BY IME SORNITO and MA. THERESA LADIAO
ILOILO – Consumers welcomed a landmark Supreme Court ruling affirming that electric cooperatives do not hold a constitutional right to exclusive franchise territories, effectively allowing MORE Electric and Power Corporation (MORE Power) – the sole power distributor in this city – to expand its franchise into several towns in Iloilo Province.
With this decision, bared on July 30, consumers anticipate more competitive rates and improved services as a result.
The court’s en banc decision rejected a petition from Iloilo Electric Cooperative, Inc. I, II, and III (ILECO), which challenged the legality of Republic Act No. 11918.
This law permits MORE Power’s entry into Iloilo Province previously dominated by the ILECOs.
According to the ruling penned by Associate Justice Rodil V. Zalameda, a franchise is a state-granted privilege and must serve the common good as determined by Congress.
Consumers like Rio Redonda, a business owner in Pototan town and an ILECO II subscriber, voiced strong support for the decision.
“Competition is beneficial as it prevents monopolistic control over prices and service quality. If there’s competition, companies will strive to offer better and cheaper services,” Redonda told Panay News.
Echoing Redonda’s sentiments, Vilma Navarro from Barangay Casalsagan,
Pototan and another ILECO II consumer, highlighted the benefits of having choices.
“If new operators come in and offer lower rates, we’’ll switch. It’s time we were given a chance to see if others can deliver better results,” she said.
Elma Camacho, a housewife and resident of Cabatuan town served by ILECO I, expressed relief over the ruling.
“We’ve only had ILECO I here, and their reliance on no competition has often led to slow response times during outages. This decision could finally bring other players into our area,” Camacho noted.
Maricar Eseller from Barangay Buyo, Santa Barbara town, and also an ILECO I customer, supports the entry of other power distributors but with a caveat.
“A limit on the number of new entrants is necessary to prevent potential disputes that could affect consumers. Two or three competitors might be ideal,” Eseller suggested.
She also pointed out that ongoing brownouts under ILECO I’s service impact the elderly in her household, hinting at a pressing need for service improvements.
Aila Marie Buhayan, a 24-year-old resident of Jordan, Guimaras, and a consumer of Guimaras Electric Cooperative (GUIMELCO), shared her frustrations with frequent power outages.
“Occasional service might be acceptable, but constant interruptions are not. Competition could force GUIMELCO to step up,” Buhayan asserted.
The Supreme Court’s decision allows MORE Power to extend its operations to municipalities such as Alimodian, Anilao, Banate, Barotac Nuevo, Dingle, Dueñas, Dumangas, Leganes, Leon, New Lucena, Pavia, San Enrique, San Miguel, Santa Barbara, Zarraga, and the component city of Passi. These areas are currently under the franchise domains of ILECO I, II, and III, which had sought judicial intervention to block MORE Power’s expanded operations through RA 11918.
However, the court’s ruling has now set a precedent that could reshape the electric power landscape in Iloilo by promoting competition and potentially lowering costs for consumers./PN
