Panay Electric Co. (PECO) may lose its certificate of public convenience and necessity (CPCN) from the Energy Regulatory Commission if it fails to settle the P90 million unpaid real estate taxes with the city government of Iloilo.
Norman Tabud, head of Iloilo’s business permits and licensing office said PECO failed to secure a business license to operate in 2019 for not settling the amount and the additional penalties since March .
At present, PECO is operating under a two-year temporary CPCN while the new distribution utility, More Electric and Power Corp. is yet to fully takeover the electricity distribution in the province.
Tabud said PECO’s real estate tax obligations resulted from a new ruling from the city treasurer that the lot where PECO’s electricity poles are located are also taxable real estate.
He said PECO offered part of the real estate where the poles stand as payment which the City Treasurer’s Office rejected.