PECO-MMC TUG OF WAR: Mayor to abide by Congress’ decision

MAYOR Jose “Joe” Espinosa III said he leaves it to the Congress to decide on what firm should distribute electricity in Iloilo City.

Espinosa made the statement after the House of Representatives’ committee on legislative franchises endorsed the franchise application of More Minerals Corp. (MMC) as Iloilo City’s new power distributor.

MMC’s application will have to hurdle the House plenary.

“Whatever will be the decision, and then if all is in order, we will abide by the decision of the Congress,” Espinosa said, adding that the issuance of franchise to a power firm is under the jurisdiction of the Senate and House of Representatives.

Panay Electric Company (PECO), the existing distributor in the city, had opposed MMC’s franchise application.

In an official statement, PECO said the other player allegedly “has no experience in the business of power distribution” and has “no track record to show since they are a mining company as stated in their articles of incorporation.”

PECO also accused the House committee for sitting on the renewal of its franchise, which will expire in 2019.

Espinosa clarified that he is not against the renewal of PECO’s franchise only that he is taking a “hands off” stance on the issue.

“I will leave it to the Congress to act on it,” he said.

Iloilo City lone district Rep. Jerry Treñas said he would support whichever firm will bag the franchise to distribute power in the city.

“Ang stand ko, kun sin-o gid man ang mahatagan sang franchise, I will give my 120 percent support,” he said.

But Treñas clarified that he is not a member of the franchise committee and that he will inhibit from the issue as his law office is under retainer by PECO.

“For me there is a conflict of interest. So after the committee level, it will have to be approved in plenary. My position is still the same. I will have to inhibit,” he said.

Meanwhile, Councilor R Leoni Gerochi, chair of the Committee on Transportation, Energy and Public Utilities of the City Council, said he will file a resolution urging the city government to intervene in the deliberation of franchise grant to MMC.

The resolution which is “pushing for terms and conditions that should be included in the franchise to ensure that the welfare of the consumers are upheld and protected, and likewise to participate in all the processes related to the application and approval of the franchise” will be proposed during the regular session of the council on Oct 2.

Gerochi said that the Lower House has conducted several hearings regarding PECO’s franchise, and later on on MMC’s application, but have not sought the sentiment of those in Iloilo City.

“Supposedly we should have a representative in Congress to check, intervene and ensure that we are protected,” he said.

He added that the franchise committee may not be privy of the power situation in the city and will not suffer the repercussions of their decision.

Earlier, the Private Electric Power Operators Association (PEPOA) also warned of a looming power crisis in Iloilo City if the franchise to distribute electricity is given to a company that allegedly has no infrastructure.

In a letter sent to Rep. Franz Alvarez, who chairs the franchise committee, PEPOA opposed the application of MMC.

“We were shocked to learn of the hasty approval of the franchise application of MMC to the detriment of the incumbent distribution utility, (PECO).This development is deeply concerning to us as it puts a highly urbanized city like Iloilo at risk,” the association said.

PEPOA president Ranulfo Ocampo said MMC is primarily a mining company and allegedly does not have the technical capability to operate and maintain a power distribution utility.

“Even if MMC were to change its primary purpose into power distribution, no company can get the required experience and qualifications in just a few days,” according to Ocampo. While PECO has been in the public utility business for 95 years, he added.

SOURCE: The Daily Guardian

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