MANILA: The bill renewing the franchise of Manila Electric Co. (Meralco) for another 25 years has hurdled committee level at the House of Representatives.
According to a news release on Tuesday, the House Committee on Legislative Franchises approved the consolidation of House Bills (HBs) 9793, 9813 and 10317, all of which propose the renewal of Meralco’s legislative franchise, which is set to expire in 2028.
Albay Rep. Joey Salceda, author of HB 9793, said Meralco’s franchise renewal is “possibly the single most important private bill” for industrial policy in this country.
He highlighted that the power distribution giant’s track record has assisted greatly in the development of the country’s key economic growth areas.
“Meralco services an area responsible for about half the country’s entire GDP (gross domestic product) and about 26 percent of the population. Meralco is an exemplar of how service reliability can create economic growth and development,” Salceda said in a statement.
To support economic dev
elopment and improve people’s quality of life, Salceda said, Meralco invested more than PHP220 billion from 2003 to 2022 for new connections, asset renewals and load growth projects to serve more customers and their expanding electricity needs, while continuing to support government projects.
In compliance with a decision by the Energy Regulatory Commission (ERC) directing the refund of distribution-related charges, he said Meralco completed a PHP48 billion refund to customers.
“Meralco has also fully complied with the ERC’s rules and issuances. Some PHP48.3 billion in consumer refunds have also been delivered in full,” he added.
Salceda said he expects the bill to “sail smoothly” in the House plenary.
“The role of the franchise review process in Congress is to see whether a grantee has complied with its mandates. In this regard, there can be little question. Meralco has fulfilled its end of the current franchise law,” he said.
Under its existing franchise, Meralco is authorized to construct, operate and
maintain a distribution system for the conveyance of electric power to consumers in the cities and municipalities and barangays of Metro Manila, Cavite, Rizal, Batangas, Laguna, Quezon and Pampanga.
Source: Philippines News Agency
