Panay power firm to fight Razon takeover of its distribution assets

ILOILO CITY –The Panay Electric Company (Peco) will not allow the takeover of its distribution assets by a rival company owned by billionaire Enrique Razon Jr. unless the Supreme Court upholds the constitutionality of provisions of the law granting its rival a franchise to distribute electricity in Iloilo City.

Lawyer Estrella Elamparo, legal counsel of Peco, said the court order of the Iloilo Regional Trial Court (RTC) Branch 37 granting the issuance of a writ of possession in favor of More Power Electric Corp. (More Power) is “completely void and ineffective.”

She said there was no need for Peco to petition for the issuance of a restraining order against the implementation of the Iloilo RTC order because the Mandaluyong RTC had already earlier issued an order barring More Power from expropriating Peco’s distribution assets.

Judge Marie Yvette Go of the Iloilo RTR Branch 37 issued an order dated August 14 granting the application for a writ of possession to More Power to take over Peco’s distribution assets.

Go in her ruling cited Republic Act 11212 which granted a 25-year franchise to More Power to distribute electricity and authorized it to put up or acquire its distribution assets.

In her order, Go also said that the court’s duty for the issuance of a writ of possession is ministerial when More Power complied with two requirements: the submission of an expropriation complaint sufficient in form and substance and upon depositing the amount equivalent to the assessed value of properties subject for expropriation.

But Elamparo said Go’s ruling pre-empted a final ruling of the Supreme Court on the provisions RA 11212 declared as unconstitutional by the Mandaluyong RTC.

She said they are still the process of studying legal remedies to protect the rights of Peco.

Go in her order said that the provisions declared unconstitutional by the Mandaluyong RTC are still “in force and effect, pending a final executory decision on that score.”

Go, however, inhibited herself from the case after granting the application for the writ of possession.

In an order dated August 15, Go granted the petition of Peco to inhibit herself from the case for allegedly being partial to More Power.

“This allegation is downright baseless and malicious,” she said.

But she said she granted Peco’s petition “in order to dispel any doubt as to the impartiality and integrity of the undersigned judge” and to “avoid issuing decision, orders and resolutions (that will be) put under cloud of distrust and skepticism.”

Peco’s franchise expired on Jan. 18, but the Energy Regulatory Commission has granted a provisional Certificate of Public Convenience and Necessity to Peco to continue distributing power in Iloilo City staving off disruption of power supply to consumers amid the continuing legal dispute between the two firms.