The Department of Energy will take over the operations of controversial utility firm Panay Electric Co. if it refuses to turn over its distribution facilities to the new company More Electric Power Corp., which has been granted the congressional franchise to distribute electricity in Iloilo City once PECO’s franchise expires on Jan. 18, 2019.
Energy Secretary Alfonso Cusi said the DOE has formed a task force with the National Electrification Administration to take over the PECO’s facilities and operations in case the company refuses to implement a transition plan envisioned in the franchise bill that will authorize More Power to distribute electricity in Iloilo City.
“We are prepared to take over in case, to ensure there is no disruption of service. DOE and NEA. We organized a task force to take over in case there will be no settlement in the issue,” Cusi told newsmen.
However, Cusi said he would prefer that PECO and More Power to reach an agreement on a smooth transition plan that would not disrupt electricity service in Iloilo City.
“That’s what we’d like to see if both parties agree to submit their transition plan to ensure that there will be no interruption of service,” the DOE chief said.
However, Cusi gave assurance that “in case they cannot agree, the government, DOE will take over, as a holdover, to ensure there will be no disruption [of electricity service].”
The Senate version of More Power’s franchise bill would give PECO a temporary Certificate of Public Convenience and Necessity (CPCN) for one year to continue operations while turning over full operations to More Power.
PECO had come under criticism following the threat aired by its legal counsel, lawyer Inocencio Ferrer, that the company will shut down and plunge Iloilo City into a citywide power blackout when the company’s franchise expires on Jan. 18 next year.
Ferrer said Iloilo City residents have no one to blame but the House and the Senate for granting the legislative franchise to More Power instead of giving the application of PECO for a new franchise. This is contrary to the promise of PECO chairman Luis Miguel Cacho that PECO will continue to serve Iloilo City residents even if the company does not get its franchise.