‘POWER TUG-OF-WAR’: Biz club asks Congress to keep Ilonggo consumers in mind
- TBN News
- Oct 15, 2018
- 2 min read

THE Iloilo Business Club (IBC) appealed to Congress to put Ilonggo consumers on top of their minds in choosing the company that will distribute power in Iloilo City.
Congress is currently deliberating on two franchise applications.
One is the franchise renewal of Panay Electric Company (PECO), the existing distributor in the city. Its 25-year franchise is set to expire in January 2019.
The other is by a new player, MORE Electric and Power Corp. (MORE Power) which is controlled by business tycoon Enrique Razon.
The House of Representatives recently passed on third and final reading MORE Power’s franchise application.
“Whatever decisions they come up with, either it will be PECO or the new player, it should always be to the advantage of the Ilonggos,” said IBC Executive Director Lea Lara.
Lara said it is too premature to comment and claim that MORE Power is a better firm as they are still not privy on what it can offer. She added that the firm has yet to approach the business sector to present its investment plan.
“We are vulnerable to this. In our desire to replace PECO thinking it’s really the best plan, we ended up with a company which is unknown to us. So it is really difficult to comment,” Lara said.
PECO has been bugged by complaints from several consumers relative to alleged overbilling.
Lara refrained from commenting if the current power tug-of-war will affect local investment.
Power is a major factor that businessmen consider before investing in an area.
“If ever there is a transition period…it’s too difficult to comment as of the moment provided that we do not have enough information,” she said.
Lara said they share the same stand with the Iloilo Economic Development Foundation (ILED) that the firm that will bag the franchise should offer a world class service to Ilonggos.
The Iloilo City Council earlier authorized the city government to intervene in the deliberation of franchise issuance “to protect the welfare of Ilonggos.”
They unanimously approved the resolution sponsored by R Leoni Gerochi authorizing the latter, Mayor Joe Espinosa and Councilor Joshua Alim as the city’s representatives during the deliberation.
Gerochi, who was then chairman of the Committee on Transportation, Energy, and Public Utilities, said the intervention would allow the Ilonggos’ voices to be heard in Congress as they are the ones directly affected by the issue on power.
The Department of Energy (DOE) earlier assured Ilonggos that power distribution services would continue despite the still undecided franchise issue.
“The DOE stands with its secretary, ensures na kahit undecided pa si Congress regarding the franchise ay tuloy-tuloy ang serbisyo,” DOE Undersecretary Felix William Fuentebella said.
He said that the decision of the congress and its underlying consequences should be thoroughly laid down to whoever gets the franchise.
“Pero pinapaaral pa ng secretary kung ano ang mga options na gagawin ng DOE,” he stated.
He also noted that there is a constitutional provision which says that “in cases of emergency government can take over a public utility,” a power distributor in this matter.
But the DOE does not anticipate the government to assume control of a power distributor.
“We don’t want that to happen, we want the peaceful and smooth resolution ng ating mga stakeholders dito. At least klaro na para sa mga consumers, para sa mga taga Iloilo City, that they have the constitutional provision,” Fuentebella added.
SOURCE: The Daily Guardian
Special thanks to: The Daily Guardian

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