SC affirms MORE’s authority to distribute power in Iloilo

MANILA, Philippines — The Supreme Court upheld its decision, allowing Razon-led More Electric and Power Corp. (MORE Power) to expropriate the power distribution system in Iloilo City.

In an 18-page resolution released on Tuesday, the SC voted 8-6 and affirmed its September 15, 2020 ruling which settled the dispute between MORE Power and Panay Electric Co. (PECO) over the control of Iloilo City’s power distribution business.

The high court upheld the constitutionality of Sections 10 and 17 of Republic Act 11212, which granted the power distribution franchise to MORE.

“Clearly, in granting MORE the right to exercise eminent domain, the primordial concern of Congress is the welfare of the residents of Iloilo City who rely on the distribution system of PECO. There is no question that PECO’s franchise was not renewed, thus, it can no longer operate the distribution system in Iloilo City,” the SC ruled.

“MORE as the new franchisee, is mandated under Section 2 of RA  11212 to operate and maintain the distribution system in the best manner possible. To be able to do so, its right to expropriate the distribution system in Iloilo City to ensure uninterrupted supply of electricity should not be hampered by unfounded allegations of undue benefit and corporate takeover,” it said.

The high court did not give weight to the arguments raised by PECO in its motion for reconsideration saying that these “have been squarely and extensively” discussed in its Sept. 15 ruling.

MORE said PECO lost its right to occupy public streets and skyline when its franchise expired, thus, had the obligation to uproot, dismantle and remove its posts, wires, transformers and electric meters.

The Razon firm said requiring it to build a new distribution system is anti-consumer and would deny the consumers of Iloilo City their right to continued service. – Evelyn Macairan