03/08/2024
BREAKING: Supreme Court upholds the franchise expansion of MORE Electric and Power Corp. in Iloilo Province as it declares that electric cooperatives do not have a constitutional right to an exclusive franchise within their coverage areas.
In a decision released on Thursday, the Supreme Court En Banc dismissed the petition of Iloilo Electric Cooperative, Inc. I, II, and III (ILECOs) challenging the validity of Republic Act No. (RA) 11918. The law expanded the franchise of another electricity provider, MORE Electric and Power Corporation (MORE), to areas within ILECOs’ franchise.
In dismissing the petition, the Court ruled that Section 11, Article XII of the Constitution prohibits exclusive franchises.
“A franchise, as a privilege granted by the state, is not the exclusive private property of the franchisee. Thus, it must yield to serve the common good, as determined by Congress,” the high court said.
“Without competition, ILECOs can easily dictate the price of electricity. Allowing the entry of another player thus benefits consumers, who no longer have to wait until ILECOs’ franchises expire in 2029, 2039, and 2053. This is in accordance with the Electric Power Industry Reform Act (EPIRA), which encourages competition in the electricity industry,” the Supreme Court added.
