ERC says MORE Power is Iloilo City’s sole power distributor

Amid the legal brawl between two power distributors in Iloilo City, the Energy Regulatory Commission (ERC) has stood firm with its decision to grant license to Razon-led MORE Electric Power Corporation to distribute electricity in the contested franchise area.

“More Power is recognized as the only Distribution Utility of Iloilo City. This should be clear among parties,” ERC Chairperson Agnes Devenadera said in an interview in a local radio station.

“We respect the cases pending in the lower courts but the fact remain that the ERC has the exclusive authority by virtue of the law when it comes to supply of electricity power and generation rates and operation of Distribution Utilities. We stand by our March 5 order that MORE Power should be the one who should supply the electricity in Iloilo City,” Devanadera said.

In a March 5, 2020 order, the ERC said it revoked the certificate of public convenience and necessity (CPCN) issued to Panay Electric Company “after determining that MORE has established or acquired its own distribution system and verified MORE’s complete transition to full operations.

In a motion for reconsideration filed before the ERC, PECO said the ERC should revoke the provisional CPCN  issued to MORE as it was not supported by verified documents.

PECO and MORE have locked horns over the rights to be Iloilo City's power distribution utility. In 2019, PECO's congressional franchise expired and at the same time lawmakers granted franchise to MORE.

PECO is Iloilo City's power distributor of 95 years, but MORE was granted a franchise in 2019, prompting PECO to go to courts and question provisions in MORE's franchise that would supposedly allow the Razon-owned firm to expropriate its assets.

Devanadera said that any legal issue or court case does not dilute the sole authority granted to the ERC by the law, specifically the Electricity Power Industry Reform Act (EPIRA), which gave the Commission as a quasi-judicial entity the sole jurisdiction over the operation of electricity distribution utilities.

She said the ERC’s jurisdiction over the operation of distribution utilities is established in jurisprudence.

The ERC chair said she issued this clarification to clear up confusion among consumers as to which one of the two companies is legitimately operating as Iloilo City’s distribution utility when they pay their monthly bills.

Devanadera said that even if the law requires MORE Power to get a Certificate of Exemption from the Department of Energy (DOE) so it could sign power supply agreements with generating companies, the EPIRA Law also allows utilities to engage in emergency contracts between utilities and power suppliers to ensure no disruption of electricity service.

She said the DOE is expected to issue MORE Power its Certificate of Exemption soon as the legitimate congressional franchisee. — MDM, GMA News