Lawmaker endorses renewal of Meralco legislative franchise

MANILA, Philippines — Another official of the House of Representatives has endorsed the renewal of the legislative franchise of the country’s largest power distribution firm, the Manila Electric Co. (Meralco), for another 25 years.

“Renewing the franchise of Meralco will show potential investors that capital-heavy investments can benefit from long-term stability here in the Philippines as it is safeguarded by the government,” Cagayan de Oro 2nd District Rep. Rufus Rodriguez, who chairs the House committee on constitutional amendments, said.

“This, in turn, will result in improved service and economic conditions for Filipinos in the long run,” Rodriguez, who also sits as a member of the House committees on energy and economic affairs, added.

The senior administration lawmaker recently filed House Bill 9813 for the grant of a 25-year legislative franchise to Meralco – a measure that the lawmaker emphasized is necessary to build investor confidence in the country.

Rodriguez is the second legislator to have endorsed the renewal of Meralco’s franchise, after Albay 2nd District Rep. Joey Salceda, chairman of the House committee on ways and means, who said that renewing it for “another 25 years is good for the economy.”

Salceda, a former National Economic and Development Authority secretary-general, said that Meralco’s franchise deserves to be extended beyond 2028, for another 25 years, or until 2053.

“The case for renewing Meralco’s franchise is plain and simple: it has complied with the conditions of the franchise law and it is good for the economy and the consumer,” he added.

For Rodriguez, renewing Meralco’s franchise “sends a strong signal of economic stability to potential investors - whether local or foreign.”

Lawmakers no longer need to wait until 2028 to renew the legislative franchise, according to the senior legislator from Mindanao, since granting the renewal will “show the government’s commitment to achieving energy security.”

“Meralco-powered areas have demonstrated rapid economic growth in the past decades compared to those serviced by electric cooperatives. On this basis alone, it is imperative for the government to sustain this development in support of our economic trajectory,” he said.

Compared to areas serviced by electric cooperatives, Rodriguez pointed out that faster development could be observed in areas serviced by Meralco.

He similarly highlighted Meralco’s initiatives to promote consumer interests that are easily overlooked.

The power distributor’s efforts to maintain a high level of service stability and reliability at the least cost consistent to its mandate and its initiatives to extend help even beyond its service area through its social development programs have benefited not just its customers, but even the underserved Filipinos in other parts of the country.

Rodriguez reiterated that Meralco has such a huge responsibility that it would be a disservice to compromise the welfare of consumers because of unfounded issues and allegations.

Meralco’s franchise is set to expire in 2028. As the largest electricity distributor in the country, the company services 7.8 million customers in Metro Manila, Bulacan, Cavite, Rizal, and select areas in Pampanga, Laguna, Batangas and Quezon.