House approves another 25-year franchise for Meralco

Meralco, INQUIRER FILES

MANILA, Philippines — The House of Representatives on Wednesday approved on final reading the bill seeking to provide another 25-year franchise to the Manila Electric Company (Meralco).

During the plenary session, House Bill (HB) No. 10926 was approved with 186 members voting in the affirmative, seven negative votes, and four abstentions.

HB No. 10926 is the consolidated version of three House bills namely, HB No. 9793 authored by Albay 2nd District Rep. Joey Sarte Salceda; HB  No. 9813 authored by Cagayan de Oro City 2nd District Rep. Rufus Rodriguez; and HB No. 10317 authored by Marinduque Rep. Lord Allan Velasco.

READ: House approves on 2nd reading new 25-year franchise for Meralco

The bill was approved on second reading last September 25. The new Meralco franchise was proposed even though the current franchise has three years left before it ends.

Earlier, Salceda highlighted the importance of the bill as Meralco is responsible for providing electricity to an area that accounts for half of the country’s gross domestic product.

“Meralco services an area responsible for about half the country’s entire GDP, and about 26 percent of the population,” he said last August 13, adding that the country could gain P204 billion if distribution utilities performed like the electric power distribution company.

However, Kabataan Partylist Rep. Raoul Manuel said he is not in favor of the franchise renewal.

Manuel explained his “no” vote, saying there is no pressing need to enact the law because the present franchise will expire in 2028.

“Rushing this renewal shows a lack of consideration for the public interest. Second, the Filipino people continue to suffer from Meralco’s exorbitant electricity bills,” he said in Filipino.

Manuel also pointed out that the Philippines is one of the Asian countries with the highest electricity rate.

“There is serious doubt as to why this renewal is suddenly being rushed. There are indications that this is part of a larger scheme by oligarchs close to the administration to control the power sector, similar to what happened in the Visayas,” he said in Filipino.

“Meralco’s performance record and their plans to improve service to consumers have not been properly evaluated. Approving franchise renewal without thorough review is against the interest of ordinary citizens,” he added.