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Distributor neither has franchise nor CPCN




PECO, the former power distributor of Iloilo City, suffered another legal beating after the Regional Trial Court denied its motion for reconsideration against a decision issued on 16 April this year.

This developed as Judge Emerald Requina-Contreras of Regional Trial Court Branch 23 issued an order dated 2 July 2020 stating that the court “already cited the reasons why (it) cannot grant the omnibus motion to enforce the addendum and urgent ex parte motion to order the sheriff of the RTC Iloilo City to implement its addendum.”

In dismissing the motion, the court reiterated that PECO has no more franchise to operate the distribution system and no certificate of public convenience and necessity (CPCN) to operate while MORE Power has both the franchise and the provisional CPCN.

“Defendant PECO should know this better as this has been what they have been invoking and the very reason why the court crafted the addendum,” the court said.

PECO’s franchise expired on 19 January 2019 as Congress opted to allow MORE Power to take over the distribution functions in Iloilo City. Republic Act 11212 granting MORE the power’s franchise became a law on 14 February 2019.

An executive order dated 8 May 2020 issued by Iloilo City Mayor Jerry P. Treñas revoked PECO’s business permit after PECO lost both its franchise and CPCN, following the revocation issued by the Energy Regulatory Commission (ERC).

The court decision ordered the sheriff “to place More Power in possession” of PECO properties identified for expropriation.

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