Senate Oks 25-year Meralco franchise renewal
Credit to Author: Cecille Suerte Felipe| Date: Tue, 4 Feb 2025 00:00:00 +0800
MANILA, Philippines — The Senate approved on third and final reading yesterday a measure renewing the franchise of the Manila Electric Co. (Meralco) for 25 years.
Voting 18 affirmative, one negative and zero objection, Senate President Francis Escudero said senators approved House Bill 10926, an act renewing for another 25 years the franchise granted to Meralco under Republic Act No. 9209.
Meralco’s current franchise is set to expire in 2028.
With the renewed franchise, Meralco is mandated to construct, operate and maintain a distribution system for the conveyance of electric power to end-users in the cities and municipalities of Metro Manila, Bulacan, Cavite and Rizal, as well as certain cities, municipalities and barangays in Batangas, Laguna, Quezon and Pampanga.
Meralco estimates that more than seven million Filipinos are supplied with electricity by the company.
Sen. Joel Villanueva, sponsor of the proposal, said the measure not only extends Meralco’s franchise but also strengthens the country’s energy security and protects the rights of consumers.
Senate Deputy Minority Leader Risa Hontiveros, who objected to the measure, argued that Meralco should first refund consumers for past overcharges.
“We need stronger protections and guidelines, set in law, so that consumers will be protected, even when regulatory agencies fail, refuse to or are unable to act,” she said.
“We should not reward Meralco’s misdeeds with a brand new legislative franchise…They should first return the billions they over-collected from the people,” she added.
Hontiveros said that Meralco has, over the years, failed to fulfill its obligations to serve consumers, as evidenced by excessively high electricity bills.
“Before even considering a franchise renewal, my view is that Meralco must be made to properly refund its customers for its past overcollections,” Hontiveros declared.