ERC allows PECO to continue power service in Iloilo

MANILA, Philippines — The Energy Regulatory Commission (ERC) has allowed Panay Electric Co. Inc. (PECO) to continue distributing electricity in Iloilo City until Razon-led MORE Power and Electric Co. takes over.

ERC granted a provisional certificate of public convenience and necessity (CPCN) to PECO to ensure uninterrupted supply of electricity in Iloilo City.

The decision to grant provisional CPCN was based on Republic Act 11212, which grants MORE Power a franchise to establish, operate, and maintain a distribution system is Iloilo City and to ensure the continuous and uninterrupted supply of electricity in the franchise area.

“Under the law, we (the ERC) are authorized to grant PECO the necessary provisional CPCN during the interim period or until MORE Electric and Power Co. (MORE), the legislative franchisee, has established and can fully operate its own distribution system,” ERC chairperson and chief executive officer Agnes Devanadera said. 

Section 17 of RA 11212 specifically provides that PECO shall in the interim be authorized to operate the existing distribution system within the franchise area, as well as implement its existing power supply agreements with generation companies that had been provisionally or finally approved by the ERC.

PECO shall operate the distribution system until the establishment or acquisition by the grantee, MORE Power of its own distribution system and it completes its two-year transition towards full operations.

Devanadera, however, clarified that the provisional CPCN does not extend PECO’s franchise, which could only be done by Congress.

“I would like to underscore the provision of the law that the provisional CPCN granted to PECO during the transition period shall not be construed as extending the franchise of PECO which expired on Jan. 18, 2019,” she said.

“MORE, on the other hand, can exercise its right of eminent domain whereby it may acquire such private property that is actually necessary to enable it to perform its obligation to provide uninterrupted supply of electricity in Iloilo City,” Devanadera said.