SUNDAY morning saw me entering gate 8 of Central Philippine University (CPU) while its giant generator was roaring – a sure indicator that the power-distribution system of Panay Electric Co. (PECO) had gone awry. It had been that way, somebody told me, since 6 a.m.
It was unusual that the Jaro brownout lasted 11 hours, stretching till past 5 p.m. and paling previous one-hour brownouts in comparison.
There is growing fear among residents of Iloilo City that PECO would further “succeed” in driving away prospective investors and employers, since it is no longer in the position to meet the power demand of an expanding clientele. Its franchise having expired nine months ago, it has naturally lost “incentive” to level up.
At the risk of being repetitious, this columnist reiterates that the law (Republic Act 11212) awarding the power-distribution franchise to MORE Electric and Power Corp. (MORE Power) should have been implemented without further delay. President Rodrigo Duterte signed the law on Feb. 14, 2019 yet.
With nothing but a temporary certificate of public convenience and necessity issued by the Energy Regulatory Commission (ERC), PECO has sought to delay turnover of its facilities to MORE Power by citing “unconstitutionality” of MORE Power’s expropriation of its facilities.
Strangely and illogically, however, PECO rides on a provision of the same law, Section 17, to hold on: “Panay Electric Co. (PECO) shall in the interim be authorized to operate the existing distribution system within the franchise area.”
That sums up the transitory provision that should have guaranteed smooth turnover of power distribution from the past to the present franchisee.
The longer the delay, however, the harder it gets for PECO to deliver basic services. Many of its employees, including vice president Randy Pastolero, have resigned in pursuit of retirement benefits and re-employment elsewhere.
Why not, when the company has amassed billions of pesos from 96 straight years of power monopoly?
Since the law is presumed constitutional unless declared otherwise by the Supreme Court or amended by Congress, the unnecessary delay could frustrate the promise of Mayor Jerry Treñas to “level up”.
With no secure source of power, how could Iloilo City respond to that challenge?
PECO’s refusal to cooperate using a flimsy ground contests the order of Judge Yvette Go of the Iloilo City Regional Trial Court (RTC), Branch 37, approving the application of MORE Power for a writ of possession.
To another Iloilo RTC branch (35) under Judge Daniel Antonio Gerardo Amular has fallen the task of issuing the writ of possession that would authorize the court sheriff to sequester the power distribution system in favor of MORE Power. Before it could be done, the judge has first to determine the “just compensation” that MORE Power would have to pay PECO.
MORE Power, remember, has stashed away in a bank the amount of P481,842,450 in “just compensation” it is willing to pay even if the cost of the entire power-distribution system is embedded piecemeal in monthly billings, hence already fully paid for by customers.
So far, the judge has not okayed the offer nor come up with a different amount.
As to whether PECO would demand bigger compensation, it has showed no inclination so far.
In a telephone conversation with this writer, Mayor Jerry Treñas expressed willingness to mediate between officials of the two power firms, but only after the judge would have issued a writ of possession.
Oh, well, but why not now?
As a lawyer, the mayor knows that an out-of-court settlement could facilitate conciliation. (hvego31@gmail.com/PN)
