DOE, ERC prepared to take over Iloilo power service

MANILA, Philippines — The Department of Energy (DOE) and Energy Regulatory Commission (ERC) are prepared to take over the power distribution service of Iloilo City once the franchise of the existing utility expires.

“Energy Secretary Alfonso Cusi said the ERC would cover “some legal matters” while the DOE would take over “technical and operation matters.”

However, both agencies have yet to finalize a timeline on when the takeover will happen.

“(It’s still) not certain. We will see,” Cusi said.

The franchise of PECO, which has been in the business for 95 years, expires on Jan. 19.

Congress did not renew its franchise due to bad service, high power rates and inefficiency.

Meanwhile, the franchise of new player MORE Power and Electric Co. has been cleared by Congress late last year. However, the consolidated bill granting the franchise for Iloilo City to MORE Power has yet to be submitted for signing by the President.

MORE Power, led by billionaire businessman Enrique Razon Jr., has provided the new utility firm a P2 billion capitalization to improve the distribution service in Iloilo.

Sen. Sherwin Gatchalian earlier said he would ask the DOE to lay down its contingency steps for the takeover of Iloilo City’s power service, which covers 60,000 connections.

This is to ensure a smooth transition and continued power service in Iloilo until a franchise for utility power distributor is finalized or awarded, he said.

The Private Electric Power Operators Association (PEPOA)—the country’s umbrella group of private power distributors—had previously raised concern over the power crisis in Iloilo if the franchise of the existing power utility in the island is not renewed and is instead given to a new applicant without infrastructure.

DOE had expressed its intent to take over the power distribution services amid the impasse.

Cusi earlier said the DOE and the National Electrification Administration organized a task force to take over in case there would be no settlement.