THE SENATE COMMITTEE on public services on Monday approved in principle the granting of a 25-year legislative franchise to MORE Electric and Power Corp. (MORE Power) and provided for a transition period to replace the incumbent, Panay Electric Co. (PECO) as the sole power distributor in Iloilo City.
“With that, we will form the technical working group but we’ve already approved in principle the motion for a franchise for MORE (Power),” Senator Grace S. Poe-Llamazares said during a hearing on franchise bills.
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).
Meanwhile, PECO’s franchise, which will expire in January 2019, remains pending at the House committee on legislative franchises.
During the hearing on franchise bills, senators agreed to insert a transition period in the bill that will temporarily allow PECO to operate to prevent power outages in Iloilo City.
“The best thing to do now is to convene a technical working group… so that we can make sure amendments made in the franchise will be such that the refunds to consumers will be paid, the meters that they have paid also be paid back to consumers and all these safeguards,” Senate Majority Leader Juan Miguel F. Zubiri said.
“And of course to tackle the issue of the valuation also of PECO to make sure they are properly compensated,” he added.
Asked for comment by Ms. Llamanzares, PECO President and Chief Executive Officer (CEO) Luis Miguel A. Cacho said, “We assure we will provide service to Iloilo, no matter what.”
PECO chairman of the board Mariano M. Cacho, Jr. noted that MORE Power lacked experience and equipment to operate an electric power distribution business. He said the firm has relied on the grant of the power of eminent domain to “expropriate and confiscate the assets and business of the current franchisee,” which is PECO.
However, Ms. Llamanzares pointed out that the situation will end up with MORE Power getting the franchise since the House of Representatives did not act on PECO’s franchise so the latter company would have to turn over its assets after being properly compensated.
MORE Power President Roel C. Castro said he is confident that MORE Power has sufficient experience in the power industry and can help bring down the cost of electricity. He noted that the company’s principal, Monte Oro, was a shareholder of the National Grid Corp. of the Philippines (NGCP) when it was privatized. Former general managers of electric cooperatives also form part of its team, he added.
“We are actually ready to invest P700 million in the next three to five years to improve the reliability, to bring down the systems losses, to improve the capacity, and so on,” Mr. Castro said.
Aside from MORE Power, the Senate panel also approved the legislative franchises of the Catholic Bishops’ Conference of the Philippines, Inc. (CBCP) and Tirad Pass Radio TV Broadcasting Network, Inc. — Camille A. Aguinaldo

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