Another power battle

Locked in a protracted legal battle to take-over the power distribution assets of 97-year-old Panay Electric Co. (PECO), the same group that was able to secure a congressional franchise to supply power in Iloilo City and three other municipalities is now setting its sights on another electric company, this time based in Palawan.

It will be recalled that MORE Power, owned by businessman Enrique Razon, earlier secured a congressional franchise to distribute electricity in Iloilo City and nearby areas. However, it has yet to secure a certificate of public convenience (CPCN) from the Energy Regulatory Commission and is currently battling a case filed by PECO preventing MORE from expropriating the former’s assets.

In the meantime, PECO was allowed to continue distributing electricity by the ERC and Department of Energy in the interim until all legal issues are resolved, including the expropriation case filed by MORE before the Iloilo Regional Trial Court to acquire PECO’s assets for P480 million.

According to reports, during the last Congress, House Bill 8829 was filed by Palawan Reps. Frederick Abueg and Gil Acosta for the grant of a 25-year congressional franchise to MORE Reedbank Corp., a subsidiary of Prime Metroline Holdings Corp. where Razon sits both as board chairman and chief executive officer, to distribute electricity in Palawan.

Although the bill was not acted upon during the 17th Congress, it is expected to be refiled when the 18th Congress opens its sessions this month. The bill reportedly has the full backing of Palawan Governor Jose Alvarez and other provincial officials.

At present, it is 45-year-old Palawan Electric Cooperative (Paleco) that has the franchise to distribute electricity in the province. But Razon’s group is expected to encounter less difficulty in taking over Paleco which had been included in the list of some 17 electric cooperatives nationwide which are underperforming, and financially and technically distressed.

Paleco is a non-stock, non-profit electric cooperative established in 1974. Its last registration with the Cooperative Development Authority (CDA) in 2010 gave it a term of another 50 years while its franchise as a power distributor will expire in 2029, according to its board chairman, Jeffrey Tan-Endriga.

Paleco’s service area includes Puerto Princesa City and the towns of Aborlan, Narra, Espanola, Brookes Point, Bataraza, Quezon, Rizal, Balabac Island, Roxas, San Vicente, Taytay, El Nido, and the islands of Dumaran, Araceli, Cuyo, Magsaysay and Cagayancillo.

According to reports, Paleco is owned by its residential and commercial customers who have been receiving meager dividends.

These same customers are questioning why Reps. Abueg and Acosta or the provincial chief executive never bothered to consult their constituents prior to the filing of the bill. It is expected that just like the owners of PECO, those behind Paleco will also exercise their legal remedies to stop the MORE group from taking over.

The reports also revealed that the bill was filed on the same month that Department of Energy (DOE) chief Alfonso Cusi sent a letter to Congress, calling for the revocation of the franchises of 17 existing electric cooperatives in the country, include Paleco’s, due to underperformance as well as financial and technical problems. Cusi reportedly later withdrew his position and instead approved the creation of Task Force Palawan Power to conduct a comprehensive audit of Paleco.

While Paleco’s fate appears to be sealed already, PECO’s is a different story.

PECO has criticized reports saying that the President plans to intervene to make sure that MORE is allowed to expropriate PECO’s assets.

PECO administrative officer Marcelo Cacho said in a media interview that reports that no less than Duterte plans to ask the Supreme Court to not use the TRO mode to prevent MORE from expropriating PECO’s assets are not true.

Cacho said while the Chief Executive statement in his 2017 State-of-the-Nation Address cautioned the SC on the issuance of a TRO against the government’s reproductive health program and in the implementation of vital government projects, many of which were delayed to the detriment of public service and convenience due to the issuance of TROs by certain courts, nowhere in that speech did the President say that even on private matters where the crucial issue of justice and legality are involved, he wants the courts to abstain from protecting the constitutional rights of any of the involved parties.

Not so hidden agenda

SKAL International Makati chairman Robert Lim Joseph and president Jaime Bautista announced the 2019 SKAL Tourism Personality Awardees in connection with their 38th Founding Anniversary celebration and 29th SKAL Tourism Personality Awards on Aug. 22 at the New World Hotel Makati.

According to Bautista, former Philippine Airlines president, this annual prestigious awards are given to persons who gave their utmost services to promote and develop tourism industry.

Awardees this year include Philippine STAR president and CEO Miguel Belmonte who will be conferred the SKAL Star Legacy Award, Emmanuel Gonzalez of Plantation Bay Resort and Spa (food tourism award), Environment and Natural Resources Secretary Roy Cimatu for eco tourism, Interior and Local Governments Secretary Eduardo Año and Tourism Secretary Bernadette Romulo Puyat for eco-tourism, Suzie Moya Benitez of Bayanihan (heritage and cultural tourism), Corregidor Foundation Inc. chair and CEO Cynthia Carrion for historical tourism development, Pampanga Vice Governor Lilia Pineda for domestic tourism development, Globallink MP Events CEO Patrick Lawrence Tan for exhibition tourism, SM Hotels and Convention president and chair Elizabeth Sy (hotel awards), Manila Bulletin’s Arnel Patawaran for print media, PAL’s Dina May Flores (airline category), Kamia Bay’s Michelle Tiotangco (resort category), MAD Travel’s Rafael Dionisio for cultural and ecological adventure tourism, Eat Bulaga’s Ms. Millenium Philippines for TV program segment and Jaime Bautista (SKAL leadership award category).

SKAL is a professional organization of tourism leaders around the world, promoting global tourism and friendship and is the only international group uniting travel and tourism executives at the local, national, regional and international levels to discuss and pursue topics of common interest.

SKAL International has over 15,000 members in 356 clubs in 85 countries. Its general secretariat is based in Torremolinos, Spain.

For comments, e-mail at [email protected]