MORE Power to invest P1 billion to improve Iloilo power distribution

MANILA, Philippines — More Electric and Power Corp (MORE Power) of port magnate Enrique Razon is investing more than P1 billion in Iloilo City’s power distribution network this year as it secured a permit from the Energy Regulatory Commission to operate the system.

MORE Power submitted its plans and strategies to the Department of Energy (DOE).

“I was informed that MORE submitted their documents recently and the power bureau is evaluating it,” Energy Secretary Alfonso Cusi said in a text message.

Based on the documents submitted, the company is putting in at least P1 billion to improve the distribution network, Energy Undersecretary Felix William Fuentebella said.

“They’re going to invest more than a billion pesos within the year to improve the distribution system,” he said.

Last year, MORE Power said it has set a budget of nearly P1.7 billion in the next three years to upgrade Iloilo City’s electricity distribution facilities.

The DOE will send a team to validate the power company’s plans.

“What I told MORE Power is we’re going to send a team within two weeks to inspect the state of the distribution utility,” Fuentebella said.

The inspection is necessary for the issuance of certificate of exemption to MORE Power so that it can sign power supply agreements with generating companies.

Earlier, the Energy Regulatory Commission (ERC) issued a provisional authority to MORE Power, authorizing it to operate the distribution network in Iloilo City. 

The grant of provisional authority to MORE Power effectively revoked the provisional Certificate of Public Convenience and Necessity (CPCN) that the ERC granted to Panay Electric Co. Inc. (PECO), the former electric power franchisee in Iloilo City.

This is despite the claim of PECO that the Razon-led firm does not have a CPCN, which it said was uncovered during a hearing at the ERC offices.

“The commission issued the provisional authority to protect consumer’s interest by ensuring uninterrupted electric service to consumers in Iloilo City and prevent chaos and confusion among customers as to who is authorized to operate the distribution system in the area,” ERC chairperson and CEO Agnes Devanadera said in a statement.

MORE Power submitted to the ERC a writ of possession (WOP) dated Feb. 27 and issued by the Iloilo City Regional Trial Court (RTC) Branch 23, authorizing it to take possession of certain properties of PECO in connection with the latter’s business of electric power distribution.

The ERC, through its technical personnel, conducted an ocular inspection on March 3 and 4 to verify the actual status of the distribution network and determine who is actually operating the said system. 

On the basis of the inspection report submitted by the inspection team, it was confirmed that MORE has gained full possession and control over the five substations, has prepared for all other aspects related to electricity distribution, and has power supply contracts in place with four power suppliers that will ensure continuous supply of electricity in the franchise area.  The ERC inspection team has also verified MORE’s readiness and capability in aspects of development, operation and maintenance of distribution systems.