ILOILO CITY - The Business Permits and Licensing office of the city government has served Executive Order 71 to Panay Electric Company (PECO), Monday morning, mandating the cancellation and revocation of its business permit.
"Ang basis sang revocation, it's because they failed to present sang ila legislative franchise and Certificate of Public Convenience and Necessity (CPCN)", Norman Tabud, head of BPLO, said in a phone interview with ABS-CBN News.
Under the law, a distribution utility needs a legislative franchise and CPCN issued by Energy Regulatory Commission to operate.
The executive order, signed by Mayor Jerry Treñas, was received by PECO.
Last year, PECO failed to get the legislative franchise from Congress for the power distribution in Iloilo City.
The franchise was awarded to a new power distributor - MORE Electric and Power Corporation. The legal battle between the two companies continues.
ABS-CBN News reached out to PECO but its legal counsel declined to give a statement as they are still discussing the matter.