MORE sets P1.7 billion budget to upgrade Iloilo power

MANILA, Philippines — MORE Electric and Power Corp. of port magnate Enrique Razon has set a budget of nearly P1.7 billion in the next three years to upgrade Iloilo City’s electricity distribution facilities.

The said amount was arrived at after the company secured its distribution utility (DU) franchise from Congress in December last year.

MORE Electric president Roel Castro said the P1.7-billion budget would be used for “system reliability projects, systems loss reduction projects, system capacity projects, and safety improvement projects.”

President Duterte signed Republic Act 11212 last Feb. 14, which authorized MORE Electric to take over all and any facility and property it needs to ensure Iloilo City and nearby municipalities have continuous and assured supply of electricity. 

It asked the Iloilo City Regional Trial Court (RTC) clearance to expropriate all the ageing distribution network of PECO.

Castro said the company had secured the expropriation order from the Iloilo City RTC in line with the provisions of RA 11212 and the Electric  Power Industry Reform Act (EPIRA).

However, PECO said the provision violates its right to due process and constitutional right to equal protection of the law.

PECO–whose franchise expired last Jan. 19 and was not granted extension by Congress–is still operating as Iloilo City’s power distributor on the basis of its certificate of public convenience and necessity (CPCN) until MORE Electric completes its two-year transition towards full operations.

The CPCN mandates PECO to guarantee the provision of electricity for the promotion and protection of consumer interest.

PECO has asked the Mandaluyong Regional Trial Court to issue an order stopping the Razon-led firm from expropriating the former’s assets.

The Mandaluyong RTC granted its request and also declared RA 11212 as unconstitutional “for infringing on PECO’s rights to due process and equal protection of the law.” 

The issue was elevated to the Court of Appeals (CA), and then to the Supreme Court (SC).

The SC second division denied MORE Energy’s prayer for a temporary restraining order (TRO) on the Mandaluyong RTC resolution upholding the permanent discontinuation of the expropriation case.