‘SERVICES WILL CONTINUE’: DOE assures Ilonggos amid power franchise tug-of-war
- TBN News
- Oct 10, 2018
- 3 min read
THE Department of Energy (DOE) assured Ilonggos that power distribution services would continue despite the still undecided franchise fracas between Panay Electric Company (PECO) and MORE Electric and Power Corp. (MORE Power).
“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.
MORE Power wants to secure a franchise to distribute power in Iloilo City while PECO is awaiting the renewal of its franchise that will expire in January 2019.
Fuentebella said they have been monitoring the services of PECO through their Consumer Welfare and Promotion Office.
Like any other power distributor in the country, the department also received complaints from PECO consumers.
“Most of the time, its billing, ang mga complaints, and sometimes the quality of service,” he said.
The DOE also hopes that the conflict between the two power firms will be resolved.
“As much as possible, we hope that they would settle their issues,” Fuentebella mentioned.
He said that the decision of the congress and its underlying consequences should be thoroughly laid down to whoever wins 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 mgastakeholders dito. At least klaro na para sa mga consumers, para sa mga taga Iloilo City, that they have the constitutional provision,” Fuentebella added.
MORE Power president and chief executive officer Roel Z. Castro earlier said they tapped persons who have vast experience in power distribution.
Castro also introduced the initial personnel comprising the management who have expertise and exposure in the mining industry.
The team includes Amador T. Guevarra, chief operating officer; Ed Ceraspe, chief technical officer; and Atty. Cyril del Callar, legal counsel.
Gueverra is currently the general manager of one electric cooperative with over 200,000 connections. He was part of the management team of the takeover of one electric cooperative in Mindanao.
Ceraspe was with the National Grid Corp. of the Philippines (NGCP). He was assigned in the Panay-Negros area and is familiar with the terrain.
“If we talk of technical and operational capabilities, I think we have it,” Ceraspe said.
Castro said their financial resources are also stable, with P2-billion as its capital. Its mother company, Monte Oro Resources and Energy Inc. (MORE) owned by businessman Enrique K. Razon, is the same company that took part in the privatization of the National Transmission Corporation.
But PECO assistant vice president for operations Randy Pastolero said MORE Power will be racing against time in meeting the technical and regulatory requirements if ever the latter bags the franchise to distribute power in Iloilo City.
Pastolero said granting that PECO’s franchise will not be renewed and will expire in January 2019, MORE Power will not have enough time for the transition period.
“While they (MORE Power) may have the technical and financial capability, one issue is they do not have the facilities. Our concern is that what will happen to the power supply in between? Because MORE Power would need at least a year to start and finish building their facilities,” he said.
Pastolero added that with PECO’s facilities still existing, MORE Power does not have available areas to put up its own system.
He added said that meeting the regulatory approval would also take more time. All plans should be submitted to the Energy Regulatory Commission (ERC) for approval after a series of public hearings.
Construction of facilities has to abide by the Philippine Electrical Code and needs clearance from the Department of Public Works and Highways (DPWH).
Another problem is that MORE Power has to make its rate calculations available as well as forge power supply contracts, connections with the National Grid Corporation of the Philippines, and acquire substations, among others.
Pastolero said their management is firm that they will not negotiate with MORE Power for the acquisition of their assets because they also have a pending application with the Congress.
SOURCE: The Daily Guardian
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