Salceda says Meralco franchise bill key to PH’s industrial policy

MANILA, Philippines — The franchise bill for the Manila Electric Company (Meralco) might be the most important proposal in Congress regarding the country’s industrial policy, Albay 2nd District Rep. Joey Salceda said on Tuesday.

Salceda in a statement thanked Parañaque 2nd District Rep. Gus Tambunting for allowing the approval of consolidated versions of House Bills (HB) No. 9793, 9813 and 10317 — all of which seek to provide Meralco a new 25-year franchise — at the House of Representatives’ committee on legislative franchises.

Tambunting heads the said panel.

READ: House panel OKs new 25-year Meralco franchise bid

According to Salceda, Meralco is responsible for providing electricity to an area that accounts to half of the country’s gross domestic product — which means it is crucial for the economy to grow.

“I thank Chairman Gus Tambunting for his fair and extensive evaluation of the proposed extension of the Meralco franchise. The franchise is possibly the single most important private bill for industrial policy in this country. Meralco services an area responsible for about half the country’s entire GDP, and about 26 percent of the population,” Salceda said.

“Meralco is an exemplar of how service reliability can create economic growth and development,” he added.

According to Salceda, the country stands to gain P204 billion if distribution utilities performed like Meralco — noting that the company had already complied with concerns raised, like Energy Regulatory Commission (ERC) rules and issuances.

“Using estimates from the PSA IO tables and data from the ERC on outages due to power supply by DUs, the country would gain a net GVA of P204.29 billion every year if all its ECDUs performed like Meralco. This is the fruit of some P220 billion Meralco invested in reducing system losses and system interruptions,” Salceda said.

“Meralco has also fully complied with the ERC’s rules and issuances. Some P48.3 billion in consumer refunds have also been delivered in full. I expect the franchise bill to sail smoothly through the floor. 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 added.

READ: House urged to support calls for new Meralco franchise

Earlier, the House’s media affairs said that HB Nos. 9793, 9813 and 10317 were consolidated during the committee on legislative franchises’ hearing on Monday.

HB No. 9793 was authored by Salceda, HB No. 9813 by Cagayan de Oro 2nd District Rep. Rufus Rodriguez, and HB No. 10317 by Marindque Rep. Lord Allan Velasco.

According to Rodriguez and Velasco, issues raised against Meralco have been discussed already, claiming that these were answered by the company.

“Practically everything has been discussed, and has been ventilated, and have been answered” Rodriguez said.

“Meralco has long been serving our country well, and I truly believe they are deserving of a new franchise,” Velasco added.

Meralco’s new franchise has been backed by key members of the House, including the three committee chairpersons, as it is seen to ensure stability as the distribution utility services key economic hubs like Metro Manila, Cavite, Rizal, Batangas, Laguna, Quezon and Pampanga.

Rodriguez last June urged his fellow lawmakers to heed the advice of major business groups in the country, which have supported calls for a new franchise for Meralco.

According to the lawmaker, letters of support from the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI), the Private Electric Power Operators Association (PEPOA), the Makati Business Club (MBC), and the Management Association of the Philippines (MAP) show a wide support for Meralco’s continued operations.

READ: Group asks House panel to approve new franchise for Meralco 

But Minority lawmakers, like ACT Teachers Partylist Rep. France Castro, have asked whether Meralco has already addressed several concerns raised against the service provider.

Castro also asked whether there is a real public clamor for Meralco’s franchise renewal, as it is set to expire by 2028 or over three years from now.

According to Castro, the franchise renewal process should be transparent, adding that a comprehensive review of Meralco’s performance is needed.