House told to fast-track hearings on Meralco’s franchise renewal bid
CONGRESSMEN should discuss Manila Electric Co.’s (Meralco) application to extend its franchise for another 25 years as early as possible to ensure there won’t be any surprises that can compromise its customers’ access to power, a consumer advocate said.
Acting on the franchise four years before its franchise expires would let the government make arrangements for the continuous distribution of electricity to millions of Filipinos should legislators reject the application, Mary Kathryn Sison, convenor of Bantay Konsyumer, Kalsada, Kuryente told BusinessWorld on the sidelines of a forum last week.
“I appreciate the fact that the House of Representatives committee on legislative franchises is immediately acting on the matter of the legislative franchise of Meralco… because it distributes a big chunk of the country’s electricity,” she said.
“We have to figure out a way to adjust should Congress find them unfit to hold the franchise again for distribution,” she added.
Meralco is the main power distributor for Metro Manila and nearby areas, covering 39 cities and 72 municipalities, delivering electricity to at least 7.75 million Filipinos.
Some consumer groups earlier said the bid to renew Meralco’s franchise is untimely due to increasing electricity rates caused by rising demand.
Meralco last month increased its rate for residential customers to P11.4139 per kilowatt-hour due to higher generation charges.
“The problem with electricity is really more on the supply side, and supply is not the mandate of Meralco,” Ms. Sison said.
A Department of Energy (DoE) and Interior and Local Government (DILG) joint memorandum issued in 2020 could help address power supply woes, she said.
“The DoE and the DILG have already entered into a joint memorandum to sort of localize [power supply],” she said.
Implementing localized energy projects would allow active participation from local government units and directly provide power to residents, she added.
Energy officials at a congressional hearing in May said they expect the creation of renewable, battery storage and baseload energy facilities that can generate 1,100 megawatts of electricity this year.
The Lopez family owned Meralco in 1962 until the late dictator Ferdinand E. Marcos in 1972 nationalized power generation and transmission. The Lopezes regained control of Meralco after the February 1986 People Power Revolution.
The family, through the First Philippine Holdings Corp., was the sixth-largest stakeholder of Meralco as of December 2021.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.
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