‘REPUBLIC ACT NO. 11918’: MORE Power expansion bill lapses into law

By Joseph B.A. Marzan

After nail-biting days of anticipating with questions afloat, House Bill (HB) No. 10306 is now Republic Act No. 11918, effectively expanding MORE Electric and Power Company’s (MORE Power) franchise into several towns in Iloilo province.

The expansion law was first reported by Manila Bulletin on Tuesday, August 2, confirming the days-old question of whether the bill had lapsed into law.

HB No. 10306 was submitted to Malacañang on June 29, but former President Rodrigo Duterte left office on June 30 without any action on the bill.

Press Secretary Trixie Cruz-Angeles did not respond to Daily Guardian’s query last Friday as to whether the bill had lapsed, or if President Ferdinand Marcos Jr. vetoed it.

Questions on MORE Power’s expansion bill came to fore because on July 28, it was reported that Marcos Jr. had vetoed a bill expanding the franchise area of another power company, Davao Light and Power Corp, due to potential overlapping with the Northern Davao Electric Cooperative.

RA 11918 amends RA 11212, which granted MORE Power the franchise to distribute power in Iloilo City, by expanding its service areas to the towns of Alimodian, Anilao, Banate, Barotac Nuevo, Dingle, Dueñas, Dumangas, Leganes, Leon, New Lucena, Pavia, San Enrique, San Miguel, Santa Barbara, Zarraga, and the component city of Passi.

These areas are currently being served by the Iloilo Electric Cooperative (ILECO) I, II, and III.

4- TO 5-YEAR EXPANSION

MORE Power President Roel Castro told Aksyon Radyo Iloilo that their expansion plans were already in place even before RA 11918 became a law.

For one, Castro said they already extended their primary lines to the boundary of Iloilo City and Pavia town, which is the likely jump off point for the expansion.

The Megaworld substation, which is currently being installed, in Mandurriao will become the main supply point for Pavia because of its proximity to the town.

“We also bought the needed equipment and assets in anticipation of the expansion. And our realistic plans have already been in place,” he added.

Castro said it would take around 4 to 5 years before they could complete the expansion to all 15 towns.

But before they could start rolling out their lines and equipment to the new franchise area, MORE Power will have to satisfy certain legal and regulatory requisites such as the publication of RA 11918 in two newspapers of general circulation and secure an amended certificate of public conveyance and necessity (CPCN) from the Energy Regulatory Commission (ERC).

MORE Power’s provisional CPCN only limits its service area to Iloilo City, thus it must be amended to cover the additional towns stipulated in RA 11918.

The CPCN is a type of regulatory compliance certification for public service industries. Private firms wishing to provide essential public services must secure a CPCN from the responsible regulatory agency like the ERC before constructing facilities and offering services.

Castro said they are set to go once a provisional authority is granted by the ERC to serve these areas.

While they were able to get hold of the Manila Bulletin report on RA 11918, no official communication has been sent to MORE Power, but Castro said he would wait for the official copies of the law from the Congress and from the Official Gazette.

He sees their initial investments on the expansion between P2 billion and P2.5 billion.

Castro said they are willing to work with ILECO I, II, and III “for the welfare of consumers” in the areas where they will overlap, adding that they would leave it to consumers to choose their preferred distribution utility.

He also bared that some towns in the other districts have been giving them “feelers” expressing interest to have the city’s distributor to expand to their areas.

(This story was updated to reflect the correct date of the submission of HB No. 10306 to Malacañang on June 29, 2022, not July 29)