MBC backs Meralco franchise renewal

Meralco seeks bids for 500-MW renewable energy supplyThe Makati Business Club (MBC) is supporting the renewal of the Manila Electric Co. (Meralco) franchise, adding its voice to the growing number of organizations backing the power distributor firm.

MANILA, Philippines — The business group cited Meralco’s “pivotal role” in ensuring reliable and accessible electricity for households and businesses in the Philippines’ key economic regions.

The MBC highlighted that the franchise covers the National Capital Region (NCR), Bulacan, Cavite, Rizal and some parts of the provinces Pampanga, Laguna, Batangas and Quezon.

It noted that the NCR contributes 41.4 percent of the services sector’s economic performance, while the Calabarzon and Central Luzon regions comprise 10.8 percent and 8.3 percent, respectively.

Contributions to the industrial sector were at 25 percent for Calabarzon, 18.6 percent for the NCR, and 16 percent for Central Luzon, added the MBC.

READ: Big business group backs Meralco franchise renewal

“These figures underscore the critical importance of Meralco’s services in driving economic activity and growth in the country,” the MBC said in a statement.

Despite its support, the MBC said it acknowledges the concerns about high electricity prices in the Philippines.

“However, it is important to note that the Philippines boasts a liberalized energy market, devoid of government subsidies. In this context, a 2023 report by the International Energy Consultants has shown that Meralco’s distribution rates remain fair and reasonable, particularly given prevailing inflation rates,” it said. INQ

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