PECO seeks to reverse Razon power firm's takeover in Iloilo
Published Mar 1, 2020 12:00 am
By Tara Yap
Embattled Panay Electric Co. (PECO) is seeking legal remedies to reverse the takeover of its Iloilo City power distribution by the firm owned by port magnate Enrique Razon Jr. in what is known as the first time a privately-owned public utility in the country was transferred from one private firm to another.
PRAYERS FOR PECO—People flock to the main office embattled Panay Electric Co. (PECO) in Iloilo City for a prayer and candlelight vigil over the weekend. This comes after the February 28 takeover of PECO facilities and operations by MORE Electric and Power Corp. (MORE Power), PECO’s rival. (Tara Yap / MANILA BULLETIN)
“What we witnessed is unprecedented, irregular and illegal,” said Atty. Estrella Elamparo, PECO’s chief legal counsel.
Elamparo was referring to the February 28 takeover by MORE Electric and Power Corp. (MORE Power), Razon’s firm, of PECO’s five electrical substations and operations after sheriffs served the writ of possession (WOP) issued by Iloilo City Regional Trial Court (RTC) Branch 23.
“All of these can still be undone. They may have successfully taken over physical possessions, but the fight is not yet over. We will pursue all legal remedies,” Elamparo added.
Elamparo reiterated the issue has previously reached the Supreme Court (SC) and it is only when the SC has decided that there will be finality.
To recall, MORE Power has been granted a 25-year franchise as Iloilo City’s power distributor since February 2019 and failed to initially operate since it did not have its own facilities.
MORE Power only banked on two provisions of the law granting its franchise that it can take possession of PECO’s assets and operations. But a separate lower court declared it as unconstitutional for allegedly infringing on PECO’s rights, which the SC is currently reviewing.
PECO, the 97-year power distributor in the city, that had its franchise expire last January 2019, temporarily continued power distribution with a provisional permit from the Energy Regulatory Commission (ERC).
With MORE Power’s February 28 takeover of five substations and operations, PECO still asked the Court of Appeals (CA) for a temporary restraining order (TRO).
PECO will also file Monday, March 2, a motion for inhibition against RTC Branch 23 Judge Emerald Contreras for allegedly manifesting bias and impartiality in favor of MORE Power and to stop the proceedings for the expropriation case.
PECO Administrative Manager Marcelo U. Cacho also questioned the takeover of PECO operations, which is contrary to RTC Branch 23’s WOP addendum “to maintain the status quo of operations”.
The WOP addendum further states the operations “should still be handled by PECO personnel who have technical expertise” and MORE Power “may deploy their personnel to oversee the substations”.
Meanwhile, supporters of PECO have joined prayer vigils starting this weekend as they start calling for justice for a locally-grown company that is mostly owned by the Cacho family. First Philippine Holdings Corp. of the Lopez Group, which traces its roots in Iloilo, is a minor shareholder of PECO.
PRAYERS FOR PECO—People flock to the main office embattled Panay Electric Co. (PECO) in Iloilo City for a prayer and candlelight vigil over the weekend. This comes after the February 28 takeover of PECO facilities and operations by MORE Electric and Power Corp. (MORE Power), PECO’s rival. (Tara Yap / MANILA BULLETIN)
“What we witnessed is unprecedented, irregular and illegal,” said Atty. Estrella Elamparo, PECO’s chief legal counsel.
Elamparo was referring to the February 28 takeover by MORE Electric and Power Corp. (MORE Power), Razon’s firm, of PECO’s five electrical substations and operations after sheriffs served the writ of possession (WOP) issued by Iloilo City Regional Trial Court (RTC) Branch 23.
“All of these can still be undone. They may have successfully taken over physical possessions, but the fight is not yet over. We will pursue all legal remedies,” Elamparo added.
Elamparo reiterated the issue has previously reached the Supreme Court (SC) and it is only when the SC has decided that there will be finality.
To recall, MORE Power has been granted a 25-year franchise as Iloilo City’s power distributor since February 2019 and failed to initially operate since it did not have its own facilities.
MORE Power only banked on two provisions of the law granting its franchise that it can take possession of PECO’s assets and operations. But a separate lower court declared it as unconstitutional for allegedly infringing on PECO’s rights, which the SC is currently reviewing.
PECO, the 97-year power distributor in the city, that had its franchise expire last January 2019, temporarily continued power distribution with a provisional permit from the Energy Regulatory Commission (ERC).
With MORE Power’s February 28 takeover of five substations and operations, PECO still asked the Court of Appeals (CA) for a temporary restraining order (TRO).
PECO will also file Monday, March 2, a motion for inhibition against RTC Branch 23 Judge Emerald Contreras for allegedly manifesting bias and impartiality in favor of MORE Power and to stop the proceedings for the expropriation case.
PECO Administrative Manager Marcelo U. Cacho also questioned the takeover of PECO operations, which is contrary to RTC Branch 23’s WOP addendum “to maintain the status quo of operations”.
The WOP addendum further states the operations “should still be handled by PECO personnel who have technical expertise” and MORE Power “may deploy their personnel to oversee the substations”.
Meanwhile, supporters of PECO have joined prayer vigils starting this weekend as they start calling for justice for a locally-grown company that is mostly owned by the Cacho family. First Philippine Holdings Corp. of the Lopez Group, which traces its roots in Iloilo, is a minor shareholder of PECO.