Iloilo power firm refuses to turn over assets to another distributor

ILOILO CITY — Iloilo’s lone power distributor has bucked calls for the smooth turnover of its assets amid the impending passage of a law granting a franchise to another power distributor.

The Panay Electric Company (Peco) in a statement also stressed it would pursue its bid to have its franchise renewed, saying it was amenable to two power distributors operating in the city.

Sen. Franklin Drilon on Tuesday called on the owners of Peco to allow the negotiation for the sale of their assets after two power interruptions hit the city on Monday amid the holding of two major events.

Drilon was apparently irked with the brownout that affected the opening of the Museum of Philippine Economic History at the former Elizalde Building and performance of the Philippine Madrigal Singers at the St. Anner Parish Church in Molo District.

“I would like to appeal to the Cacho family (to) give Ilonggos a chance (and) consider the welfare of the city by allowing a smooth turnover and negotiate for the viable transfer of (their) assets,” Drilon told reporters.

He said sufficient and efficient power is essential in the development of the city.

Drilon blamed Peco’s purported lack of capital investments to avert the power interruptions.

But Peco clarified that a power interruption that hit the city during the museum’s inauguration was due to maintenance activities of the National Grid Corp. of the Philippines, which was announced three days earlier.

The second brownout was “due to the opening of the circuit breaker of our power supplier Global Business Power (GBP), which cause an outage not only in Iloilo City but also neighboring municipalities outside the City under the Iloilo Electric Cooperative.”

“In both instances, Peco was not the cause of the outages,” according to the firm’s statement.

Peco also said it has been investing in the city, including the upgrading of its facilities.

The Senate and House of Representatives have passed a bill granting the Razon-controlled MORE Power Iloilo a 25-year franchise to operate as a power distributor in Iloilo City.

The franchise provides for a maximum two-year transition period wherein the company can establish or acquire its distribution system.

The bill granting the franchise to MORE Power Iloilo was passed in the House on September 26, 2018, and by the Senate and the bicameral committee in December.

MORE Power Iloilo said in a statement that the bill was received by the Presidential Legislative Liaison Office on January 16.

The bill will automatically become a law if the President takes no action 30 days after it is transmitted to his office.

A bill that will renew Peco’s franchise has languished at the House committee on legislative franchises since it was filed on July 31, 2017.

Peco has maintained that it is not selling its assets to More Power Iloilo and would exhaust legal actions against the granting of the franchise to the More Power which has no track record in power distribution.

Peco is still operating under a Certificate of Public Convenience and Necessity issued by the Energy Regulatory Commission, which is valid until May this year.

The company, owned by the Cacho family, has been operating in the city since 1923.

“MORE has no experience in the power industry and it would be wise for the sake of Iloilo City for them to put up their own facilities and prove themselves as a credible distributor while competing against PECO. This is a democracy after all and the granting of a franchise should be none-discriminatory,” Peco said.

It said the company would pursue the renewal of its franchise and “will have no objections if Iloilo City would have 2 power distributors for the benefit of the Ilonggos.”/lzb