City to intervene in power franchise tug of war

THE City Council unanimously approved a resolution authorizing the city government to intervene in the deliberations on the granting of franchise to a power distributor in Iloilo City.

The resolution sponsored by councilor R Leoni Gerochi, committee on transportation, energy and public utilities chair, was originally titled: “A resolution manifesting intervention and demanding participation of the Iloilo City government in all the processes pertaining to the ongoing deliberations to grant a franchise among applicants for electricity distribution in the City of Iloilo by pushing for terms and conditions that embodies safeguard mechanisms as complementary in the issuance of franchise in order to ensure that the welfare of the Ilonggo consumers are upheld and protected.”

But during their regular session on Oct 2, Councilor Plaridel Nava, acting presiding officer, suggested that the resolution should be more specific and cite a particular official who will represent the city.

“There must be somebody who will be authorized to intervene. It is not only enough that we manifest or demand with the Congress,” he said.

They agreed to authorize Mayor Jose Espinosa III, Gerochi, and Councilor Joshua Alim who volunteered to be a representative.

Nava added that the resolution should also cite particular terms and conditions that will be embodied in the franchise.

The councilors decided to finalize the resolution after their session.

The Congress is currently deliberating on two franchise applications. One is the franchise renewal of Panay Electric Company (PECO), the existing distributor in the city whose 25-year franchise is set to expire in January 2019.

The other is a new player, More Minerals Corporations (MMC).

Gerochi said unlike the deliberation on PECO’s franchise where the city was involved, he said they were kept in the dark on MMC’s application.

“I would like to clarify that I am not endorsing MMC. Although I am opposing to that (application) of PECO,” he said.

“Ang purpose sang sini nga resolution is to protect the consumers regardless kung sin-o man ang mahatagan sang franchise. Wala kita dapat sang awayan kay ini nga resolution wala sang ginapaboran kundi ang mga kunsumidor gid lamang,” he said.

He further suggested that the firm that will get the franchise should be a publicly-listed company so that the consumers can easily check its books.

“This is our biggest chance to institute reforms. If we are successful in this, in the next 25 years, it will be easier for the next generation to fight for it,” he said.

While he was not endorsing MMC, Gerochi debunked PECO’s claims that the new player has no experience or resources.

He cited that the firm is identified with ports magnate Enrique Razon, one of the Top 10 billionaires in the Philippines, according to Forbes Magazine.

SOURCE: The Daily Guardian

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