Close  

More Power granted 25-year distribution franchise in Iloilo City

/ 08:03 PM February 19, 2019

More Power logo
ILOILO CITY — President Rodrigo Duterte has signed a law granting More Electric and Power Corp. (More Power), a firm controlled by billionaire Enrique Razon, a 25-year power distribution franchise in Iloilo City.

In a letter dated Feb. 14, Executive Secretary Salvador Medialdea informed Speaker Gloria Macapagal-Arroyo that the President had signed Republic Act No. 11212.

ADVERTISEMENT

Iloilo has around 55,000 consumers, including residences and offices.

“Once we received the official copy from the Office of the President, we will immediately publish it in a newspaper with nationwide circulation for 15 days for it to become effective,” according to the More Power in an earlier statement.

FEATURED STORIES

MORE UPDATE:Our franchise bill is now a law. Our sources in Malacañan informed us that it was signed by President…

MORE Power Iloilo 发布于 2019年2月16日周六

When the franchise takes effect, this will start a maximum two-year period transition from the distribution operations of Panay Electric Company (Peco).

Within the transition period, More Power can establish or acquire its distribution system.

Peco’s franchise expired on Jan. 18, 2019, but it will continue to operate until May this year under a Certificate of Public Convenience and Necessity issued by the Energy Regulatory Commission.

Owned by the Cacho family, Peco has been operating in the city since 1923.

ADVERTISEMENT

More Power said it would be willing to negotiate with Peco’s owners for the acquisition of their facilities “at a fair price.”

More Power President Roel Castro earlier said his company was planning to infuse P700 million in capital in a three-year rehabilitation program.

The company also promised to improve customer care services and to lower rates by tapping multiple sources of power, including a considerable portion from the Wholesale Electricity Spot Market.

Peco has been plagued with complaints of poor service and customer case and high electricity rates.

But it insists that it has upgraded its facilities and improved its services and that its rates are within the range or even lower than those charged by other power distributors in the country.

The company insists that it will pursue the renewal of its franchise and has no plans to sell its assets to More Power.

A bill filed on July 31, 2017, providing for the renewal of Peco’s franchise to another 25 years did not prosper after being submitted to the House Committee on Legislative Franchises. /atm

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Iloilo City power distributor, More Electric and Power Corp., More Power, Panay Electric Co., Peco, Rodrigo Duterte
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.