‘Shocked’ PECO challenges takeover, seeks legal remedies

Panay Electric Co. administrative manager Marcelo Cacho (left) refuses to receive from court sheriffs the Writ of Possession issued by the court. IAN PAUL CORDERO/PN
Panay Electric Co. administrative manager Marcelo Cacho (left) refuses to receive from court sheriffs the Writ of Possession issued by the court. IAN PAUL CORDERO/PN

ILOILO City – Unprecedented, highly irregular and shocking.

This was how the legal counsel of Panay Electric Co. (PECO) described MORE Electric and Power Corp.’s (MORE Power) takeover of its client’s power distribution facilities yesterday.

Atty. Estrella Elamparo of the law firm Divina Law cited the pending Supreme Court case on the constitutionality of MORE Power’s franchise and the standing order on the suspension of the expropriation proceedings against PECO issued by a previous judge hearing it.

“If there is standing suspension of proceedings, no order or action can be taken on the case unless and until the suspension is lifted,” said Elamparo.

She was referring to the order issued by Judge Antonio Gerardo Amular of the Regional Trial Court (RTC), Branch 35.

Elamparo also lamented that PECO as party in the expropriation case was “kept in the dark” about the issuance of a Writ of Possession by RTC Branch 23.

“We’ve been following that up since Thursday with the clerk of court. It was only this morning (Friday) that the clerk admitted to us she was given specific instruction not to divulge any information regarding the writ to PECO. That is very irregular. We are a party in the case so we are entitled to know,” she said

Elamparo confirmed that PECO asked the Court of Appeals to stop the takeover.

In a statement, Manila-based Divina Law said the power firm applied for Temporary Restraining Order (TRO) and/or a Writ of Preliminary Injunction “to restrain the implementation of the Order and/or any writ that may be issued by the RTC.”

PECO also filed with the Court of Appeals a Petition for Certiorari asking it to review the RTC Branch 23 order reiterating the issuance of a Writ of Possession.

“Contrary to what’s being circulated via publicity by MORE Power, it will be highly irregular at this point to insist on the takeover pending resolution of the motion for clarification that PECO has filed with the RTC (Branch 23) of Iloilo to define the parameters of the implementation and, more importantly, in view of the Petition for Certiorari with prayer for TRO that has been filed with the Court of Appeals,” the law firm said.

MORE cannot “jump the gun” and preempt the ruling on PECO’s application for TRO, it added.

Here yesterday, Atty. Elamparo also said PECO filed a motion to suspend proceeding on the basis of the Petition for Certiorari, and a Urgent Motion for the Inhibition of RTC Branch 23’s Judge Emerald Requina-Contreras “given the manifest bias and impartiality in favor of MORE Power shown by her act of issuing the order reiterating the grant of a Writ of Possession when there is a standing suspension of proceeding previously issued by Judge Antonio Gerardo Amular which has not been lifted.”

As to yesterday’s takeover by MORE Power, Elamparo said, “The sheriff does not have the authority to insist or to force his way into the PECO property because he does not have a break-open order.”

In instances when the sheriff is unable to get the acquiescence or possession of the properties and he will have to use force, there has to be break-open order issued by the court for him to have the authority to break-open, Elamparo explained.

Regarding the power distribution, Divina Law said PECO will “responsibly continue to provide service to the city” while “this legal issue is being resolved.”

“Additionally, PECO will vigorously pursue all legal remedies to set aside the order,” it added.

PECO had been Iloilo City’s monopoly power distributor for over 95 years. Its franchise expired on Jan. 19, 2019.

It failed to secure an extension or a new one from Congress which cited the many complaints from consumers over, among others, erroneous billing, poor customer service and high rates.

On Feb. 14, 2019 President Rodrigo Duterte signed into law MORE Power’s franchise, Republic Act (RA) 11212.

In March 2019 MORE Power asked RTC Iloilo City Branch 37 to issue a writ of possession authorizing it to take immediate control, operation, use, and disposition of PECO’s power distribution system assets./PN

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