SC reaffirms MORE’s power distribution control in Iloilo City

The Supreme Court affirms its ruling that More is still the sole distributor of electricity in Iloilo CityINQUIRER.net stock photo

MANILA, Philippines—Voting 9-6, the Supreme Court has reaffirmed its September 2020 ruling upholding the control of  More Electric and Power Corporation (MORE) over the power distribution business in Iloilo City.

In an-18 page resolution made public Wednesday, the Court said “after a careful review of the arguments raised by PECO (Panay Electric Co., Inc.), the Court finds no reason to depart from its decision dated Sept. 15, 2020.”

The high court’s ruling last year has set aside the order issued by the Mandaluyong City Regional Trial Court and declaring Sections 10 and 17 of Republic Act No. 11212 (MORE’s franchise) as constitutional.

The said provisions give MORE the powers of eminent domain and to expropriate any asset, including existing distribution assets in the city.

In its recent ruling, the high court reiterates the constitutionality of  Sections 10 and 17 of Republic Act No. 11212 (MORE’s franchise).

The said provisions give MORE the powers of eminent domain and to expropriate any asset, including existing distribution assets in the city.

“Clearly, in granting MORE the right to exercise eminent domain, the primordial concern of the Congress is the welfare of the residents of Iloilo City who rely on the distribution system of PECO. There is no question that PECO’s franchise was not renewed, thus, it can no longer operate the distribution system in Iloilo City,” the high court said.

The high court added that “the power of eminent domain is exercised by the legislature. However, it may be delegated by Congress to the President, administrative bodies, local government units and even to private enterprise performing public services.”

It added that the expropriation of the power distribution assets is necessary to ensure uninterrupted electricity in Iloilo City.

“In sum, expropriation by MORE of the distribution system of PECO under Section 10 and 17 of R.A. No. 11212 serves both the general public interest of conveying power and electricity in Iloilo City and the peculiar public interest and security of ensuring the uninterrupted supply of electricity,” the Court pointed out.

Likewise, the High Tribunal did not give credence to the claim of PECO that it was singled out and that MORE was given undue benefit which should invalidate the grant of a franchise to the latter.

The Court noted that there is only one franchise holder in Iloilo City prior to the enactment of R.A. 11212, thus, it is only natural for PECO being the lone previous franchise holder, to oppose the subsequent franchise holder exercising the right to eminent domain.

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