Another group backs Meralco’s franchise renewal
MANILA, Philippines — An association of manufacturers joined the calls of other business groups for the renewal of Manila Electric Co.’s (Meralco) legislative franchise, which expires in 2028, amid the local power sector’s “fragile state.”
Federation of Philippine Industries (FPI) chairman Jesus L. Arranza made known the group’s stance in a statement released Friday, citing recent power woes that consumers are facing.
“It is in this light that we urge caution against disrupting the already fragile state of the electric power industry. Why fix something that isn’t broken? We see no reason to disrupt the continued operation of Meralco,” he said.
The FPI executive said that if Congress would decide to reject Meralco’s franchise renewal push, it would be “extremely counterproductive” and “a big disservice to Filipinos.”
He said businesses take a hit from power interruptions as they result in losses.
Arranza also warned that this may “discourage” investors from injecting capital into the Philippines.
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“Meralco’s ongoing network upgrades directly benefit our sector. Upgraded infrastructure improves power quality, reduces outages, and facilitates the integration of renewable energy sources. These factors are crucial for our global competitiveness,” he added.
Article continues after this advertisementREAD: Big business group backs Meralco franchise renewal
Other groups backing Meralco’s franchise renewal include the Management Association of the Philippines and the Makati Business Club.
Meralco’s franchise area covers Metro Manila, Bulacan, Cavite, Rizal, and select areas in the provinces of Pampanga, Laguna, Batangas and Quezon.
While more and more groups voiced their support for Meralco, the energy consumer advocacy group People for Power (P4P) coalition earlier questioned the “early push” for the franchise renewal.
P4P said renewing Meralco’s franchise too soon would “remove the ability of the government to hold them to account and protect consumers.”
