Supreme Court Rules in Favor of MORE Power’s Expansion into ILECO’s Service Areas

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.

The 14 justices of the Supreme Court, in a 20-page En Banc decision signed last July 30, 2024, and released this January 2025, dismissed the Petition of ILECO’s for Certiorari and Prohibition with Prayer for the Issuance of Temporary Restraining Order and Writ of Preliminary Injunction, which challenged the constitutionality of MORE Power’s expansion franchise.

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Congress granted MORE Power a franchise through Republic Act 11918 to provide electricity services in municipalities within the second and fourth districts of Iloilo, following requests from residents to their respective Congressmen. The ILECOs currently serve these areas.

The Supreme Court clarified that there is no exclusivity in the franchise granted to electric cooperatives, emphasizing that this principle is clearly stated in the 1935, 1973, and 1987 Constitutions: “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 ruled that this constitutional provision is explicit, requires no further interpretation, and should be enforced.

The Supreme Court also emphasized that Congress thoroughly deliberated on MORE Power’s expansion franchise to ensure it would benefit consumers.

The decision clarifies that MORE Power’s franchise does not mandate consumer transfer to their service but instead creates a competitive environment where consumers have the choice to remain with ILECO or switch to MORE Power.

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The Supreme Court concluded, “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.”