SC upholds grant of franchise to MORE Power in Iloilo City

MANILA, Philippines — The Supreme Court (SC) has upheld the grant of the power franchise in Iloilo City to the Razon-led More Electric and Power Corp. last year, overturning a lower court’s ruling on the expropriation of the former distribution utility’s assets.

SC spokesperson Brian Hosaka said the SC en banc ruled eight votes to six in favor of MORE Power, affirming the company’s authority as Iloilo City’s distribution utility.

The decision overturned the Mandaluyong Regional Trial Court’s ruling in July 2019 that the expropriation of the assets of the former distributor, Panay Electric Co., was illegal.

MORE Power secured its congressional franchise to operate the electricity distribution system of Iloilo City in February 2019.

In March, the company began the takeover of PECO’s distribution assets, emphasizing that this is in line with the writ of possession issued by the Iloilo City Regional Trial Court and implemented by the Iloilo City Sheriff’s Office.

Acting on PECO’s petition, the Mandaluyong RTC declared as unconstitutional Sections 10 and 17 of Republic Act 11212 which gave MORE the power of eminent domain and the power to expropriate or acquire the private assets of PECO including poles, wires, cables, transformers, switching equipment, stations and buildings, machinery and equipment which it uses in its operations.

The power of eminent domain is the power of the government to take over any property to provide the public with vital services in exchange for a fair and just compensation. Electricity distribution utilities and electric cooperatives are given this power so they could perform the services assigned them to provide to the public through the congressional franchise.

“We applaud the Supreme Court for making this decision and by standing alongside the advocacy of the people. The ruling, more than anything else, is a clear message by the High Tribunal that nothing is over and above the welfare of the general public. This is definitely a major win for all of us, most especially for Iloilo power consumers who spent years, decades even, putting up with all the unbridled violations and inequities of the former utility distributor,” MORE Power president and CEO Roel Castro said.

“Rest assured that MORE Power will continue working to improve and modernize the distribution system as we carry forward the tradition of noble public service Ilonggos have every right to demand for and which they fully deserve,” he said.