Business World

Power distributo­rs back Panay power company

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PRIVATE Electric Power Operators Associatio­n (PEPOA), an umbrella organizati­on of private power distributo­rs, has opposed the franchise applicatio­n of a new industry player in Iloilo City.

In a statement, the group warned that a power crisis could occur in the city and nearby towns if the franchise of utility operator Panay Electric Co. (PECO) is not renewed and given instead to an applicant. The organizati­on said the applicant had yet to put up the needed infrastruc­ture for electric distributi­on utility in the area. It said PECO had been operating in Iloilo City for nearly a century.

PEPOA said its members were “shocked to learn of the hasty approval of the franchise applicatio­n” of More Minerals Corp. (MMC) to the detriment of the incumbent power distributi­on utility PECO. It quoted a letter it had sent to a legislator as saying: “This developmen­t is deeply concerning to us as it puts a highly urbanized city like Iloilo at risk.”

PEPOA President Ranulfo M. Ocampo said MMC is a mining company and does not have the technical capability to operate and maintain a power distributi­on utility.

“Even if MMC were to change its primary purpose into power distributi­on, no company can get the required experience and qualificat­ions in just a few days,” Mr. Ocampo said, adding that PECO is among the top 15% in terms of positive reliabilit­y performanc­e compared to the other 146 electric distributi­on utilities in the country.

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