Meralco seeks 25-year extension of franchise
The Manila Electric Co. (Meralco) has taken steps to lower the energy rates in its franchise areas, the country’s biggest power distributor assured the Senate as it sought the chamber’s approval to extend its legislative franchise.
Interpellated by Senate Minority Leader Aquilino “Koko” Pimentel III on Tuesday night, Sen. Joel Villanueva, the sponsor of the measure seeking to allow Meralco to operate for another 25 years, cited its critical role in providing a steady supply of energy to the country’s main economic centers.
But Pimentel noted that Meralco had been imposing higher electricity rates on residential customers compared to commercial users. On average, it is charging commercial establishments P10.50 per kilowatt-hour (kWh) while their residential consumers pay P11.74 per kWh.
“Commercial users charge [their electricity costs] as business expense and they exist for profits.
Residential users, on the other hand, exist for their families,” Pimentel said.
According to Villanueva, Meralco was working on bringing power costs down for residential customers.
“They are into it. With this [new] franchise that they are applying for, they are aware that they also need to improve their services,” he said.
