PECO but for the people of Iloilo,” it said.

Voting 8-6, the SC en banc declared constitutional Section 10 and 17 of MORE's franchise, reversing the judgment of the Mandaluyong Regional Trial Court (RTC) Branch 209 that had invalidated these provisions in 2019.

Iloilo City's longtime power distributor, PECO, had alleged that these provisions would allow MORE to expropriate its assets.

The long-time Iloilo City power distributor also claimed that the tight vote by the Supreme Court, in favor of MORE, supports its position that the takeover of PECO’s properties is "not the exercise of eminent domain contemplated by our laws, but a violation of constitutional rights."

“It was a close vote on a novel issue that had never been raised before our Highest Court, but will certainly have reverberating consequences that open the power of expropriation to abuse,” PECO said.

“The ponente proceeded with the decision just days before his retirement from the judiciary,” it said.

PECO went to court last year to question provisions in the MORE franchise that would supposedly allow the Razon company to take over its assets, including its poles, wires, cables, transformers, infrastructure, and equipment.

PECO scored the first win in the legal saga last year after the Mandaluyong RTC  invalidated the expropriation provisions in MORE's franchise. 

MORE appealed and secured a temporary restraining order from the SC against the trial court's ruling.

Last March, PECO claimed that MORE initiated expropriation proceedings in Iloilo even when the SC case was still pending.

PECO accused MORE of the alleged "forcible, deceptive, and intimidating" takeover of its stations and facilities earlier this year.

Also last March, the Energy Regulatory Commission revoked PECO's certificate of public convenience and necessity “after determining that MORE has established or acquired its own distribution system and verified MORE’s complete transition to full operations.”—AOL, GMA News