The Supreme Court’s decision that rejected the request of More Electric and Power Corporation (MORE Power) to issue a temporary restraining order (TRO) against the ruling of Mandaluyong Regional Trial Court (RTC) was a “major legal victory” for Panay Electric Company (PECO), the latter’s top official claimed.
“The Court resolves to deny the prayer for issuance of a TRO and/or writ of preliminary injunction,” part of a resolution issued by the SC’s Second Division read.
The resolution was dated August 14, 2019.
PECO Administrative Manager Marcelo Cacho, during a press conference on Tuesday, Sept. 24, said they were “happy” with the High Court’s decision, “which effectively froze a large power player’s effort to take over our assets.”
“This means that we will be able to continue to serve Iloilo and remain a partner in its progress and growth,” he further said.
According to Cacho, the SC proved that “[it is] impervious to the pressures of big business.”
“We are again thankful that the rule of law and the supremacy of the Constitution prevailed,” he said.
On July 1, 2019, the Mandaluyong RTC declared Sections 10 and 17 of RA 11212 “void and unconstitutional for infringing on PECO’s rights to due process and equal protection of the law.”
This decision made permanent a temporary restraining order (TRO) it issued in March 2019 restraining MORE Power from proceeding with the expropriation.
“Consequently, PECO has no obligation to sell and respondent has no right to expropriate PECO’s assets under Sections 10 and 17 of RA No. 11212; and, PECO’s rights to its properties are protected against arbitrary and confiscatory taking under the relevant portions of Sections 10 and 17 of RA No. 11212,” the Mandaluyong RTC said.
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.
Republic Act No. 11212 was signed by President Rodrigo Duterte on Feb. 14, 2019. It granted MORE Power a franchise to “establish, operate and maintain a distribution system” in Iloilo City.
MORE Power is owned by tycoon Enrique Razon Jr.
The denial of TRO prevented MORE Power from expropriating the PECO’s assets while the SC is making its decision whether or not to upheld the Mandaluyong RTC’s ruling.
“We will abide by whatever decision the SC will finally issue on the petition,” Cacho said.
The SC, in a separate resolution dated Sept. 2, 2019, declared MORE Power and Iloilo City RTC Branch 37 Judge Marie Yvette D. Go’s conduct of “vigorously pursuing the expropriation case while appealing at the same time the judgment of the Mandaluyong RTC” as “constituting an insidious form of forum shopping, both direct and indirect contempt.”
A day before her inhibition upon PECO’s motion, Go issued an order dated August 14, 2019 granting a writ of possession in favor of MORE Power in disregard og the judgement of the Mandaluyong RTC and of pendency of the instant case.
“The Court resolves to require [MORE Power] and Go to file comment thereon whithin 10 days from notice,” the SC stated.
Sought for comment, MORE Power said it would consult first its legal team.
Cacho said MORE Power is “truly serious to serve the people of Iloilo, they will do what it takes to invest”
“Do what Pres. Duterte has called on all businesses: ‘Build, Build, Build’, and not take, take, take. And quoting the President himself: ‘Wag mag-agaw ng negosyo,” he added.
The provisional certificate of public convenience and necessity (CPCN) issued by the Energy Regulatory Commissionb (ERC) allows PECO to continue its operations to ensure uninterrupted supply of electricity in the city.
“PECO shall operate the distribution system until the establishment or acquisition by the grantee, MORE Power of its own distribution system and it completes its two-year transition towards full operations,” the ERC stated.
Cacho said MORE Power “is running against a two-year deadline under its franchise, otherwise its franchise will be deemed automatically revoked.”IMT
