THE SENATE on Monday approved on third and final reading the bill granting the franchise of MORE Electric and Power Corp., effectively replacing Panay Electric Co. (PECO) as the sole power distributor in Iloilo City.
House Bill No. 8302, which grants the company to operate for 25 years, was approved with 15 affirmative votes, zero negative vote, and no abstentions.
It was sponsored by Senator Grace S. Poe-Llamanzares, chair of the Senate committee on public services, for the Senate’s plenary approval.
The House of Representatives approved MORE Power’s legislative franchise on Oct. 8 and transmitted it to the Senate the following day. MORE Power was previously MORE Minerals Corp., a unit of Enrique K. Razon, Jr.’s Monte Oro Resources and Energy, Inc. (MORE).
To ensure the uninterrupted supply of electricity, the franchise bill provides for a transition period allowing PECO to operate temporarily until MORE Power is in full operation. The period will not exceed to two years from the grant of legislative franchise.
During the transition period, PECO is required to settle all refunds in connection with the all cases filed against it.
Meanwhile, MORE Power is directed to “accord preference” to hiring PECO employees and to conduct an information campaign regarding its operations to Iloilo end-users.
Both companies are also required to ensure that laid-off employees receive all separation and retirements benefits prescribed by law.
MORE Power should also undergo a competitive selection process in securing power supply agreements, the bill stated. It should also reduce the duration and frequency of power interruptions.
MORE Power is required to submit an annual report to Congress on its compliance with the terms and conditions of the franchise. Any sale or transfer of its shares are also subject to Congressional notification.
The Energy Regulatory Commission (ERC) was directed to conduct a comprehensive assessment of the company’s operations one year after the grant of the franchise and five years thereafter. — Camille A. Aguinaldo
