SC upholds decision allowing Razon firm to run Iloilo’s power distribution system

The Supreme Court (SC) has upheld its decision siding tycoon Enrique Razon's MORE Electric and Power Corp. (MORE) in a legal battle over power distribution in Iloilo City.

Voting 9 to 6, the Court dismissed the motion for reconsideration filed by Panay Electric Company, Inc. (PECO), Iloilo’s former longtime power distributor, which had questioned the tribunal’s September 2020 ruling in favor of the expropriation provisions in MORE's franchise.

PECO had alleged that these provisions would allow MORE to seize its assets, adding a franchise merely pertains to the privilege granted by the government and “not synonymous to ownership of the facilities used.”

However, the SC said it was beyond its power “to question the wisdom of Congress in granting the franchise to MORE.”

“The Court cannot venture into this because that would mean violating the deep-rooted principle of separation of powers. Thus, Sections 10 and 17 of Republic Act 11212, giving MORE the power to expropriate the distribution system of PECO, are but integral parts of the grant of the franchise by Congress,” the resolution stated.

“Since the exercise of eminent domain is necessary to carry out the franchise, it is prudent that the Court accords respect to the legislative will.”

According to the Court, the franchise mandated MORE to operate and maintain the distribution system until 2044 in the “best manner possible.”

“To be able to do so, its right to expropriate the distribution system in Iloilo City to ensure uninterrupted supply of electricity should not be hampered by unfounded allegations of undue benefit and corporate takeover,” it said.

Associate Justice Rosmari Carandang wrote the March 9 resolution that was released to the public only on Tuesday.—AOL, GMA News