Panay Electric Co. (PECO) filed a petition to Mandaluyong City Regional Trial Court on Wednesday, to halt a power distribution firm owned by ports mogul Enrique Razon from taking over its franchise and operating rights in Iloilo City.
In the 35-page appeal, PECO furthermore asked the court to issue a temporary restraining order and injunction against More Power Iloilo. Additional named plaintiffs were the Energy Regulation Commission and the Department of Energy, and other government agencies.
PECO requested the court to declare provisions of RA 11212 as unconstitutional including one that allowed More to seize Peco’s assets.
Marcelo Cacho, PECO’s administrative manager said they think this provision was “confiscatory” and held a disadvantage to a private company at the expense of another.
President Duterte on Feb. 14 signed the law giving way for More a 25-year power distribution franchise in Iloilo City.
Republic Act No. 11212 that was published on February 19th, gave rise for More to “establish, operate and maintain” an electric power distribution grid in Iloilo City.
Iloilo City has an estimated 55,000 consumers that are included in most residences and office zones.