ERC resolves MORE-Peco impasse to ensure no Iloilo power disruption

By Lenie Lectura – March 9, 2020
from Business Mirror

THE Energy Regulatory Commission (ERC) has resolved the impasse between More Electric and Power Corp. and Panay Electric Co. (Peco) after it revoked the latter’s temporary certificate of public convenience and necessity (CPCN) and issued a provisional authority (PA) to the former so it could operate the power distribution network in Iloilo.

“After determining that MORE has established or acquired its own distribution system and verified MORE’s complete transition to full operations,” ERC Chairman Agnes T. Devanadera ordered the revocation of Peco’s temporary CPCN.

The ERC decision was arrived at after the agency’s technical personnel conducted on March 3 and 4 an ocular inspection to verify the actual status of the distribution network. Devanadera’s order was dated March 5.

The ERC inspection team submitted an inspection report confirming that MORE has gained full possession and control over the five substations in Iloilo City’s five districts, has prepared for all other aspects related to electricity distribution, and has power supply contracts in place with four power suppliers that will ensure uninterrupted power supply of electricity, sufficient to serve the consumers in the franchise area.

“The ERC Inspection Team has, likewise, verified MORE’s full readiness and capability in aspects of development, operation and maintenance of distribution systems” in Iloilo, added the ERC chief.

MORE Power, according to its President and Chief Executive Officer Roel Z. Castro, is committed to provide excellent service to the people of Iloilo City. “We ensure they get reliable, stable and continuous supply of electricity. MORE Power has made sure we have power supply agreements so the Ilonggos can breathe free they will have no power supply problems under our care.”

Castro personally met with Iloilo City Mayor Geronimo Treñas to give this assurance. He met also with the business community separately to assure them that business will run smoother and more efficiently with MORE Power handling the city’s electricity distribution system.

He said MORE Power has deployed 24/7 reaction and trouble-shooting teams to make sure all consumer concerns on their electricity supply is solved fast.

It may be recalled that Peco’s franchise was no longer renewed but the ERC issued on May 21, 2019, a provisional CPCN to Peco so that supply of electricity won’t be hampered. The said permit is valid until MORE is able to establish or acquire its own distribution system.

MORE secured on February 14, 2019, a legislative franchise to establish, operate and maintain for commercial purposes a distribution system in Iloilo for 25 years.

On February 20, 2020, the Iloilo City Regional Trial Court Branch 23 authorized MORE to take possession of certain properties of Peco. The Writ of Possession (WOP) was served by the Iloilo Sheriff on March 2, 2020.

Thereafter, the ERC conducted its own inspection to verify this.

In revoking Peco’s temporary CPCN and issuing a provisional authority to MORE Power, the ERC said “it is mindful of its mandate to protect consumer interest, ensure uninterrupted electric service to consumers in Iloilo City, and prevent chaos and confusion among customers as to who is authorized to operate the distribution system in the area.”

The ERC decision also authorized MORE Power to collect the old distribution charge that the ERC allowed Peco to collect as payment from Iloilo City’s electricity consumers.

Also, MORE Power is required to secure its own power supply agreements to supply the needs of its customers, and if it has not secured such because it has not gotten the Certificate of Exemption from the Department of Energy to enter into emergency PSAs, it is to source its power requirements from the current power generation companies that supplied electricity to Peco.

MORE Power already has four power supply agreements with electricity power generation companies, according to the ERC’s technical team sent to verify if MORE Power is fully capable of supplying Iloilo’s estimated 80,000 electricity consumers.