The response of the Iloilo City Government on the May 2 blackout sent a clear message: it does not have a concrete plan on how to deal with the power situation. So, the proposed steps in dealing with Panay Electric Co. (PECO) were mere impulse and lacked sense.

If we scrutinize the Local Chief Executive's proposed intervention, you'll see that there is nothing substantial to it. It was just a populist response in order to please the business sector that complained of millions of losses due to the blackout.

The clamor from the local government's end are: first, review the 25-year franchise issued by Congress to PECO; second, open the city to another interested power service provider; and third, demand PECO's explanation for the blackout.

Let's first tackle the power franchise review. Congress granted PECO a 25-year exclusive franchise to distribute electricity in Iloilo City. The franchise was not a new issuance but a renewed authority to distribute electricity because PECO has been operating in Iloilo City since 1923. In 1994, PECO secured a renewed franchise from Congress and this will end in 2019.

However, before the franchise renewal, the local government did not show any interest in evaluating the city's power situation and assessing PECO's capability to service Iloilo City in 25 years. It also failed to see PECO's plans for the future in terms of investments on infrastructure and facility and equipment upgrade. The LGU should have considered this before supporting the re-issuance of a franchise.

After the franchise renewal, new developments in the power industry benefited PECO. In 2001, the dreaded Electric Power Industry Reform Act (EPIRA) was passed into law. This further solidified PECO's monopoly in electricity distribution. EPIRA mandated the privatization of the country's power industry and segregated it into three main sectors - generation, transmission and distribution.

Now, PECO's monopoly became legitimate with the renewed franchise and this is even given a boost by EPIRA because it has the mandate to occupy the distribution sector of the power industry. We can only imagine how much in terms of financial demand the renewed franchise has cost PECO. Insiders in Congress shared that distribution companies spend a lot to secure political support and eventually, a franchise.

PECO feels such legitimacy is necessary. That's why we hear Engr. Randy Pastolero, PECO's vice-president for operations, repeatedly emphasizing that PECO has the "natural monopoly" over the distribution service because it has exclusive franchise and it has the mandate of EPIRA.

Of course, Pastolero is tip-toeing against the impulsive response and populist move of Mayor Jed Patrick Mabilog asking Congress to review PECO's franchise. Pastolero's message is clear: it is unimaginable for another power distribution utility to come in and enter the distribution of electricity business in Iloilo City.

Then, we have not heard Rep. Jerry Treñas and Senator Frank Drilon express their legal analysis on the violations committed during power interruptions, on the content of PECO's franchise and how the franchise review will impact the continue electricity delivery. Moreover, PECO has a copy of the franchise. While it was Congress that issued such, the act of reviewing the franchise does not rest exclusively on Congress. Mayor Mabilog can review it by getting a copy from Engr. Pastolero. That would give him the chance to acquire first-hand information, to let his legal team analyze it, so that he can pursue whatever intervention he has in mind. Why wait for Congress when the local government can already assert its power over entities that are within its boundaries?

The local government has police powers to arrest situations like the breakdown of power service like what happened last May 2. And that blackout was not an isolated event. They occur almost every day but in different parts of the city in the last two years. PECO's monthly power interruption report submitted to the Energy Regulatory Commission (ERC) proves this. Mayor Mabilog can request a copy from the ERC if he really is serious in dealing with the situation.

The City Council can also make its own review. It can let its Committee on Public Utilities work with the City Legal Office or create a multi-sectoral body that will assess the situation and create steps on how to deal with PECO's abuses against consumers and the local government of Iloilo City. (To be continued)