Meralco eyes more long-term projects under renewed franchise
The Manila Electric Co. (Meralco), the power distributor of billionaire Manuel V. Pangilinan, has committed to invest more in energy projects after President Marcos extended its franchise for another 25 years or until 2053.
Pangilinan, who serves as Meralco chair and chief executive officer, expressed gratitude to Mr. Marcos and lawmakers for backing the renewal of the firm’s current franchise, which is set to expire in 2028.
“The fresh franchise enables us to implement long-term energy infrastructure projects that will further improve the delivery of electricity to homes, businesses and industries that fuel the country’s development,” Pangilinan said in a statement on Tuesday.
“It also allows us to continue investing in the modernization and expansion of our distribution network—making it more resilient to climate-related disruptions—while introducing innovations that enhance efficiency and raise customer experience,” he added.
In a message to Malacañang reporters, Executive Secretary Lucas Bersamin said Mr. Marcos signed Meralco’s legislative franchise on April 11.
According to him, a copy of the law will be posted on the Official Gazette once it is assigned a corresponding Republic Act number.
In February, the House of Representatives adopted the Senate’s version of House Bill No. 10926 that proposed to renew Meralco’s franchise until 2053.
Congress transmitted the final version of the franchise bill to the President for his signature on March 14.
Its present franchise is provided for under Republic Act No. 9209 signed by President Gloria Macapagal-Arroyo in June 2003.
Meralco’s franchise area covers Metro Manila, Bulacan, Cavite, Rizal and selected areas in Pampanga, Laguna, Batangas and Quezon.
Sought for insights, Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said the extension “puts to rest any remaining uncertainty on the franchise of Meralco.”
“The renewal will also allow Meralco to push ahead with its large capex (capital expenditures) plans to sustain profitable growth. We are optimistic that the company will use the franchise extension as an opportunity to improve its services and lower the cost of electricity,” Colet added.
