Meralco to file bid for new franchise

Publicly-listed Manila Electric Co. (Meralco) is set to file within the year an application for the renewal of its franchise, a company official said yesterday.

Meralco director for corporate communications Elpi A. Cuna said the filing is necessary because its existing franchise will expire in the first half of 2003.

The power distribution giant has 16 applications for franchise renewal pending before the National Electrification Commission (NEC).

"Meralco is expected to prepare and file within the year with the House committee on legislative franchises an application for the renewal of franchises with pending applications at the NEC and of franchises that are to expire in the next four years," he said. This committee is chaired by Bukidnon Rep. Jose Miguel Zubiri.

When Republic Act 9136 otherwise known as Electric Power Industry Reform Act (EIRA) took effect last June 26, 2001, the power to grant franchises that was delegated to NEC was removed.

Congress now, he said, has the sole authority to grant electric franchises. As a result, it has become uncertain whether NEC could still act upon Meralco’s pending applications. – Donnabelle Gatdula