Iloilo power play: More asks Peco to ‘throw in towel’ but 97-yr-old utility says fight not over

ILOILO CITY—More Power Electric Corp. (More Power) welcomed the Supreme Court decision that upheld provisions of a law granting the company a 25-year franchise to establish, operate and maintain a power distribution system in Iloilo City.

More Power President Roel Castro said he was hoping that the ruling “will eventually put to rest” the legal questions on More’s expropriation of assets of the Panay Electric Company (Peco).

“I hope Peco will throw in the towel and we can help each other to move on. But I would understand and will respect any decision on their part to avail of any available legal recourse,” Castro told the INQUIRER.

He said what is important is that consumers are not affected by the still ongoing expropriation process.

The Iloilo Regional Trial Court (RTC) is still determining the amount for just compensation of the expropriation of Peco’s assets which had been valued at least P481,842,450.

More Power, owned by ports tycoon Enrique Razon, took over power sub-stations and other distribution assets of Peco in February after the Iloilo RTC Branch 23 issued a writ of possession in its favor.

Peco, which had been serving Iloilo City for nearly 100 years, warned that the ruling will have “reverberating consequences” and could lead to the abuse of the power of expropriation.

Lawyer Estrella Elamparo, Peco’s legal counsel, said she was “saddened” by the decision of the high court stressing the implication of the ruling.

“Although this is a massive hurdle, we will not give up on our fight and we will continue to pursue the available legal remedies to defend Peco’s constitutional rights,” she said in a text message to the INQUIRER.

“It was a close vote on a novel issue that had never been raised before our Highest Court, but will certainly have reverberating consequences that open the power of expropriation to abuse,” Elamparo said.

She said the “tight vote lends support to our position that the takeover of Peco’s properties is not the exercise of eminent domain contemplated by our laws, but a violation of constitutional rights.”

In her July 1 decision, Judge Monique Quisumbing-Ignacio, of the Mandaluyong City RTC Branch 209, declared Section 10 (right of eminent domain) and Section 17 (transition of operations) of RA 11212 as void and unconstitutional for infringing on Peco’s rights to due process and equal protection of the law.”

“Peco has no obligation to sell and (More Power) has no right to expropriate Peco’s assets,” according to the Mandaluyong RTC decision.

Ignacio said the power of eminent domain “was never intended to be used as a tool to take private property already being devoted to public use from one person and transfer the same to another person to be used for the same public purpose.”

The only tangible effect of the exercise of eminent domain by virtue of the assailed provisions would be to replace Peco with More as the owner of the existing electric power distribution system of Iloilo City, the court decision said.

In other words, a corporate takeover. To achieve this end, the State should not intervene, it added.

This should be a private matter between Peco and More, according to her decision.

Iloilo City Mayor Jerry Treñas said the ruling was a positive development that will hopefully lead to a more stable distribution of power in the city.

“It’s about time that the issue is settled so that there will be capital investments (to upgrade the distribution system),” he told the INQUIRER.

Peco operated for 97 years but its franchise expired on Jan. 18, 2019 and was not renewed by Congress.

Edited by TSB