House committee okays MORE Power expansion bill

By Joseph B.A. Marzan and Francis Allan L. Angelo

The bill seeking to expand the franchise coverage of MORE Electric and Power Corporation (MORE Power) breezed through the Committee on Legislative Franchises at the House of Representatives on Tuesday, according to one of its authors.

House Bill No. 10271 seeks to expand MORE Power’s franchise area to include other municipalities in Iloilo province, particularly those in the 2nd and 4th congressional districts.

The company’s existing franchise, Republic Act No. 11212 that was approved in 2019, limits its coverage area to Iloilo City.

The 2nd district is composed of the towns Alimodian, Leganes, Leon, New Lucena, Pavia, San Miguel, Santa Barbara, Zarraga, and the 4th district includes Anilao, Banate, Barotac Nuevo, Dingle, Dueñas, Dumangas, and San Enrique towns, as well as Passi City.

These towns and Passi City are served by Iloilo Electric Cooperatives (ILECO) I and II.

ILECO I serves Alimodian, San Miguel Leganes, Leon, Pavia, and Sta. Barbara, while ILECO II serves Barotac Nuevo, Dingle, Dueñas, Dumangas, New Lucena, Passi City, San Enrique, and Zarraga, and ILECO III serves Anilao and Banate.

Representatives from MORE Power and ILECO I and II, as well as from the Department of Energy (DOE), Energy Regulatory Commission (ERC), and the National Electrification Administration (NEA), were present during the committee hearing.

Also present were Partylist Representatives Sergio Dagooc (Association of Philippine Electric Cooperatives) and Godofredo Guya (Rural Electric Consumers and Beneficiaries of Development And Advancement, Inc.).

The bill’s principal authors, Reps. Michael Gorriceta (Iloilo-2nd) and Braeden John Biron (Iloilo-4th) provided their sponsorship speeches where they laid down their stand in filing the said bill.

Rep. Biron said he is not siding with MORE Power over ILECO I and II but by allowing MORE to expand its services to his district, it will fulfill the goal of equitable distribution of affordable power and good service.

Biron noted that “healthy competition always gives consumers the power of choice” and “brings down the cost of power and improves services.”

Gorriceta told Aksyon Radyo Iloilo on Tuesday that the House Committee on Legislative Franchises “understood” the public clamor that led to the filing of HB No. 10271.

He added that there was only one amendment suggested by the ERC during the hearing, pertaining to MORE Power’s 25-year franchise period, which also started in 2019.

“They understood [Biron and I] that there was public clamor on the electricity rates and the services, but it should be studied well. That is why the DOE recommended to form a consultation panel. They, together with the ERC, NEA, and the two electric cooperatives, should work from there,” Gorriceta said.

The lawmaker also said that the DOE will form a consultative panel together with ERC, NEA and Iloilo electric cooperatives.

The panel would deal with the ERC’s suggested amendment, as well as study the possible impact of the bill’s enactment on the ILECOs.

ILECO I told the panel that it was bound by its existing contracts so it would expect to operate even after the bill would become law.

“Maybe they already have guidelines or templates on what would they do in the consultation panels. It would be among themselves, the ERC, NEA, DOE, and the electric cooperatives,” Gorriceta said.

 

CLAMOR

MORE Power President and COO Roel Z. Castro said they will set up facilities in the areas covered by the amended franchise law if approved.

Castro also told the committee that the clamor of other towns for MORE Power to expand its services to their areas is due to lower rates, good customer services, and lower frequency of power supply interruptions enjoyed by Iloilo City consumers.

But Castro clarified that they have no intention of reducing the service areas of ILECO I and II.

“MORE Power will put up its own facilities and deploy its resources to serve the second and fourth districts of Iloilo. MORE Power, however, will be open to any possible collaboration that would redound to the benefit of the consumers,” he added.

If the bill becomes law, how will MORE Power fund its expansion?

Castro said the company can raise funds both by stockholders’ equity and/or borrowings.

He also cited that its congressional franchise (RA 11212) allows a portion of the equity to be made available to the public, meaning the public can invest or buy stocks from MORE Power.

“With the legal, technical, and financial qualifications of MORE Power, it would be ready to expand its franchise to the second and fourth districts should the Congress of the Republic of the Philippines approve its application,” he added

 

WHAT’S NEXT?

Gorriceta said that the next step of the bill was to submit the committee report to the House plenary, where the bill would undergo second reading, allowing for a period of debates on the related issues and concerns.

The second reading is expected to be after November 8, when the House resumes session from its month-long recess.

The lawmaker also reiterated in his interview that should the bill remain in plenary at the end of the 18th Congress, he and Biron will re-file the measure in the 19th Congress in July 2022.