PECO defiant, questions takeover

By Emme Rose Santiagudo

Panay Electric Co. (PECO) was visibly surprised when court sheriffs implemented a court order placing its rival firm MORE Electric and Power Corp (MORE Power) in control of distribution assets in Iloilo City on Feb 28, 2020.

But the 96-year-old firm of the Cacho family said there was no successful takeover that happened Friday, emphasizing that the service of the writ of possession issued by the Iloilo Regional Trial Court Branch 23 was “unprecedented” and “highly irregular.”

“I don’t know what control they have. It’s unprecedented, shocking, highly irregular. The issue of constitutionality is still pending at the Supreme Court and they (MORE) are trying to force their way,” PECO legal counsel Estrella Elamparo said.

Elamparo said MORE Power attempted to enter PECO’s property without securing a break open order from the court.

A break open order must be filed by the prevailing party should the losing party or its representative refuse or prohibit the sheriff of entry to the place where the property subject of execution is located.

“There has to be a break open order from the court. There is no break order in the addendum. It is not true what I have been hearing that they have successfully taken over because if they did, there will be no electricity in Iloilo,” Elamparo said.

MORE Power claimed that it has effectively taken over the General Luna St. Substation including the machinery, land, and buildings used as the meter lab, power plant building, and switchboard house,

President and Chief Operating Officer of MORE Power Roel Castro said they started operating within the day as soon as they took over control of four other substations of PECO in Iloilo City in the districts Molo, Jaro, Lapaz, and Mandurriao.

 

KEPT IN THE DARK

Elamparo added that there was an attempt to keep PECO in the dark as they were not informed of the sheriff’s execution of the WOP.

“We are entitled to know that, there is an effort to keep us in the dark to be able not to take a remedy, we only found that sheriff and MORE Power tried to implement the WOP when they entered the area. This is not just any land or any property they can hand in. This is an entire business operation. This is not a vehicle. There has to be a proper turnover,” she stressed

PECO officials refused to receive the order of execution of WOP including the addendum to WOP enumerating the guidelines of its implementation issued on Friday.

Elamparo said those who entered PECO’s property without the break open order can be held liable by PECO.

As part of its legal remedies, PECO has already filed a motion for clarification with the RTC Branch 23 of Iloilo City on Thursday seeking clarifications for the take-over, assets, and amount of deposit, she furthered.

Elamparo added that they also filed for a petition for certiorari with a prayer of Temporary Restraining Order (TRO) to the Court of Appeals (CA), asking the CA to restrain the implementation of the WOP.

Two additional motions were also filed by PECO on Friday – the motion to suspend proceedings of the expropriation case; and the urgent motion for inhibition of Judge Contreras for partiality in favor of MORE Power.

“Contrary to what’s being circulated via publicity by MORE, it will be highly irregular at this point to insist on the takeover pending resolution of the motion for clarification that PECO has filed with the RTC of Iloilo to define the parameters of the implementation and, more importantly, in view of the Petition for Certiorari with Prayer for TRO that has been filed with the Court of Appeals. MORE cannot jump the gun and pre-empt the ruling on our application for TRO,” according to DivinaLaw, PECO legal counsel, in a statement.

“The premature takeover not only is unjust, irregular and unwise, but it will also plunge the city of Iloilo into darkness,” the statement added.

The law firm said PECO will continue to operate despite the takeover.

“While this legal issue is being resolved, PECO will responsibly continue to provide service to the City. Additionally, PECO will vigorously pursue all legal remedies to set aside the order. We maintain that the order is unjust and impractical particularly given that another court has declared the unconstitutionality of MORE’s franchise and MORE’s appeal to reverse such judgment remains pending with the SC,” the law firm said, adding that while the move is serious, PECO is already used to the tactics of MORE. “This is not the first time they’ve tried to do this,” the statement concluded.

 

UNJUST

PECO Head of Public Engagement and Government Affairs Marcelo Cacho called the takeover as unjust and damaging to Iloilo City.

“Allowing MORE to take over on the basis of a highly questionable expropriation is most unjust. It will also cause irreparable injury and massive damage to the City of Iloilo and its stakeholders, given that the parameters for the implementation of the writ are yet to be clarified by the court,” Cacho added.

Cacho said they will continue to challenge MORE Power’s entry into Iloilo City’s power industry.

“Despite these challenges, we will continue to fight for our rights, for what is right, and for the people of Iloilo,” Cacho declared.