DoE, ERC allow Peco to keep Iloilo service
By Alena Mae S. Flores – January 18, 2019 at 8:50 pm
from manilastandard.net
The Department of Energy and Energy Regulatory Commission on Friday jointly allowed Panay Electric Co. to continue serving the electricity requirements of Iloilo City after its franchise expired.
“Given the crucial role of regional economies in the overall economic progress of the country, uninterrupted energy services in Iloilo is of utmost importance. We are reassuring our kababayans in Iloilo City, La Paz, Jaro, and Arevalo that there will be no power disruptions. In the interim, Peco will remain the power service provider in the area,” Energy Secretary Alfonso Cusi said.
“We are in close coordination with all concerned stakeholders to ensure that Iloilo will not be left in the dark. The entire energy family remains committed to seeking innovative solutions that would make energy services more reliable and sustainable throughout the country,” the energy chief said.
Energy Assistant Secretary Redentor Delola said the DoE met with Peco, its suppliers, National Grid Corp. of the Philippines, Independent Electricity Market Operator of the Philippines and the ERC to discuss the power situation in Iloilo City.
“DoE would like to assure kababayans in Iloilo… that there would be no power disruption and Peco remains to be the power service providers. Their (operations) will continue even after the expiration of their franchise,” Delola said.
Peco’s franchise expired Friday. Both houses of Congress granted the franchise to More Electric Power Corp., owned by businessman Enrique Razon Jr.
Delola said Peco agreed to continue its service and affirmed its commitment to honor its obligations to suppliers, NGCP and the Iloilo consumers.
“We’re awaiting the approval of the franchise for the service area of Peco. The DOoE would like to call on the cooperation of all the concerned power players,” he said.
Delola said the certificate of public convenience and necessity of Peco was valid until May 25, which served as the legal basis of ERC and DOE in allowing the distributor to continue operating in Iloilo.
“We consider this as an extraordinary situation, so the ERC must ensure the continuous provision of electricity within Peco’s franchise area” ERC chairperson Agnes Devanadera said.
The ERB issued the franchise to PECO on May 31, 1996, or effective until May 25, 2019.
Peco’s certificate of public convenience and necessity was anchored on the franchise granted by the National Electrification Administration’s National Electrification Commission to Peco which expired Friday.
“Since there is no entity yet granted a franchise by the Congress, the extraordinary situation calls for the ERC to honor the CPCN issued to Peco with an expiration date of May 25, 2019. ERC cannot allow the consumers to suffer the consequences of a power outage, so we are directing Peco to continue with its electric distribution service for the protection of the electricity consumers in Iloilo City,” ERC chair Devanadera said.
