Iloilo power firm sues rival company
ILOILO CITY — Panay Electric Co. (Peco) has filed a petition to stop a power distribution firm owned by ports mogul Enrique Razon from taking over its franchise and operating in Iloilo City.
In a 35-page petition filed at the Mandaluyong City Regional Trial Court on Wednesday, Peco also asked the court to issue a temporary restraining order and injunction against More Power Iloilo.
Also named respondents were the Energy Regulation Commission and the Department of Energy, and other government agencies.
President Duterte on Feb. 14 signed the law granting More a 25-year power distribution franchise in Iloilo City.
Republic Act No. 11212 authorized More to “establish, operate and maintain” an electric power distribution system in Iloilo City. The law was published in the Official Gazette on Feb. 19 and took effect 15 days after its publication.
Iloilo City has around 55,000 consumers, including residences and offices.
Peco also asked the court to declare provisions of RA 11212 as unconstitutional including one that allowed More to expropriate Peco’s assets.
Marcelo Cacho, Peco administrative manager, said they believed this provision was “confiscatory” and gave undue advantage to a private company at the expense of another.
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