By Francis Allan L. Angelo
(This story was updated to correct the date of the signing of Republic Act 11212 on February 14, 2019, not February 14, 2020)
In a tightly contested vote, the Supreme Court on Tuesday ruled in favor of the Enrique Razon-led MORE Electric and Power Corp. against rival Panay Electric Company (PECO) on the matter of the former’s congressional franchise.
SC spokesperson Brian Hosaka told justice beat reporters that the en banc voted 8-6 in favor of MORE Power in the following petitions:
1.) More Electric and Power Corporation vs. Panay Electric Company, Inc. (GR No. 248061) and
2.) Republic of the Philippines, More Electric and Power Corporation vs. Panay Electric Company, Inc. (GR No. 249406).
The two cases pertain to the constitutional issues raised against MORE Power’s congressional franchise via Republic Act 11212.
In granting the petitions, the SC reversed the judgment of the Regional Trial Court Branch 209 of Mandaluyong City in Civil Case No. R-MND-19-00571 and declared Sections 10 and 17 of Republic Act No. 11212 constitutional.
Section 10 authorizes MORE to exercise the power of eminent domain and acquire such private property as is actually necessary for the realization of the purpose for which the franchise is granted.
Section 17 states the power of MORE, as grantee, to effectively acquire power distribution assets. The distribution assets that exist within the franchise area could only refer to those of PECO.
Right after MORE Power’s franchise was signed into law on Feb 14, 2019 (not Feb 14, 2020), PECO questioned RA 11212 before the Mandaluyong RTC.
The case was filed against defendants MORE, Department of Energy, Energy Regulatory Commission and all other agencies tasked to implement RA No. 11212.
In July 2019, Regional Trial Court Branch 209 Judge Monique Quisumbing-Ignacio ruled that PECO has no obligation to sell and MORE has no right to expropriate PECO’s assets under Sections 10 and 17 of RA No. 11212 and PECO’s rights to its properties are protected against arbitrary and confiscatory taking.
“Wherefore, premises considered, judgment is hereby rendered declaring Sections 10 and 17 of RA No. 11212 void and unconstitutional for infringing on PECO’s rights to due process and equal protection of the law,” reads the dispositive portion of Judge Ignacio’s ruling.
“The power of eminent domain had never been intended to be used as a tool to take private property already being devoted to public use for the same public purpose,” the ruling added.
But MORE Power was able to secure a temporary restraining order (TRO) from the SC in December 2019, which paved the way for the Iloilo Regional Trial Court Branch 23 to greenlight the takeover of PECO’s assets on Feb 28, 2020.
In March 2020, the Energy Regulatory Commission granted a provisional authority to MORE Power effectively revoking the certificate of public convenience and necessity (CPCN) given to PECO. Two months later, the Iloilo City government revoked PECO’s business permit for lack of franchise and CPCN.
VINDICATED
In a statement, Power president and CEO Roel Castro said the SC’s reversal of the Mandaluyong court’s ruling cements MORE’s takeover of PECO’s assets.
Castro also said that they were vindicated by the SC ruling.
“This victory has definitely made every step of the year-long legal wrangle very much worth it despite PECO’s delaying tactics and fake news propaganda against us. The ruling, more than anything else, is a clear message by the High Tribunal that nothing is over and above the welfare of the general public. This is definitely a major win for all of us, most especially for Iloilo power consumers who spent years, decades even, putting up with all the unbridled violations and inequities of the former utility distributor,” Castro said.
Castro added that the SC decision is a validation of the truth especially after the irresponsible and fraudulent spins waged by PECO.
“Despite the impediments, we remained committed, focused, and optimistic that the honorable justices of the Supreme Court would eventually make the right decision for the benefit of the Ilonggo consumers, who have suffered long enough from the ineptness of the former distribution firm,” he said.
“We applaud the Supreme Court for making this decision and by standing alongside the advocacy of the people to finally oust a monopoly that has trampled on the rights of the Ilonggos for so long. Rest assured that MORE Power will continue working to improve and modernize the distribution system as we carry forward the tradition of noble public service Ilonggos have every right to demand for and which they fully deserve.”
TEMPORARY SET BACK
In a statement, PECO legal counsel Estrella Elamparo said they are “saddened” by the Supreme Court decision upholding two provisions of MORE Power’s franchise.
“It was a close vote on a novel issue that had never been raised before our Highest Court, but will certainly have reverberating consequences that open the power of expropriation to abuse. The tight vote lends support to our position that the takeover of PECO’s properties is not the exercise of eminent domain contemplated by our laws, but a violation of constitutional rights,” she said.
“Although this is a massive hurdle, we will not give up on our fight and we will continue to pursue the available legal remedies to defend PECO’s constitutional rights. Despite this temporary setback, we remain optimistic that we will ultimately be vindicated not just for PECO but for the people of Iloilo,” Elamparo
