MANILA - The House of Representatives' Committee on Legislative Franchises has cleared a significant legislative hurdle by approving the renewal of Manila Electric Co. (Meralco)'s franchise for an additional 25 years.
According to Philippines News Agency, the panel has consolidated House Bills 9793, 9813, and 10317, all proposing the extension of Meralco’s franchise, which is slated to expire in 2028. Albay Representative Joey Salceda, the author of one of the bills, described the renewal as "possibly the single most important private bill" in terms of its impact on the country's industrial policy.
Salceda highlighted Meralco's pivotal role in supporting the Philippines' major economic sectors, noting that the company services an area that contributes approximately half of the country's Gross Domestic Product (GDP) and caters to about 26% of the population. He emphasized the link between reliable service provision and economic growth, citing Meralco's significant investments of more than PHP220 billion from 2003 to 2022. These investments were directed towards new connections, asset renewals, and projects to support increasing electricity demands and government initiatives.
Moreover, in line with directives from the Energy Regulatory Commission (ERC), Meralco has also completed a substantial refund of PHP48 billion in distribution-related charges to its customers, reaffirming its compliance with regulatory standards and commitments.
The bill is now poised for discussion in the House plenary, where Salceda anticipates smooth passage. He stressed the thoroughness of the franchise review process, which assesses the compliance of grantees with their obligations. "In this regard, there can be little question. Meralco has fulfilled its end of the current franchise law," Salceda asserted.
Under its existing franchise, Meralco is authorized to construct, operate, and maintain a distribution system for delivering electric power to consumers across several regions including Metro Manila and the provinces of Cavite, Rizal, Batangas, Laguna, Quezon, and Pampanga.