The Energy Regulatory Commission granted a provisional certificate of public convenience and necessity to Panay Electric Co. to ensure uninterrupted supply of electricity in Iloilo City.
“Under the law, we (the ERC) are authorized to grant Peco the necessary provisional CPCN during the interim period or until More Electric and Power Corporation, the legislative franchisee, has established and can fully operate its own distribution system”, ERC chairperson Agnes Devanadera said.
Peco’s franchise has already expired while President Rodrigo Duterte signed in February this year a law granting More a 25-year power distribution franchise in Iloilo City.
ERC said Peco in the meantime was authorized to operate the existing distribution system within the franchise area, as well as implement its existing power supply agreements with generation companies that had been provisionally or finally approved by the ERC.
ERC said Peco would operate the distribution system until the establishment or acquisition by More of its own distribution system and the complete transition toward full operations within two years.
ERC said Peco’s license was subject to the certain conditions to ensure the uninterrupted supply of electricity in Iloilo City. The regulator also ordered Peco to settle the full amount of a refund not later than June 30, 2019.
“I would like to underscore the provision of the law that the provisional CPCN granted to Peco during the transition period shall not be construed as extending the franchise of Peco which has expired on January 18, 2019,” Devanadera said.
”More, on the other hand, can exercise its right of eminent domain whereby it may acquire such private property that is actually necessary to enable it to perform its obligation to provide uninterrupted supply of electricity in Iloilo City,” she added.