The committee, chaired by Rep. Juan Miguel Zubiri (Lakas, Bukidnon), heard officials of the Energy Regulatory Commission, National Electrification Commission, Department of Energy, and Meralco on the history and coverage of the power distribution firm’s franchise.
Zubiri said consumer groups and other concerned parties will be invited to future hearings.
"We want to hear the views of all concerned. We want our inquiry into this franchise renewal application as exhaustive and transparent as possible," he said.
The application is contained in Bill 4239 authored by Majority Leader Neptali Gonzales II of Mandaluyong City. It seeks to extend Meralco’s franchise, which is expiring next year, for another 25 years.
Meralco obtained its first franchise in 1902. Its service areas are the entire Metro Manila, and parts of Cavite, Laguna, Quezon, Rizal, Bulacan, and Pampanga.
Gonzales said the distribution firm "has a proven track record for service with integrity and excellence."
"It has been repeatedly cited by regional surveys as one of the best-managed companies in Asia. It has striven to support the competitiveness of Philippine commerce and industry through service that takes advantage of modern technology and process," he said.
At the same time Meralco, through its various electrification programs and socialized pricing, "has worked to bring the benefits of electricity to poor households in both the urban and rural areas that it serves," he added.
Most stockholders of the power distribution firm are Filipinos and domestic corporations. A number of them are government corporations, including the Social Security System, Land Bank of the Philippines, Home Development Mutual Fund, and Philippine Health Insurance Corp.
Individual shareholders include the Lopez family, family of Jose and Raul Concepcion, and Antonio Cojuangco. Each of the three has less than one percent of Meralco’s total shares.
Meralco’s board of directors is compared of Felipe Alfonso, former Agriculture Secretary Carlos Dominguez, banker Octavio Espiritu, Jesus Francisco, former Petron chairman Monico Jacob, Federico Lopez, Manuel Lopez;
Former Commission on Elections Chairman Christian Monsod, Victoriano Reinoso, Washington Sycip, and Margarito Teves, who is apparently representing Land Bank, of which he is president.
Manuel Lopez serves as board chairman and chief executive officer, with Alfonso as vice chairman and Francisco as president and chief operating officer.