ON July 30, the Supreme Court rejected a petition by the Iloilo Electric Cooperative Inc. (Ileco) 1, 2 and 3, challenging the validity of Republic Act (RA) 11918, which in mid-2022 expanded the franchise area of MORE Power into the Ileco franchise area. Prior to the amendment by RA 11918, MORE Power primarily served Iloilo City and the immediate surroundings, while Ileco enjoyed a de facto monopoly over electricity distribution in Passi City and most of the other municipalities in Iloilo province.

Although the Supreme Court ruling was completely aligned with the Constitution, it seemed a bit of an activist decision; public utility franchises have almost always been treated as sacrosanct so long as the franchise holder does not completely fail to provide the specified service. In that light, the court's decision is most welcome, because it has a number of promising implications for the energy market in the country as a whole.