House renews Meralco franchise expiring in 2028
The House of Representatives has unanimously voted to renew for another 25 years the franchise of power distributor Manila Electric Co. (Meralco), even though the current one is valid until 2028.
During Wednesday’s plenary session, 186 lawmakers approved on third and final reading House Bill No. 10926 while seven opposed the draft measure and four abstained from voting.
Kabataan party-list Rep Raoul Manuel, one of those who voted against the bill, cited at least four reasons for his opposition, including the lack of a reason for its immediate passage.
Explaining his vote at the plenary, Manuel pointed out, “There is no urgency whatsoever to pass (HB 10926) because Meralco’s current franchise expires in 2028. The haste in its renewal manifests the absence of consideration for public interest.”
He lamented the high cost of electricity provided by the power company, citing a study which showed the Philippines has the highest power rates in Asia. “This is a huge burden, not only to ordinary consumers but also to small businesses,” the lawmaker pointed out.
Against public interest
Manuel also noted that there were speculations about the haste in renewing Meralco’s franchise, claiming that “there are indications this is a part of a bigger scheme by oligarchs close to the administration to control the power sector, like what happened in the Visayas.”
He further asserted that Meralco’s performance record and its plans to improve its services for consumers have yet to be thoroughly examined, which went against the interest of ordinary Filipinos.
“As a representative of the youth and the people, I cannot allow the passage of a law that would only benefit the interest of a few and not of the many Filipinos,” Manuel said, adding, “We should prioritize public welfare and not the interest of big businesses and their political allies.”
HB 10926 is a consolidation of three bills renewing for another 25 years the franchise granted to Meralco under Republic Act 9209 to build, operate and maintain a distribution system for the conveyance of electric power to end users in Metro Manila and the nearby provinces of Bulacan, Pampanga, Cavite, Rizal, Batangas, Laguna and Quezon.
The bill mandates the power distributor to operate and maintain all distribution facilities, lines and systems for electric services, and to modify, improve and change such facilities or systems as may be required by the Energy Regulatory Commission (ERC) or Department of Energy.
Yearly report to Congress
HB 10926 also requires Meralco to submit to Congress, particularly the House committee on legislative affairs and Senate committee of public services, an annual report of its operations and finances on or before April 30 of every year.
Failure to do so will mean a fine of P1 million per working day of noncompliance.
The Congress-issued reportorial compliance certificate is needed before the ERC accepts any application for certificate of public convenience and necessity, or any other permit filed by the company.
The draft measure also directs Meralco to supply power in the least costly manner to end users with the rates and charges for the distribution of electricity to be regulated by the ERC.
HB 10926, likewise, includes an equality clause where existing and potential franchise grantees will be given equal privilege.
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