PECO lacks down its office building along General Luna Street in Iloilo City. (Photo by RMN-Iloilo)

Panay Electric Company (PECO) administrative manager Marcelo Cacho said there is a “big possibility” that the entire city of Iloilo will suffer from a power crisis if MORE Electric and Power Corp. (MORE Power) pursues the immediate takeover of their assets.

Sheriffs of the Iloilo City Regional Trial Court (RTC) served on Friday, Feb. 28, an order allowing MORE Power to take over the assets owned by PECO.

Cacho said they were shocked when the sheriffs, accompanied by police officers in riot gear, forcibly entered their office compound along General Luna Street in City Proper.

The sheriffs were also joined by officials and legal counsels of MORE Power.

Cacho, however, rejected the order issued by Iloilo City RTC Branch 23 Presiding Judge Emerald Requina-Contreras.

“Allowing MORE to take over on the basis of a highly questionable expropriation is most unjust. It will also cause irreparable injury and massive damage to the city of Iloilo and its stakeholders, given that the parameters for the implementation of the writ are yet to be clarified by the court,” he said.

Because of Cacho’s refusal to accept the order, the sheriffs decided to post it on the office building of PECO.

Lawyer Estrella Elamparo, PECO’s legal counsel, said the sheriffs “do not have the authority to insist or to force their way into the property because they do not have a break-open order [from the court].”

“I don’t know what control they have. It’s unprecedented, shocking, highly irregular. The issue of constitutionality is still pending at the Supreme Court and they (MORE Power) are trying to force their way,” she stressed.

“It is not true what I have been hearing that they have successfully taken over because if they did, there will be no electricity in Iloilo,” Elamparo added.

PECO had already filed a petition before the Court of Appeals (CA) seeking a temporary restraining order (TRO) and/or a writ of preliminary injunction to stop the implementation of the order.

“Contrary to what’s being circulated via publicity by MORE Power, it will be highly irregular at this point to insist on the takeover pending resolution of the motion for clarification that PECO has filed with the RTC of Iloilo to define the parameters of the implementation and, more importantly, in view of the Petition for Certiorari with Prayer for TRO that has been filed with the Court of Appeals. MORE Power cannot jump the gun and pre-empt the ruling on our application for TRO,” Divina Law said in a statement.

“The premature takeover not only is unjust, irregular and unwise, but it will also plunge the city of Iloilo into darkness,” it added.

Roel Castro, president of MORE Power, said: “We are with the court’s order calling for the smooth transition of operations to ensure uninterrupted supply electricity to the city.”

In an interview over radio station RMN-Iloilo, Cacho questioned the capability of MORE Power in running a power distribution utility.

“Wala pa sila (MORE Power) CPCN (certificate of public convenience and necessity) from the ERC (Energy Regulatory Commission) which is a requirement antis magpadalagan ka sang public utility,” Cacho said.

According to him, CPCN is “a proof that you are capable.”

“Para makakuha ka sang CPCN, isa sa kinahanglan ang supply contract. Kay maskin may assets kana pero wala ka supply contract, you cannot distribute energy because you have no energy to supply,” Cacho explained.

“Si PECO has contracts with PEDC (Panay Energy Development Corp.), PCPC (Palm Concepcion Power Corp.),” he said.

PCPC and PEDC are Iloilo-based power producers. 

“If they push sang takeover right now. Wala kami maubra. Ano i-distribute nila nga energy? That would cause outage,” Cacho said.

Meanwhile, Castro said MORE Power would officially start their operation when all the properties (five substations) covered by the writ are delivered to them.

“As far as ERC is concerned, they said its okay. Next week they will have a commission meeting so that will be taken up….few days of no CPCN is not a problem,” he told reporters in a press conference.

“If this is something that is being questioned, why don’t we question the one year that PECO doesn’t have the franchise?,” he added.

On Friday evening, Cacho, claimed that their City Proper substation “is currently being operated by MORE Power while their four other substations “are still under the operation of PECO.”

“Because of them taking over our [City Proper] substation, our tools and materials to attend to trouble calls has been curtailed,” he said.

“All we can do is pray that no major line or pole is damaged. We will not be able to repair it. This was a brazen and unthought of illegal attempted takeover with no planning or after thought on the effect on the consumers,” he added.

In a ruling dated Feb. 20, 2020, Contreras ordered the court sheriff “to place MORE Power in possession” of the following identified power distribution properties:

-Baldoza-La Paz substation (land including all machineries and improvements, buildings)

-General Luna substation (machinery)

-Tabuc Suba, Jaro substation (land, machinery)

-Bolilao, Mandurriao substation (land, buildings, and machinery)

-Avanceña Street, Molo substation (land, and buildings, machinery)

These have a total assessed value of P217,940, 870.

Also ordered to be taken over by MORE Power are personal properties directly used in the electric distribution services in Iloilo City such as consumers’ electric meters, poles, transformers, transmission and distribution equipment composed of primary and secondary lines on the streets of Iloilo City, and service vehicles and equipment used directly in the distribution, maintenance and trouble-shooting activities.

“The primary goal of the court is a smooth and peaceful transition of operation, to protect the public interest of the people of Iloilo City and its businesses, and to ensure the uninterrupted supply of electricity,” a portion of the ruling read.

The Enrique Razon-owned power firm will also take over PECO assets listed under the distribution plant in the ERC record. These include meter lab, power plant building, switchboard house with total assessed value of P14,792, 680.

MORE Power is the new franchise holder for power distribution utility in the city. In Feb. last year, President Rodrigo Duterte signed a law granting a 25-year franchise to the power firm.

On the other hand, PECO’s franchise expired on Jan. 19, 2019. It failed to get the approval of Congress to extend its franchise.IMT