ERC terminates PECO’s license to distribute power

By Alena Mae S. Flores – March 06, 2020 at 09:20 pm
from manilastandard.net

The Energy Regulatory Commission revoked the certificate of public convenience and necessity of Panay Electric Co. (PECO) after More Electric Power Corp., which holds the franchise to distribute power in Iloilo City, took over possession of the distribution system in Iloilo City.

ERC chairperson Agnes Devanadera informed both parties that the commission revoked PECO’s CPCN to “prevent chaos and confusion among said customers as to who is authorized to operate the distribution system in the area” as part of the agency’s mandate to protect consumer interest and ensure uninterrupted electric service.

Devanadera said the commission also resolved to issue a provisional authority authorizing MORE to operate the distribution network in Iloilo.

Republic Act 11212 granting a legislative franchise to MORE allowed the company to operate and maintain a distribution system to the end-users of Iloilo City for 25 years.

“While MORE is unable to secure the certificate of exemption from the Department of Energy necessary to enter into emergency power supply agreements, it shall source its power requirements from the current power generation suppliers of PECO,” she said.

Devanadera informed PECO and MORE that the commission, through its technical personnel, conducted an ocular inspection on March 3 and 4 to verify the actual status of the distribution network and determine who among MORE and PECO was actually operating the system.

Devanadera said the ERC inspection ream submitted a report confirming that MORE had gained full possession and control over five substations and prepared for all other aspects related to electricity distribution.