[Vantage Point] Who is responsible for electricity in Passi City?

In Passi City, the issue of who provides electricity has become a pressing concern for local businesses. Enrique Razon’s MORE Electric and Power Corporation (MORE Power) holds a congressional franchise to operate in this area, while the Iloilo II Electric Cooperative Inc. (ILECO II) continues to serve its customers under its own franchise. This overlapping jurisdiction has sparked confusion among residents and business owners.

Unpacking the legislative complexities

The Supreme Court's support of MORE Power's franchise under Republic Act No. 11918 has brought clarity to the legal landscape, but practical challenges remain. The court emphasized that a legislative franchise is not a guaranteed property right, allowing for multiple operators if deemed beneficial for the public.

When it decided to uphold Republic Act No. 11918, the Supreme Court reiterated a longstanding principle of Philippine public utility law: a legislative franchise is a privilege conferred by Congress, not a vested property right.

Supreme Court Decision

However, the real issue lies in infrastructure. While MORE Power has the legal right to operate, the actual deployment of their services can take time. The Electric Power Industry Reform Act of 2001 (EPIRA) mandates utilities to provide service within their franchise areas, yet this is contingent upon having the necessary infrastructure.

• Who is responsible for connecting new customers like Mr. Reyes?
• How will overlapping franchises impact service reliability?
• What obligations do utilities have during infrastructure rollout?

As Passi City businessman Mr. Reyes faces delays in obtaining power for his newly constructed building, the ambiguity surrounding service obligations between MORE Power and ILECO II becomes evident. Should Mr. Reyes choose MORE Power, but they lack the infrastructure, does ILECO II have the obligation to provide service until the new infrastructure is complete?

These questions are particularly relevant as Congress considers further legislation that could expand MORE Power's franchise. Stakeholders must consider not only the promise of modernized service but also the practical realities of infrastructure development and consumer rights.

For the residents and businesses of Passi City, ensuring that utility regulations are robust enough to support competition and universal service is crucial. The situation underscores the need for a regulatory framework that balances competition with the necessity of reliable service delivery.