Power producer Global Business Power Corporation (GBP) admitted that the legal dispute between Panay Electric Company (PECO) and MORE Electric and Power Corporation (MORE Power) affected its “future plans.”
“We don’t know who to talk to,” GBP president Jaime Azurin said in a press conference at Courtyard by Marriott in Iloilo City.
GBP, through its subsidiary Panay Energy Development Corporation (PEDC), owns two 84 megawatt (MW) coal-fired generation plants and a 150-MW power plant in Barangay Ingore, La Paz district.
PEDC is one of PECO’s sources of power. In 2010, the two power firms inked a 25-year supply agreement.
The power-generating company has a plan to build another 150-MW power plant in the city.
“We are just waiting for the right time. We will negotiate with whoever sits as Iloilo City’s power distributor,” said Azurin.
The additional unit seeks to meet the growing demand for electricity not only in the city but also in the whole Western Visayas region.
“In the last 2 to 3 years, Western Visayas has grown much faster than the rest of the Philippines,” said Azurin.
“It has been growing at an average of 7 to 8 percent. If the GRDP (gross regional domestic product) is growing by 7 to 8, then power consumption is also increasing by 7 to 8 percent,” he added.
PECO, whose franchise expired last January, continues to operate under a provisional Certificate of Public Convenience and Necessity issued by the Energy Regulatory Commission (ERC).
On the other hand, MORE Power, a firm owned by tycoon Enrique Razon Jr., secured a legislative franchise to operate as Iloilo City’s sole power distributor for 25 years.
Republic Act (RA) No. 11212 was signed by President Rodrigo Duterte last February.
PECO, however, questioned the two sections of the law.
The Supreme Court is still hearing a petition filed by MORE Power to reverse the Madaluyong Regional Trial Court’s (RTC) ruling.
The lower court declared Sections 10 and 17 of RA No. 11212 “void and unconstitutional”, and made permanent a TRO it issued last March 14.
Section 10 authorizes MORE to exercise the power of eminent domain and acquire such private property as is actually necessary for the realization of the purpose for which the franchise is granted.
Section 17 states the power of MORE, as grantee, to effectively acquire power distribution assets. The distribution assets that exist within the franchise area could only refer to those of PECO.IMT
