Iloilo power company asks court to decide on expropriation case

ILOILO CITY, Philippines –A power distribution company is seeking for the resolution of its expropriation complaint against the Panay Electric Company (Peco).

But Peco is seeking the issuance of a temporary restraining order from the Court of Appeals to stop the Iloilo Regional Trial Court (RTC) from hearing the case.

In a 10-page motion submitted to the Iloilo RTC Branch 37 on June 20, lawyer Hector Teodosio, legal counsel of More Electric and Power Corp., asked the court to issue an order declaring that the application for a writ of possession is submitted for resolution.

He also asked the court to issue a writ of possession authorizing More Power to expropriate Peco’s distribution assets.

The company on May 21 deposited P481,842,450 at a Land Bank branch as preliminary deposit which serves as pre-payment of the value of the property if the expropriation succeeds or as indemnity for damages if the proceedings fail.

Peco has acknowledged that the assessed value reflected its tax declarations and audited financial statements but it said that this does not “commensurate(with)just compensation.”

Peco has filed before the Mandaluyong City RTC a petition for declaratory relief seeking a preliminary injunction to stop the expropriation of its distribution assets by More Power and prevent the issuance of licenses and permits for the distribution company to operate.

It has also sought to declare certain provisions of Republic Act 11212 as invalid or unconstitutional including the provision allowing More Power to expropriate Peco’s assets.

RA 11212, signed by President Rodrigo Duterte on February 14, granted a 25-year franchise to More Power as Iloilo City’s power distributor.

Iloilo City has around 55,000 consumers including residences and offices.

Peco on June 24 filed a petition for certiorari before the Court of Appeals in asking for suspension of hearings and the issuance of a temporary restraining order.

It also filed a petition before the Supreme Court seeking a transfer of venue of the case from the Iloilo RTC to Metro Manila saying the RTC could be influenced by the extensive media coverage and because it is also a stakeholder of the case.

No order has been issued by the two courts as of Wednesday noon. (Editor: Mike U. Frialde)

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