ILOILO City — The Supreme Court has issued a final ruling upholding the constitutionality of MORE Electric and Power Corporation’s (MORE Power) expanded franchise, allowing the company to extend its electricity distribution services beyond Iloilo City to 15 additional municipalities and the component city of Passi in Iloilo Province.
In a Resolution dated May 20 and received by the involved parties on June 13, the Court en banc denied with finality the motions for reconsideration filed by Iloilo Electric Cooperative I (ILECO I), the Philippine Rural Electric Cooperatives Association (PHILRECA), and other petitioners.
The Court stated that it had thoroughly addressed the key legal issues in their previous decision and would not entertain further pleadings.
“The Court resolved by the same vote, to DENY WITH FINALITY the said Motion for Reconsideration as this court has passed upon the basic issues raised therein and no substantial arguments were presented to warrant the reversal of the questioned Decision,” according to the justices.
“We’re grateful that the Supreme Court has upheld the rule of law and the will of the people,” said Roel Z. Castro, president and chief executive officer of MORE Power. “This ruling is a victory for consumers who have been waiting for two years to access modern, reliable, and efficient electric service.”
Legal Victory for Consumers
The petitioners had challenged Republic Act No. 11918, enacted in July 2022, which expanded MORE Power’s service area from Iloilo City to nearby towns including Alimodian, Anilao, Banate, Barotac Nuevo, Dingle, Dueñas, Dumangas, Leganes, Leon, New Lucena, Pavia, San Enrique, San Miguel, Santa Barbara, and Zarraga, and Passi City.
Alleging violations of the Electric Power Industry Reform Act (EPIRA) and constitutional rights, the petitioners sought to block the law.
However, the Court reaffirmed that public utility franchises are not exclusive and that Congress, through its legislative powers, may amend or expand franchises to prioritize the general welfare.
Expansion to Deliver Modern and Competitive Service
MORE Power plans to roll out the expansion in phases over four to five years, focusing on upgrading infrastructure, enhancing power reliability, and improving customer service in the newly included areas.
The company’s entry has been widely welcomed by local officials and consumer groups across Iloilo, many of whom have been vocal about dissatisfaction with the performance of existing electric cooperatives.
MORE Power’s operations in Iloilo City have already demonstrated improvements in system efficiency, customer service, and pricing transparency.
A Milestone in Energy Reform
The final ruling marks a major milestone in national efforts to improve electric service delivery and introduce healthy competition in the energy distribution sector.
“Electricity is a basic need. This decision enables us to serve more communities who deserve better power services,” Castro said.
Genesis of Expansion
Pavia, Iloilo’s Sangguniang Bayan (SB) member Daniel “Dan” Fajardo II welcomed the Supreme Court ruling, describing this development as “good news” especially for Pavianhons.
In a privilege speech August 2021, Fajardo broached the idea of an expanded operation of MORE Power, citing neighboring Iloilo City which enjoyed a dramatic drop in electricity rates by MORE Power. He pointed out that a decrease in the cost of electricity would have a direct impact on the lives of Pavia’s residents and stakeholders such as the various businesses that have made the municipality their base of operation.
“We are looking forward for the people of Pavia to also avail themselves and experience
cheaper electricity,” said Fajardo.
Fajardo’s privilege speech prompted Pavia’s SB to unanimously pass a resolution seeking the possibility of Pavia being covered by MORE Power’s service.
Pavia is currently under the franchise area of ILECO I which has higher electricity rates compared to MORE Power.
“We are adjacent to Iloilo City. It is our duty to provide our stakeholders with cheaper power to help them grow their businesses that will hopefully translate to more investments, jobs and tax revenues for the municipality of Pavia,” Fajardo said./PN
