Razon-led MORE Electric and Power Corporation will be expanding its power distribution business in Iloilo province, after the proposed amendments to its 25-year power utility franchise had lapsed into law last July 30.
Under Republic Act 11918 or the modified MORE Power franchise, it was expressly stated that the company of Razon can now provide electricity services to the cities of Iloilo and Passi; as well as the municipalities of Alimodian, Leganes, Leon, New Lucena, Pavia, San Miguel, Santa Barbara, Zarraga, Anilao, Banate, Barotac Nuevo, Dingle, Duenas, Dumangas and San Enrique.
The service areas granted to Razon under the franchise of its MORE Power include the domains previously served by Iloilo Electric Cooperatives (ILECO) I and III -- the power utilities that served the electricity needs of consumers in those jurisdictions for several decades.
Essentially, it was noted that the expansion of MORE Power’s service areas covered additional one city and 15 towns and that will be for the 25-year duration of the firm’s franchise.
MORE Power’s entry into electricity distribution was initially carried out via the controversial takeover of the power distribution assets of private firm Panay Electric Company (PECO) – which ultimately landed into the hands of the Razon-controlled company via a ruling rendered by the Supreme Court.
RA 11918 has just been one of the legislated acts spared from the series of ‘vetoes’ handed down by President Ferdinand Marcos Jr. – primarily on those that been left pending after the departure of the Duterte administration.
The law states that grantee-MORE Power “shall not sell, lease, transfer, grant the usufruct of, nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, nor merge with any other corporation or entity, nor shall transfer the controlling interest of the grantee – whether as a whole or in part.”
When MORE Power cornered its power distribution venture in Iloilo City, the company had committed to pump in massive investments to expand the load networks as well as upgrade the distribution facilities so it can finally solve lingering power interruptions in the area – although at this point, that is a promise yet to be delivered by the utility firm.
Razon’s current business growth focuses immensely in the power sector – not just with electricity distribution, but there is even more aggressive capital infusion that his companies have been pursuing in power generation.
At this stage, several unsolicited proposals have been lodged with Manila Electric Company (Meralco) for the Razon group to supply mid-merit power capacity requirements of the utility firm – and these are to be generated using renewable energy (RE) resources plus battery storage systems.