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DOE ENSURES CONTINUED POWER SERVICES IN ILOILO DESPITE FRANCHISE ISSUES



TAGUIG CITY — The Department of Energy (DOE) together with members of the energy family met with the representatives of the Panay Electric Company (PECO) and its suppliers, Panay Power Corporation, Panay Energy Development Corporation and Palm Concepcion Power Corporation, yesterday (17 January) to ensure the continuous delivery of electricity services in Iloilo. The meeting was called to coordinate the actions of all the concerned power industry players pending the resolution of the issue on the franchise to operate the distribution system.
 
"We are assuring our kababayans in Iloilo City, La Paz, Jaro, and Arevalo that there will be no power disruptions due to the franchise issues that are to be resolved. In the interim, PECO will remain as the power service provider in the area," DOE Secretary Alfonso G. Cusi emphasized. 
 
During the said meeting, PECO agreed to continue its operations even after the expiration of its franchise on 19 January 2019. Furthermore, PECO yesterday stated that it would honor its obligations relative to its Power Supply Agreements, Transmission Supply Agreements and its responsibilities with the Wholesale Electricity Spot Market and other service providers while it continues to operate the distribution system in its service areas. 
 
The DOE, in an earlier discussion with PECO, noted that the private distribution utility may continue its services since the Certificate of Public Convenience and Necessity issued by the then Energy Regulatory Board is set to expire on 25 May 2019.
 
“Public interest is the primordial concern. Given the crucial role of regional economies in the overall progress of the country, uninterrupted energy services in Iloilo is of utmost importance. This is based on the provisions of the Public Service Law and the Electric Power Industry Reform Act of 2001. The consumers should likewise continue to recognize PECO as the power distribution service provider and acknowledge their obligations,” Sec. Cusi asserted. 
 
Also present in yesterday's meeting were officials from the National Grid Corporation of the Philippines, Philippine Electricity Market Corporation, and the Independent Electricity Market Operator of the Philippines. The DOE is scheduled to call for another meeting next week to discuss developments on the matter. 
 
"We are in close coordination with all concerned stakeholders, including the Energy Regulatory Commission, to ensure that Iloilo will not be left in the dark. The entire energy family remains committed in seeking solutions that would make energy services more reliable and sustainable throughout the country," Sec. Cusi concluded. 
 
Photo from Philstar
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