Metro Manila (CNN Philippines, January 18) — The Department of Energy on Friday assured residents of some cities and municipalities in Iloilo that there will be no power service interruption in the area, despite main electricity provider Panay Electric Company’s (PECO) impending franchise expiry.
In a media briefing, Energy officials said PECO will continue being the main service provider in Iloilo until the Office of the President officially grants a new entity’s franchise.
PECO’s franchise will officially expire on Saturday, January 19.
“The Department of Energy would like to reassure our kababayans in Iloilo that there would be no power interruptions. PECO (Panay Electric Company) remains to be the power service provider in the area,” DOE Assistant Secretary Redentor Delola said.
“Their operations will continue even after the expiration of their franchise.”
Energy Undersecretary William Fuentebella– citing Article 5, Section 3 of the Energy Regulatory Commission resolution No. 5 Series of 2008– says PECO can still operate until a new power provider is officially granted Congressional franchise.
“In the interest of public service, the entity whose certificate of public convenience is revoked, shall be provisionally allowed to continuous operation kahit tapos na (ang franchise) until may bagong pumasok na transmission or distribution of electricity provider (even if its franchise is already expired, until a new entity comes in),” Fuentebella added.
The franchise of the new entity, which was disclosed as More Electric Power Corp., has been approved by both the Senate and House of Representatives, but is still up for President Rodrigo Duterte’s signing.
Energy officials, meanwhile, said they don’t see any legal impediment once PECO starts operating without franchise.
Last November, DOE said PECO will be given a temporary Certificate of Public Convenience and Necessity (CPCN) to continue operations. Energy officials added there will also still be a transition period of maximum two years for More Power to officially operate as the main service provider.
“PECO will have to continue. Kahit may batas na ang More, meron yang transition period pa na two years, so matagal pa po yan. Ang sinasabi natin, dapat patuloy ang electricity services,” Fuentebella noted.
[Translation: PECO will still have to continue. Even if More’s franchise is officially approved, there is still a transition period of two years, so that will still take time. What we’re saying is that our electricity services should still continue.]
