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The Panay Electric Company, also known as Panay Electric or PECO, is an electric power distribution company in the Philippines. It was founded in 1921 by Philippine Revolution general and senator Esteban de la Rama, who was granted a franchise to operate an electric power system in Iloilo. In 1927, Candelaria Soriano Cacho acquired the company, making it the first 100% Filipino-owned private company in the Philippines. In 1996, the influential Lopez family of Iloilo acquired 30% of PECO's capital stock, leaving 70% for the Cacho family. In 2019, PECO's franchise expired, and its operations in Iloilo City were taken over by the MORE Electric and Power Corporation (MORE Power), owned by billionaire Enrique Razon.
| Characteristics | Values |
|---|---|
| Company Name | Panay Electric Company, Inc. |
| Other Names | Panay Electric, PECO |
| Industry | Utilities |
| Headquarters | Iloilo City Proper, Iloilo City, Philippines |
| Area Served | Iloilo City |
| Years Active | 1923–2019 |
| Owners | Cacho Family (70%) |
| First Philippine Holdings Corporation (30%) | |
| (owned by the López family) | |
| CEO and President | Luis Miguel A. Cacho |
| Chairman of the Board | Mariano Cacho Jr. |
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What You'll Learn
The company was founded by Esteban de la Rama in 1921
The Panay Electric Company, also known as Panay Electric or PECO, was founded by Philippine Revolution general and senator Esteban de la Rama in 1921. On February 22, 1921, de la Rama was granted a franchise "to install, operate, and maintain an electric light, heat, and power system in the municipalities of Iloilo, La Paz, Jaro, and Arevalo" by virtue of Act 2983. He then established the Panay Electric Company on May 14, 1921.
PECO began serving Iloilo City as its electric power distributor in 1923. The company was first set up to contribute to the socio-economic progress and stability of the community by providing excellent, reliable, and safe service to the public at the lowest possible cost.
In April 1922, PECO became the majority owner of the Iloilo Light Company, which had been founded in 1902 during the American Colonial Period by American mining engineer Joseph Clayton Nichols. PECO purchased three-fourths of the firm, thereby taking over the operation of the power distribution system. In February 1923, the company took full control of the Iloilo Light Company after the Philippine Legislature passed Act No. 3035, authorising de la Rama to transfer his franchise to the company.
In 1927, investors owning more than 99% of the capital stock sold their shares to Candelaria Ditching Cacho, making the company the first 100-percent Filipino-owned private company in the Philippines. The Cacho family continued to own PECO until 2019, when its Iloilo City franchise expired and was not renewed by Congress.
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It was the first 100% Filipino-owned private company in the Philippines
The Panay Electric Company, also known as Panay Electric or PECO, is an electric power distribution company in the Philippines. It was the first 100% Filipino-owned private company in the country, a milestone achieved in 1927 when Candelaria Soriano Cacho acquired full ownership.
PECO was founded on May 14, 1921, by Philippine Revolution general and senator Esteban de la Rama, who was granted a franchise to "install, operate, and maintain an electric light, heat, and power system" in several municipalities in Iloilo. In 1923, PECO began serving as Iloilo City's electric power distributor, taking over from the Iloilo Light Company, which had introduced electricity to the province in 1902.
Over the years, PECO faced various challenges, including technical and financial problems during the martial law era in the 1970s, which resulted in the company losing several service areas. In 1996, First Philippine Holdings Corporation, owned by the influential López family, acquired 30% of PECO's capital stock, with the remaining 70% held by the Cacho family.
Despite these changes in ownership, PECO continued to provide electric power distribution to Iloilo City until its franchise expired in 2019. After its franchise expired, PECO's operations in Iloilo City were taken over by the MORE Electric and Power Corporation (MORE Power), ending a 97-year-long era of PECO's service to the city.
Even though it is no longer the main power distributor for Iloilo City, PECO continues to offer various services related to electricity distribution, such as meter management, electrical infrastructure maintenance, and safety-related services, showcasing its enduring presence in the industry.
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In 1996, the Lopez family acquired 30% of the capital stock
The Panay Electric Company, also known as Panay Electric or PECO, is an electric power distribution company that served Iloilo City in the Philippines from 1923 until 2019. In 1996, the Lopez family, an influential family from Iloilo, acquired 30% of the capital stock of PECO. This acquisition gave the Lopez family a significant stake in the company and influenced the direction of the electric power distributor.
The Lopez family's acquisition of PECO's capital stock was not an isolated event in the company's history. In 1927, Candelaria Soriano Cacho acquired the entire company, making it the first 100% Filipino-owned private company in the Philippines. This early history of PECO set a precedent for Filipino ownership and control of the country's electric power industry.
Over the years, PECO faced several challenges, including technical and financial problems during the martial law era in the 1970s, which resulted in the company losing its service areas to the electric cooperative ILECO 1. Despite these setbacks, PECO continued to serve Iloilo City, and in 1996, the Lopez family's acquisition of a significant stake in the company brought new opportunities and resources.
The Lopez family's involvement in PECO through their holding company, First Philippine Holdings Corporation, brought not only financial resources but also expertise and connections in the power industry. This injection of capital and knowledge may have helped PECO navigate the changing landscape of the electric power distribution industry in the Philippines. It is important to note that the Cacho family retained 70% ownership of PECO, maintaining their position as the majority shareholders.
The acquisition by the Lopez family marked a turning point for PECO, as it led to a shift in the company's focus and operations. In 1994, PECO's franchise had expired, and the company was issued a new 25-year franchise to operate as the sole electric distributor in Iloilo City once again. With the support of the Lopez family, PECO was able to secure its position as the main power distributor in the city and work towards improving its services and infrastructure.
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PECO's franchise expired in 2019 and was taken over by MORE Power
The Panay Electric Company, also known as Panay Electric or PECO, is an electric power distribution company in the Philippines. It served Iloilo City from 1923 until 2019, when its franchise expired and was taken over by MORE Power.
PECO was founded on May 14, 1921, by Philippine Revolution general and senator Esteban de la Rama, who was granted a franchise to install and operate an electric power system in several municipalities in Iloilo. In 1922, PECO became the majority owner of the Iloilo Light Company, and in 1923, it began serving as Iloilo City's electric power distributor. The company faced several challenges throughout its history, including financial and technical problems during martial law in the 1970s and a power supply crisis in Iloilo City in 2010. In 1996, the First Philippine Holdings Corporation of the influential Lopez family acquired 30% of PECO's capital stock, with the remaining 70% owned by the Cacho family.
In 2019, PECO's franchise expired, and lawmakers granted the franchise to MORE Power, a company owned by billionaire Enrique Razon Jr. This sparked a legal battle between the two companies, with PECO arguing that the takeover was unconstitutional and illegal. Despite PECO's objections, MORE Power initiated an expropriation case and was granted a 25-year contract to operate and serve Iloilo City's electricity distribution system.
The Iloilo City Regional Trial Court issued a writ of possession, allowing MORE Power to take over specified PECO assets, including substations and other infrastructure. This ensured uninterrupted service for residents and businesses through proactive consumer support measures. The Supreme Court also ruled in 2020 that PECO could no longer operate Iloilo City's distribution system, affirming the expiration of its franchise.
While PECO is no longer the main power distributor for Iloilo City, it continues to provide various services such as meter management, electrical infrastructure maintenance, and safety-related services. The transition from PECO to MORE Power as Iloilo City's power distributor marked a significant change in the city's power landscape after PECO's 97-year-long operation.
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The Cacho family were the previous owners
PECO's history can be traced back to 1921 when Philippine Revolution general and senator Esteban de la Rama was granted a franchise to establish an electric power system in several municipalities in Iloilo. De la Rama then organized PECO on May 14, 1921, and the company became the majority owner of the Iloilo Light Company in 1922. PECO took full control of the Iloilo Light Company in 1923 and began serving as Iloilo City's electric power distributor.
In 1974, under martial law, PECO faced technical and financial difficulties, resulting in several towns being taken over by the electric cooperative ILECO 1. Despite these challenges, PECO continued to serve Iloilo City, and in 1996, First Philippine Holdings Corporation acquired 30% of the company's capital stock, with the remaining 70% held by the Cacho family.
In the lead-up to the expiration of PECO's franchise in 2019, the company faced escalating controversy. MORE Power, owned by billionaire Enrique Razon, vied for control of Iloilo City's electricity franchise and accused PECO of blackmailing customers and neglecting technological investments. Despite PECO's defences, its franchise was not renewed, and MORE Power took over, ending PECO's 97-year-long operation in Iloilo City.
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Frequently asked questions
Panay Electric Company, also known as Panay Electric or PECO, was first owned by Philippine Revolution general and senator Esteban de la Rama. In 1927, Candelaria Soriano Cacho acquired the whole company, making it the first 100% Filipino-owned private company in the Philippines. In 1996, First Philippine Holdings Corporation of the influential López family of Iloilo, acquired 30% of the capital stock of PECO, leaving 70% for the Cacho family.
In 2019, PECO's franchise expired and was not renewed by Congress. Billionaire Enrique Razon-owned MORE Electric and Power Corporation (MORE Power) filed an expropriation case to acquire the assets of PECO.
MORE Power was granted a 25-year contract to serve and operate Iloilo City's electricity distribution system, ending PECO's 97-year-long operation in the city. Despite this, PECO continues to provide a variety of services, including meter management, electrical infrastructure maintenance, and safety-related services.
