Senate urged to put ‘guardrails’ on Meralco franchise push

PHOTO FROM ALEXIS CORPUZ/INQUIRER FILES

Millions of Filipino consumers may become vulnerable to even higher power bills if the Senate fails to set “guardrails” on Manila Electric Co.’s (Meralco) franchise renewal bill, such as limiting its energy supply deals with affiliates, according to a consumer advocate.

In a letter addressed to Senate President Francis “Chiz” Escudero, consumer rights advocate Romeo Junia called for the amendment of key provisions in the proposed measure that seeks to renew Meralco’s 25-year franchise.

These include timely enforcement of the Retail Competition and Open Access (RCOA) and the net metering provision of the Renewable Energy law. He also urged the Senate to bar the group from awarding power supply deals to Meralco-affiliated firms and prioritize those that offer cleaner and cheaper deals over “dirty coal or expensive plants.”

READ: House approves another 25-year franchise for Meralco

He also stressed the need to comply with rules governing the competitive selection process of the Department of Energy and Energy Regulatory Commission. Meralco officials, however, have been reiterating that all its bidding ensured “an open and transparent process that ensures and fairness and integrity.”

If the Senate opts not to act on them, Junia claimed this would allow Meralco to “simply continue [its] ability to abuse its dominant position as the largest distribution utility and energy player in the country.”

“[P]ower costs will likely increase even further if nothing is done to curtail Meralco’s apparent abuse of market power. The franchise renewal represents a very rare occasion where Congress can put limits on Meralco’s power,” he added.

The safeguards, Junia said, must be strengthened with penalties.

In November, the House of Representatives approved on final reading the House Bill 10926, providing another 25-year franchise to Meralco.

Meralco’s franchise is set to expire in 2028.

Its franchise area covers Metro Manila, Bulacan, Cavite, Rizal, and select areas in Pampanga, Laguna, Batangas, and Quezon.

More groups, including those led by business leaders such as the Management Association of the Philippines and the Makati Business Club, already voiced their support for Meralco.

The Federation of Philippine Industries said in June that if Congress decides to reject Meralco’s franchise renewal push, it would be “extremely counterproductive” and “a big disservice to Filipinos.”