FPI supports Meralco franchise renewal

MANILA, Philippines — The Federation of Philippine Industries (FPI) has joined industry groups that have voiced support for the renewal of the franchise of Manila Electric Co. (Meralco) to ensure continued delivery of a stable and reliable electricity service.

In a letter to Parañaque Rep. Gustavo Tambunting, chairman of the House Committee on Legislative Franchises, FPI chairman Jesus Arranza said the group strongly endorses the renewal of Meralco’s franchise.

Arranza said the major electricity consumers like FPI’s members are concerned with the recent demand-supply imbalances in the power grid.

He said power interruptions not only disrupts production, but also leads to revenue losses and impedes business growth.

For the group, an uninterrupted electricity supply is a challenge discouraging local and foreign investments in the country.

“It is in this light that we urge caution against disrupting the already fragile state of the electric power industry. Why fix something that isn’t broken? We see no reason to disrupt the continued operation of Meralco, and not renewing its franchise is not only extremely counterproductive but also a big disservice to Filipinos,” Arranza said.

FPI said Meralco has consistently delivered stable, reliable and affordable electricity service.

In addition, the power distributor’s implementation of the interruptible load program has been instrumental in mitigating the impact of supply imbalances.

Meralco’s ongoing network upgrades are also seen to benefit the manufacturing sector.

“With Meralco’s continued operations, manufacturers can confidently plan for the future. This stability fosters an environment for business growth and job creation across the Philippines,” Arranza said.

He said the renewal of Meralco’s franchise would ensure the stability needed to propel Philippine industries forward.

Earlier, business groups Makati Business Club and Management Association of the Philippines also threw their support for the renewal of Meralco’s franchise to make sure there will be access to reliable electricity to support the economy.

Meralco’s franchise will expire in 2028.