House urged to junk bill allowing MORE Power to expand franchise area

A group of electric cooperatives in the country is opposing the move to expand the franchise area of More Electric and Power Corporation (MORE Power), Iloilo City’s sole power distributor.

The proposed expansion, according to the Philippine Rural Electric Cooperatives Association Inc. (PHILRECA), “would be a violation of Republic Act (RA) 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA) and RA 6038 or the National Electrification Administration Act.”

“The areas being added to the franchise of MORE Power are already being served by Iloilo Electric Cooperatives (ILECO) I, II and III,” the group said in its position letter sent to Congressman Franz Alvarez, chairperson of the House Committee on Legislative Franchises, dated Sept. 28.

Jointly filed by Congressmen Braeden John Biron of Iloilo’s Fourth District and Michael Gorriceta of Iloilo’s Second District, House Bill 10271 seeks to allow the Razon-owned MORE Power to establish presence in 15 towns and one component city of Iloilo province.

PHILRECA also highlighted that the premise that “MORE Power has reduced electric rates in Iloilo City from one of the highest in the country to one of the lowest in the country” is not only without context but is actually flawed.

“In the long run, MORE Power cannot offer cheaper and more affordable electricity and energy cost in the area being added; instead, it will only charge the consumers a higher rate,” the group said.

“Barking up the wrong tree: Differences in consumer’s power rates are primarily due to generation cost, not distribution cost,” it added.

PHILRECA is hoping that these concerns are “enough for the committee to consider that expanding the franchise of MORE Power to cover areas already being served by electric cooperatives will not benefit the public.”