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SC upholds More Power's right to distribute electricity to Iloilo City consumers
SC upholds More Power's right to distribute electricity to Iloilo City consumers
The Supreme Court (SC) has affirmed the authority of More Electric and Power Corporation (More Power) to operate the electricity distribution facilities in Iloilo City.
In a decision issued on Tuesday, the SC – in an 8-6 vote -- granted two petitions filed by More Power against Panay Electric Company, Inc. (PECO), specifically the case that challenged the Mandaluyong city trial court’s ruling which declared unconstitutional certain provisions in More Power’s franchise.
With its decision, the SC, in effect, upheld the validity of More Power’s franchise under Republic Act No. 11212 that was enacted into law on Feb. 14, 2019.
A copy of the SC’s full court decision was not available.
In a statement, SC’s public information office (PIO) Chief Atty. Brian Keith F. Hosaka said:
“The Supreme Court en banc (full court) ruled yesterday, September 15, in favor of More Electric and Power Corporation in the following petitions: More Electric and Power Corporation vs. Panay Electric Company, Inc. (GR No 248061) and Republic of the Philippines, More Electric and Power Corporation vs. Panay Electric Company, Inc. (GR No. 249406.
“In granting the petitions, the Supreme Court reversed the judgment of the regional trial court (RTC) of Mandaluyong City Branch 209 in Civil Case No. R-MND-19-00571, and declared Sections 10 and 17 of RA No. 11212 constitutional.”
Those who voted in favor of More Power were Chief Justice Diosdado M. Peralta, Senior Associate Justice Estela M. Perlas Bernabe and Associate Justices Alfredo Benjamin S. Caguioa, Alexander G. Gesmundo, Jose C. Reyes Jr., Ramon Paul L. Hernando, Rosmari D. Carandang, and Edgardo L. De Los Santos. Reyes wrote the decision.
Those who dissented were Associate Justices Marvic Mario Victor F. Leonen, Amy C. Lazaro Javier, Henri Jean Paul B. Inting, Rodil V. Zalameda, Mario V. Lopez, and Samuel H. Gaerlan. Associate Justice Priscilla J. Baltazar Padilla did not take part in the deliberation of the two cases.
The original franchisee in Iloilo City was Panay Electric Co. (PECO) but it failed to renew its franchise when it expired.
Last year, the Mandaluyong City regional trial court (RTC) – in a case lodged by PECO -- declared unconstitutional Sections 10 and 17 of RA 11212.
Sections 10 and 17 authorized More Power to “establish, operate, and maintain, for commercial purposes and in the public interest, a distribution system for the conveyance of electric power to end users in Iloilo City.”
The two sections gave More Power, as the new distribution utility in Iloilo City, the powers of eminent domain and to expropriate any asset, including existing distribution assets in the city.
More Power elevated the issue before the SC. Late last year, the SC issued a temporary restraining order (TRO) that stopped the implementation of the trial court’s ruling.
Last month, about 65,000 electricity consumers in Iloilo City asked the SC to immediately settle the legal issues between the two distribution utilities.
The plea was aired by Halley Alcarde, general manager of Western Visayas Transport Cooperative (WVTC), who told the SC that the High Court’s ruling will have tremendous impact on consumers.
Alcarde said that in resolving the legal issue, the SC should “take into consideration the plight of the 65,000 power consumers in the city who will be directly impacted by the decision of the court.”
He said that More Power holds the legislative franchise to operate the electricity distribution system of Iloilo City and has been granted a business permit by the Iloilo City government and Certificate of Public Convenience and Necessity (CPCN) by the Energy Regulatory Commission (ERC).