Groups laud SC ruling on power franchise

MANILA, Philippines — Business and political groups in Iloilo City lauded the recent Supreme Court ruling that validated the grant of the city’s power distribution franchise to Razon-led More Electric and Power Corp.

“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.
Castro added that the SC decision also validates Congress’ power to choose the best company to provide vital public services through its franchising power as the entire Iloilo City and its 65,000 consumers are now assured of safe, quality and reliable electric service under MORE Power’s P1.8-billion program to modernize the Iloilo city distribution system, he said.

Iloilo Economic Development Foundation (ILEDF), the leading business group in the city, earlier batted for MORE Power’s takeover of the distribution facility, noting that a world-class power distribution system would reduce electricity rates and lower business’ operating costs, thus attracting the entry of more investors.

Iloilo City Rep. Julienne Baronda said Congress was confident early on that the SC would side with their decision, which went through the legal process, to give the franchise to a more worthy company.

“We were confident since the start that the High Tribunal will uphold the Congressional franchise. We know we were acting within our legislative powers and took into account the promise of better service” she 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.