Think tank backs MORE Power franchise expansion bill

By Francis Allan L. Angelo

An Iloilo City-based policy research institute has expressed strong support for House Bill No. 7647, which proposes to expand the franchise area of MORE Electric and Power Corporation beyond Iloilo City to include several municipalities in the Province of Iloilo currently served by Iloilo Electric Cooperative (ILECO)-I.

The Institute of Contemporary Economics (ICE), an independent, non-stock, non-profit policy research and advocacy think tank based at the Graduate and Continuing Education Building of the University of the Philippines Visayas, submitted a position paper to the Senate Committee on Public Services on March 6, 2026, in response to the committee’s request for stakeholder inputs on the proposed legislation.

The position paper, authored by ICE Executive Director Joseph Ledesma Ladrido, draws upon observations from the experience of electricity distribution reform in Iloilo City following the transition of operations in 2020 to argue that extending a modernized distribution framework to surrounding municipalities would strengthen regional infrastructure and support broader economic development across the Iloilo region.

House Bill No. 7647, formally titled An Act Further Amending Sections 1, 16, and 21 of Republic Act No. 11212, as Amended by Republic Act No. 11918, Granting MORE Electric and Power Corporation an Expanded Distribution Franchise, proposes to extend the company’s existing distribution franchise to several municipalities within the Province of Iloilo.

The position paper cited measurable improvements in Iloilo City’s electricity distribution system since the 2020 transition.

Distribution system losses dropped from approximately 30 percent or more to approximately 6 to 7 percent, reflecting significant improvement in network efficiency and a reduction in both technical and non-technical losses.

Infrastructure investment shifted from limited large-scale network rehabilitation to a multi-billion peso rehabilitation and modernization program, enabling accelerated modernization of substations, feeders, and distribution lines.

Grid infrastructure underwent systematic replacement and upgrading of distribution assets, replacing what was previously an aging network with deferred maintenance.

Outage response and system reliability also improved, moving from frequent outages and slower restoration times to improved outage management and faster restoration capability.

ICE’s position paper attributed these gains to the distribution utility’s ability to mobilize substantial capital investment through access to private financing, enabling the rapid implementation of infrastructure improvements that might otherwise have taken significantly longer under more constrained institutional arrangements.

The transition of electricity distribution in Iloilo City in 2020 involved the replacement of a long-standing electric cooperative distribution model with a privately managed distribution utility operating under a congressional franchise. The position paper described it as one of the most significant institutional reforms in urban electricity distribution in the Philippines in recent years.

ICE noted that while electric cooperatives were originally established to bring electricity to rural areas and have contributed significantly to expanding electricity access throughout the country, they often face structural constraints in mobilizing capital for large-scale infrastructure modernization and network rehabilitation.

Private distribution utilities, by contrast, can access private capital markets, corporate financing structures, and professionalized management systems.

The municipalities proposed for inclusion in the expanded franchise area are closely interconnected with Iloilo City through economic activity, commuting patterns, agricultural supply chains, tourism activity, logistics networks, and expanding urban development, according to the position paper.

Extending a modernized electricity distribution framework to these municipalities may generate several benefits, the paper argued, including improved reliability of electricity supply for households and businesses, increased infrastructure investment in distribution networks, support for agricultural processing, tourism development, and logistics operations, and strengthening of regional economic competitiveness.

The position paper also noted that integrated regional planning of distribution infrastructure can improve the efficiency of the electricity network by allowing coordinated placement of substations, feeder systems, and load-balancing mechanisms across multiple municipalities.

From the perspective of consumers, the paper stated, the transition to MORE Electric and Power Corporation has been transformative.

Prior to the transition, electricity reliability in Iloilo City was a persistent concern, with power interruptions, aging infrastructure, and uncertainty regarding service reliability creating recurring challenges for households and businesses.

Strengthening electricity infrastructure across the broader Iloilo region will enhance the competitiveness of the regional economy and support the continued growth of Iloilo City as a major economic center in Western Visayas, the position paper concluded, recommending that House Bill No. 7647 merits the full and favorable consideration of the Senate Committee on Public Services.

MORE Electric and Power Corporation assumed power distribution operations in Iloilo City in 2020 under Republic Act No. 11212, which was later amended by Republic Act No. 11918.

The company has since undertaken extensive network rehabilitation and modernization, including replacement of aging distribution lines and upgrading of substations, supported by modern monitoring systems and faster outage response.

ICE focuses on regional economic development, infrastructure and urban systems, energy and utilities policy, labor and wage economics, and public sector governance.