The Energy Regulatory Commission (ERC) has revoked the provisional permit for the continued operation of Panay Electric Co. (Peco), paving the way for the Razon group’s More Electric and Power Corp. to take offer the electricity distribution business in Iloilo City.
In a three-page letter dated March 5 and addressed to the chief executives of both firms—Roel Castro of More and Luis Miguel Cacho of Peco—ERC Chair Agnes Devanadera said the regulator made the decision in a meeting held on the same day.
The resolution was made with the ERC “mindful of its mandates to protect consumer interest, ensure uninterrupted electric service to consumers in Iloilo City and prevent chaos and confusion among said customers as to who is authorized to operate the distribution system in the area.”
Devanadera said the ERC resolved to revoke the provisional certificate of public conveyance and necessity issued to Peco “after determining that More has established or acquired its own distribution system and verified More’s complete transition to full operations.”
At the same time, a provisional authority will be issued to More authorizing the company to operate the city’s power distribution network as well as to charge consumers at rates that Peco was currently allowed.
Further, More is directed to make available the electricity supply needed to address consumer demand in that franchise area, following Republic Act No. 11212, which granted More such franchise.
“While More is unable to secure the certificate of exemption from the Department of Energy necessary to enter into emergency power supply agreements, it shall source its power requirements from the current … suppliers of Peco,” Devanadera added.
The ERC resolution was for both parties’ “strict compliance.”