MORE Power secures ERC nod for Iloilo expansion

By Francis Allan L. Angelo

The Energy Regulatory Commission (ERC) will soon issue a Certificate of Public Convenience and Necessity (CPCN) to Iloilo City’s power distributor, MORE Power, authorizing the utility to expand its services into the second and fourth districts of Iloilo province.

MORE Power President and CEO, Roel Z. Castro, informed Daily Guardian about the regulatory body’s decision in an interview, marking the final administrative step before operations can begin in the new areas.

The ERC’s approval is the culmination of a multi-year process that began with legislation and was solidified by a key Supreme Court decision.

The foundation for this expansion is Republic Act No. 11918, signed into law in July 2022. This law amended MORE Power’s original franchise (RA 11212, which was for Iloilo City only) and expanded its service area to 15 municipalities and one city.

The expansion was immediately challenged by the existing electric cooperatives whose territories were affected. ILECO I, II, and III filed a petition before the Supreme Court, arguing that RA 11918 was unconstitutional. Their primary argument was that the law infringed upon their existing franchises, which they viewed as binding contracts.

However, in a landmark decision in May 2024, the Supreme Court unanimously dismissed the petition and affirmed the constitutionality of RA 11918.

The Court ruled that a legislative franchise is a “privilege” rather than an absolute right or contract. It affirmed Congress’s authority to grant non-exclusive franchises in the public interest, a ruling that effectively removed all legal barriers to MORE Power’s expansion.

PREPARATIONS UNDERWAY

With the legal path cleared, Castro said initial preparations for infrastructure development, including the installation of primary and some secondary lines, were already underway.

He confirmed that the company is prepared to accelerate its expansion efforts upon the official issuance of the CPCN.

Castro also verified that MORE Power has established an office at GT Mall in Pavia and will deploy staff as soon as the CPCN is formally issued.

Addressing concerns regarding the safety of power lines, he assured that the company strictly adheres to the protocols outlined in the Philippine Grid Code and the Philippine Distribution Code.

He also welcomed the possibility of third-party oversight to ensure the enforcement of these safety standards.

According to Castro, several customers are prepared to switch to MORE Power’s service, pending cooperation from the current utilities to manage the disconnection and subsequent reconnection process.