City gov’t rips PECO’s biz permit

By Emme Rose Santiagudo

The Iloilo City government has revoked the business permit of Panay Electric Company (PECO) for failing to meet the legal requirements to operate as a distribution utility.

Mayor Jerry Treñas issued executive order (EO) No. 071 on May 8, 2020 directing the Business Permit and Licensing Office (BPLO) to cancel and revoke the business permit issued to PECO.

In his order, Treñas said PECO failed to secure the requirements, specifically a legislative franchise and a Certificate of Public Convenience and Necessity (CPCN) from the Energy Regulatory Commission (ERC).

“Based on the records of the Iloilo City BPLO, PECO does not have a legislative franchise and CPCN issued by ERC to continue to legally operate as a distribution utility.  PECO has failed to submit the legislative franchise and CPCN issued by the ERC after the lapse period given to it,” he said.

The BPLO formally served the order on Monday.

BPLO head Norman Tabud said PECO can no longer operate as a distribution utility following the revocation of its business permit.

The operation of PECO as a distribution utility should ultimately cease, he added.

“As far as the city is concerned, cancelled and revoked na ang business permit sang PECO. It means indi na sila maka-operate as distribution utility. Any operations concerning as a distribution utility dapat untaton na,” he said in a media interview on Monday.

PECO failed to renew its legislative franchise before it expired in January 2019.

In its order dated March 5, 2020, the ERC also revoked the provisional CPCN granted to PECO and granted a provisional authority to MORE Electric and Power Corp. (MORE Power) to operate as distribution utility in Iloilo City,

President Rodrigo Duterte signed Republic Act No. 11212 on Feb 14, 2019 granting MORE Power the franchise to establish, operate, and maintain for commercial purposes, and in the public interest, a distribution system for the conveyance of electric power to the end users in the city and province of Iloilo.