ILOILO CITY — Two firms are competing to get the approval of Congress to be granted the franchise to operate an electric utility in Iloilo City.
Panay Electric Company (PECO), the existing electricity distributor, is now waiting for the House Committee on Legislative Franchises to act on its application for renewal of franchise for another 25 years while the application of the new player More Electric and Power Corporation (MORE) has been approved on second reading.
PECO’s 25-year franchise is set to expire in January 2019.
Engr. Randy Pastolero, assistant vice-president for operations of PECO, in an interview Wednesday, said while MORE may have the technical and financial capability, yet they lack facilities as of now.
He added their competitor has admitted needing at least a year to put up their own facilities should negotiations with PECO for the acquisition of their assets fail.
“Our reservation is that what’s going to happen to our power supply in between because our franchise will be expiring 2019 in January?” Pastolero said.
He also questioned where MORE will set up its transmission facilities and if they have already gone through the preparations for regulatory approval.
“You will have to submit all plans to the ERC (Energy Regulatory Commission),” he said, which entails public consultation prior its approval.
Pastolero also raised the possible rate that will be imposed by MORE should they get the franchise.
Meanwhile, MORE president Roel Castro, in a press conference on Tuesday, said they are already putting up together their teams and hiring personnel in preparation for a franchise approval.
“So when the crossover period comes, we will be equipped with people, the equipment,” Castro said, adding there are a lot of talents that they can tap to run the utility.
He added that while they will also be investing in equipment, there are plenty of third party equipment available for the crossover.
“It’s not as if it’s too specialized that nobody can do it, except the existing incumbents,” he said.
Castro said they decided to invest in Iloilo City considering the issues besetting the distribution of electricity.
He also allayed apprehensions of possible power blackout in case no franchise will be granted in 2019.
“I hope it is going to be smooth. Our motivation is to avoid any incident and we are prepared should there be any emergency situation,” he added.
The Iloilo City Sangguniang Panlungsod (SP or City Council) on Tuesday passed a resolution authorizing Mayor Jose Espinosa III and selected members of the council to intervene in the ongoing deliberations by pushing for terms and conditions.
Among the terms in the franchise is the need to be publicly listed to ensure transparency and give the city government the oversight function to inspect and certify, on regular basis, the billing system of the franchisee. (Perla Lena/PNA)
