Market Trends

Joint Venture, Not Competition: Consumer Group Lays Out Proposal For ILECO 1 And MORE Power

https://www.dailyguardian.com.ph/blog/group-pushes-ileco-1-more-power-joint-venture?fbclid=IwZnRzaATDA_NwZG9mA2ZkaWQWUKjZSVJfenIY7slvmHB5O_7VHd2EjWV4dG4DYWVtAjExAHNydGMGYXBwX2lkCjY2Mjg1NjgzNzkAAR48ZjqD25BVDL3yTZEwD0el9w-eK-p7YxGTyMRVIF3x9nKqDWOqaB6HWJuGYg_aem_caPM_nQDi66sbhYP8ROj_Q https://www.pna.gov.ph/articles/1265138 https://mb.com.ph/2023/12/15/more-power-enhances-service-via-ceneco-joint-venture

A regional consumer organization is urging Iloilo 1 Electric Cooperative (ILECO 1) to consider a joint venture with MORE Electric and Power Corp. (MORE Power), arguing that a partnership would better serve consumers than direct competition if a proposed franchise expansion into Iloilo’s 1st District becomes law.

Bantay ng Bayan-101 (BNB-101), also known as the Movement of Iloilo Consumers for Better Electric Service, said the proposal reflects the sentiments of residents across the seven municipalities in Iloilo’s 1st District—Guimbal, Igbaras, Tubungan, Oton, Tigbauan, Miag-ao and San Joaquin.

Consumer-Backed Proposal

The appeal comes as House Bill 7647, filed by Iloilo 1st District Rep. Janette Garin, awaits further action in Congress. The measure seeks to expand MORE Power’s franchise beyond Iloilo City to include the district currently served by ILECO 1.

BNB-101 said the bill has already cleared the House of Representatives and cited the Supreme Court’s June 13, 2025 decision affirming the legality of MORE Power’s franchise expansion beyond Iloilo City as a development that could strengthen the measure’s prospects in the Senate.

Speaking during an Aksyon Radyo-Iloilo program on July 5, BNB-101 regional director Raul Cordova said the group has shifted from advocating competition between the two distribution utilities to promoting collaboration.

“We used to look forward to competition between the cooperative and the private power distributor. Competition would grant energy consumers the freedom of choice. But now we are suggesting a better alternative,” Cordova said.

BNB-101 spokesperson Warren Briones, who also serves as barangay chairman of Barangay Buyuan in Tigbauan, said consultations with cooperative member-consumers indicated that many were prepared to transfer to MORE Power in search of improved service.

He warned that competing distribution systems could result in unnecessary infrastructure investments before both parties eventually consider a partnership.

Negros Model

Cordova pointed to the 2024 joint venture between MORE Power and the then financially troubled Central Negros Electric Cooperative (CENECO) as a model that ILECO 1 could adopt.

The partnership led to the creation of Negros Electric and Power Corp. (Negros Power), whose customer base, according to BNB-101, expanded from 177,737 in August 2024 to nearly 300,000. The group also said employees who opted for retirement received compensation while many others were retained under the new utility.

BNB-101 argued that a similar arrangement would allow ILECO 1 to address concerns over its long-term viability while enabling MORE Power to expand without incurring the cost and time required to build a separate network of distribution lines.

The organization said it has already submitted resolutions supporting the proposed joint venture to local government units after various farmers’, fisherfolk’s, senior citizens’, persons with disabilities, and other sectoral organizations approved the measure between May 2 and May 25, 2026. Several LGUs, particularly in the 1st District and in Pavia, have also adopted resolutions backing the proposal.

Expansion Debate

The proposed partnership follows years of discussions over MORE Power’s expansion into Iloilo province.

When Garin first pushed legislation to extend MORE Power’s franchise, she argued that introducing another distribution utility would encourage competition and help reduce electricity rates in the district. She had also challenged ILECO 1’s management to lower power rates, saying she would withdraw the bill if consumers received more competitive pricing.

Garin earlier warned that ILECO 1 could face financial pressure if customers from both the 1st and 2nd districts begin transferring to MORE Power. The Energy Regulatory Commission has already granted MORE Power a Certificate of Public Convenience and Necessity covering its expansion into Iloilo’s 2nd and 4th districts.

BNB-101 believes that, instead of engaging in a prolonged battle for customers, ILECO 1 and MORE Power should pursue a partnership that would preserve existing assets, improve service delivery, and provide a smoother transition for consumers across the province.

Source:

https://www.dailyguardian.com.ph/blog/group-pushes-ileco-1-more-power-joint-venture?fbclid=IwZnRzaATDA_NwZG9mA2ZkaWQWUKjZSVJfenIY7slvmHB5O_7VHd2EjWV4dG4DYWVtAjExAHNydGMGYXBwX2lkCjY2Mjg1NjgzNzkAAR48ZjqD25BVDL3yTZEwD0el9w-eK-p7YxGTyMRVIF3x9nKqDWOqaB6HWJuGYg_aem_caPM_nQDi66sbhYP8ROj_Q

https://www.pna.gov.ph/articles/1265138

https://mb.com.ph/2023/12/15/more-power-enhances-service-via-ceneco-joint-venture