More Electric and Power Corp., a company led by businessman Enrique Razon Jr., asked the Energy Regulatory Commission to issue a certificate of public convenience and necessity for the operation of the electric distribution system in Iloilo City.
More made the request after President Rodrigo Duterte signed Republic Act No. 11212 into law, granting More the franchise to operate the Iloilo distribution system.
“In order to ensure that it has all the legal requirements to operate the distribution facilities in Iloilo City, More respectfully submits that it must have a CPCN from the honorable commission,” More said in its application.
More said a provisional approval should be secured as there might be a difficulty in getting a final decision amid the heavy caseload handled by the ERC.
It said the provisional approval or interim relief would enable it to operate the distribution facilities in Iloilo City and ensure there would be no power interruption in the delivery of electric services to consumers in compliance with the law.
“Otherwise, applicant More will not be able to legally operate the distribution system in Iloilo City, to the detriment of the continued security of the power supply of the consumers therein,” it said.
More said it was granted by Congress the right and power of expropriation or eminent domain to take over the distribution assets of Panay Electric Co., whose franchise expired on Jan. 19, 2019.
“Based on this provision, More shall institute the proper proceedings for the acquisition of the distribution assets in Iloilo City. More will need a CPCN before it can legally operate such assets,” it said.
The Department of Energy and ERC earlier allowed Peco to continue to serve the power distribution requirements of Iloilo City after its franchise expired.
ERC and DOE said Peco’s CPCN would be valid until May 25 which served the legal basis in allowing them to continue to operate.
Peco corporate affairs manager Mikel Afzelius earlier said the company made a commitment to the city of Iloilo that it would continue to operate although it had not yet secured its franchise renewal.
“If their [MORE] bill becomes a law, Peco will still continue to operate since More doesn’t have any power distribution assets up to now. More can put up their own assets and be a power distribution company if they want, but they should not expropriate Peco’s assets because that is already unconstitutional to grab someone else’s private property without the two parties agreeing on a valid sale,” Afzelius said.
Afzelius said that if More tried to expropriate its assets, Peco would exert all legal remedies to protect itself.
“More again can put up its own facilities and run a power distribution business but they cannot and should not expropriate Peco’s assets. The only way they can use Peco’s assets if there is a legal sale between Peco and More which to this date there is no agreement between the two parties,” he said last month.
ERC set the pre-trial conference and presentation of evidence on More’s petition on Wednesday.