MORE Power-ILECO I: JVA unlikely to lower rates

By Rjay Zuriaga Castor

A joint venture agreement (JVA) between MORE Electric and Power Corp. (MORE Power) and Iloilo I Electric Cooperative Inc. (ILECO I) is not feasible amid the proposed expansion of MORE Power’s franchise in Iloilo’s 1st District, according to Rep. Janette Garin.

Garin said a JVA would defeat the purpose of encouraging more players in the power sector, which is to reduce electricity costs.

“Let’s call a spade a spade. The way ILECO is being run is not the usual way of running a business,” she said during a press conference on Friday, Dec. 12.

She added that a JVA would remain unworkable if ILECO I General Manager Engr. Miguel A. Paguntalan Jr. and Board of Directors President Grace Laarni Custodio insist on maintaining what she described as excessive salaries, benefits, perks, savings, and investments.

While a JVA could theoretically create a “win-win” scenario, Garin said partnering with a non-stock, non-profit cooperative that reportedly earns around PHP 80 million annually would place MORE Power at a disadvantage.

She claimed that Paguntalan has demonstrated a “closed mind” toward MORE Power’s potential entry into ILECO I’s franchise area based on their previous meetings.

“Maybe sometimes if you are used to those benefits, when there are changes, there’s always resistance to change,” she said.

Garin also questioned the transparency of ILECO I’s leadership, saying it lacks openness with consumers, employees, and even other cooperative officials.

“The big problem is there seem to be two or three people whose intentions are not really for the benefit of the people of the 1st District of Iloilo,” she said. “What we keep hearing in meetings is that they are fighting for self-preservation.”

She clarified that high electricity prices in ILECO I’s coverage area may not stem from corruption but from the cooperative’s management style.

If MORE Power’s franchise expansion is approved and competition increases, Garin said ILECO I could sell its electric posts to the private utility to help sustain its operations in the 2nd District.

MORE Power is currently expanding its operations in the 2nd District, which includes the towns of Alimodian, Leganes, Leon, Pavia, San Miguel, and Santa Barbara—all areas also served by ILECO I.

Garin said that, based on House Committee on Franchises hearings, there has been “no resistance” from fellow lawmakers to her franchise expansion bill.

She added that the expansion is likely to proceed, noting the Supreme Court has already upheld the constitutionality of MORE Power’s franchise expansion from Iloilo City to towns in the 2nd and 4th congressional districts.