Senate approves MORE Power expansion bill on second reading

By Francis Allan L. Angelo

The Senate on Monday afternoon approved on second reading the House Bill 10306 that seeks to expand the franchise area of MORE Electric and Power Corp. from Iloilo City to 15 towns and the component city of Passi in Iloilo province.

Second reading in Philippine lawmaking refers to the process where the concerned Senate committee that deliberated on the bill will present its report to the plenary for debate and amendments.

After the debate and amendments, the bill’s approval for Second Reading will be voted on by all legislators of the house. Voting can be done either by viva voce (“aye” and “nay”), count by tellers, division of the house, or nominal voting.

The 2-hour debate focused on the effects of MORE Power’s expansion on the consumers, the Iloilo Electric Cooperatives, and power rates in the province.

Senator Franklin Drilon sought clarification if MORE Power needs to go back to Congress and seek an amendment of its franchise should there be changes in its management and ownership.

But Public Services Committee chairperson Senator Grace Poe, who sponsored the bill and the committee report on the franchise expansion bill, said MORE Power only needs to inform Congress of any ownership changes that only involves minority shareholders who would pass on or sell their stakes in the company.

As long as the principal owner and its corporation are still in control of the distribution utility, there is no need for Congressional approval of the ownership changes.

Senators Ralph Recto and Richard Gordon supported Poe’s stand but they suggested that such condition be included in the franchise bill for the sake of clarity.

Senator Sherwin Gatchalian raised questions on the possible effect of MORE Power’s expansion to Iloilo towns that are within the service areas of Iloilo Electric Cooperatives (Ileco) I, II, and III.

Gatchalian said electricity rates in towns that will not be included in MORE Power’s expanded area might shoot up as the customer bases of the three Ilecos will shrink because of MORE Power’s competitive rates and better services.

But Recto said MORE Power’s purpose is to offer competition which will eventually benefit the consumers.

The expansion bill came to fore after consumers, local officials and even Reps. Braeden John Biron (4th district, Iloilo) and Michael Gorriceta (2nd district, Iloilo) called for MORE Power to expand to their constituencies because of the Ilecos’ purported poor services and expensive rates.

The Ilecos had denied the claims against them.

Recto said the Ilecos have nothing to fear from MORE Power’s expansion because if their services are good as they claim, the consumers will stay with them.

He added that the burden is on MORE Power, particularly in attracting the consumers and recouping their proposed investments amounting to P1.5 billion.

MORE Power faces more risks and it will do everything in its power to lower electricity rates which will benefit the consumers, Recto added.

MORE Power is planning to expand to the towns of Alimodian, Leganes, Leon, New Lucena, Pavia, San Miguel, Santa Barbara, Zarraga, Anilao, Banate, Barotac Nuevo, Dingle, Duenas, Dumangas, San Enrique and the component city of Passi.

Recto said consumers in towns that are not included in the expansion bill should not fret as MORE Power and the Ilecos can even go into a joint venture in the future.

The senators also believe that concerned government agencies such as the Energy Regulatory Commission, National Electrification Administration, Department of Energy and even Congress will exercise their oversight and regulatory powers to protect the consumers.

Drilon and Recto also assured that the assets of the three Ilecos will not be expropriated by MORE Power as the electric cooperatives have valid and active franchises.

Under Republic Act 11212, which granted MORE Power the franchise to operate in Iloilo City, the Razon-led firm was given the power of eminent domain to expropriate or take over the assets of the previous distribution utility (DU) whose franchise already expired.

The Supreme Court has even upheld the said provisions of RA 11212.

The bill awaits the Senate’s final imprimatur on third reading next week. If the Senate finally approves the bill, it might be signed into law by Pres. Rodrigo Duterte before he steps down on June 30, 2022.

MORE Power president and COO Roel Castro said they will not supplant the Ilecos but will only offer an alternative to the consumers who themselves sought for another player in their areas.

Castro said consumers outside Iloilo City saw the good service and appreciated how MORE Power lowered electricity rates in the city.

“We still have a lot to do in Iloilo City, but since it (expansion bill) was approved by the House of Representatives and is already in the Senate, we must face this. These bills came from the clamor of the consumers, and we cannot turn our backs on them. We have an obligation to them and if people are wanting our services, we cannot deny them that as long as it is within our franchise,” Castro said.

“The intention is to put up our facilities, bring in our personnel and services, and offer the best cost to the consumers who will eventually choose,” he added.