Solon warns of massive brownouts in Iloilo City

The House of Representatives should brace for public censure if Iloilo City experiences power disruptions that could last for months or even years as a result of its failure to resolve the legislative franchise issue between two power companies.

Anak Mindanao partylist Rep. Makmod Mending issued the warning as he called for the renewal of the legislative franchise granted to the Panay Electric Company (PECO).

Mending said the decision by the House Committee on Legislative Franchise to recommend the grant of a franchise to a new power started the problem.

He said committee chairman and Palawan Rep. Franz Alvarez should explain why PECO’s application for renewal was ignored, notwithstanding the fact that the Energy Regulatory Board (ERB) authorized the firm to continue operating as early as November 22, 2017.

Mending warned that as a result of the denial of PECO’s application a power crisis could engulf Iloilo City.

He said the least that Alvarez could have done was to allow a provisional extension of PECO’s franchise to guarantee a smooth transition in case another firm takes over its operations.

“There should be two years extension of PECO’s franchise at the maximum to allow smooth transition and avoid power disruptions,” said Mending, who co-authored the bill granting PECO a franchise extension.

Other co-authors include Representatives Arnolfo Teves Jr. (PDP-Laban Negros Oriental); Joseph Stephen Paduano (Abang Lingkod); Aniceto Bertiz III (ACTS OFW) and Xavier Jesus Romualdo (PDP-Laban, Camiguin).

Lawmakers assailed the grant of legislative franchise to MORE Electric Corporation to operate in Iloilo, notwithstanding PECO’s existing franchise.

The plenary voted to grant the franchise on Monday.

House Asst. Minority Leader and Coop Nattco Rep. Anthony Bravo said the House decision will impact Iloilo City residents.

Randy Pastolero, a PECO executive, said the approval of MORE’s franchise could set a bad legislative precedent in the power industry because it threatens the existence of franchise-holding power firms.

“A power grab, that’s what it is,” said Pastolero.

PECO’s alarm is echoed by the Private Electric Power Operators Association (PEPOA) which also opposed the granting of franchise to MORE Minerals Corp (MMC), whose corporate name and business purposes were allegedly changed to MORE Electric and Power Corp. (MEPC), in reaction to criticisms that it did not have the technical and personnel assets to operate an electricity distribution network and was purportedly undercapitalized.

PEPOA President, Ranulfo M. Ocampo wrote the Alvarez panel to declare its opposition to granting a franchise to MEPC.