ILOILO CITY — Panay Electric Co. Inc. (Peco) welcomed the issuance of a temporary restraining order (TRO) barring a new power distributing firm, controlled by ports mogul Enrique Razon, from taking over Peco facilities to distribute electricity in the city.
In a statement, Peco said the 20-day TRO issued by the Mandaluyong Regional Trial Court (RTC) against More Electric and Power Corp. (More Power) was a “first step toward finally giving due process to an otherwise process-less exercise.”
“The courts can now meticulously examine multiple unconstitutional provisions in the More [franchise] and decide on what is a first in the entire history of utilities and which could set a precedent for future decisions,” said Marcelo Cacho, Peco administrative manager.
Injunction
Cacho said Peco was hoping that an injunction would be issued by the court, too, while the constitutionality of the franchise was being resolved.
In the five-page TRO, the Mandaluyong RTC Branch 209 barred More Power, the Energy Regulatory Commission (ERC) and the Department of Energy (DOE) from enforcing Republic Act No. 11212.
The law, which took effect on March 6, granted a 25-year franchise to More Power and authorized the firm to “establish, operate and maintain” an electric power distribution system in Iloilo City.
The TRO takes effect upon payment of a P5-million bond by Peco.
Peco deposited the bond on Wednesday, according to Cacho.
Prohibition
More Power said it would abide by the TRO which was issued less than a week after its franchise became effective.
The company did not want to issue further statements saying the issue is already in court.
The order issued by Judge Monique Quisumbing-Ignacio barred More Power from commencing expropriation proceedings and taking over Peco’s distribution assets.
It also prohibited the ERC and the DOE from issuing a certificate of public convenience and necessity for More Power to operate.
Irreparable injury
More Power, the decision said, “can easily take away, under the guise of eminent domain” Peco’s facilities.
It said the TRO was necessary to prevent “the infliction of irreparable injury to Peco.”
The court also set a hearing on April 2 to determine whether the TRO will be converted into a writ of preliminary injunction.
The Peco petition was followed by an expropriation case filed by More Power in Iloilo City to seize Peco’s assets.
The case covered buildings, machinery, equipment, office furniture, computers, software and vehicles that More Power wanted to seize from Peco.