The Supreme Court has dismissed a petition filed by the Iloilo Electric Cooperatives (ILECOs) seeking to block MORE Power’s expansion into certain municipalities within their franchise area. This landmark decision reinforces the principle of competition in public utility services and grants consumers more options in Iloilo.
In a 20-page En Banc decision signed on July 30, 2024, and released in January 2025, the Supreme Court’s 14 justices unanimously dismissed the Petition for Certiorari and Prohibition with Prayer for the Issuance of Temporary Restraining Order and Writ of Preliminary Injunction filed by ILECOs. The petition had challenged the constitutionality of Republic Act 11918, which granted MORE Power the franchise to operate in municipalities within the second and fourth districts of Iloilo.
No Exclusivity in Franchises
The Supreme Court emphasized that there is no exclusivity in the franchise granted to electric cooperatives. This principle is firmly rooted in the 1935, 1973, and 1987 Constitutions, which state:
“No franchise, certificate or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or corporations or associations organized under the laws of the Philippines, at least sixty per centum of whose capital is owned by such citizens, nor shall such franchise, certificate or authorization be exclusive in character or for a longer period than fifty years.”
The justices underscored that this constitutional provision is explicit, requires no further interpretation, and must be upheld to promote the common good.
A Thoroughly Deliberated Franchise
Congress granted MORE Power its expansion franchise under Republic Act 11918 after thorough deliberations and appeals from residents in the affected areas. These residents requested their representatives to address their concerns about electricity services and introduce competition within the region. The municipalities affected are currently served by ILECOs, but the franchise’s enactment creates an environment where consumers have the freedom to choose their service provider.
The Supreme Court clarified that the franchise does not compel consumers to switch to MORE Power. Instead, it fosters a competitive environment, allowing residents to decide whether to remain with ILECO or transfer to MORE Power’s services.
Promoting the Common Good
The Court concluded that the enactment of Republic Act 11918 aligns with the promotion of the common good, as it encourages healthy competition in the electric service sector. This competition aims to improve service quality and efficiency for the residents of Iloilo.
“The enactment of Republic Act No. 11918 is founded on the promotion of the common good, that is, to promote a healthy competitive environment in the Province of Iloilo,” the decision stated.
With this ruling, MORE Power’s expansion into the second and fourth districts of Iloilo stands on solid legal ground, promising better services and options for consumers. This decision also reaffirms the government’s commitment to ensuring that public utilities operate in a manner that prioritizes the interests of the public.