House OKs Meralco franchise bill on final reading

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The House of Representatives on Wednesday approved in third and final reading a bill granting the Manila Electric Company (Meralco) a 25-year legislative franchise to operate.

Meralco’s current franchise expires in  2028.

Lawmakers voted 186-7 with four abstentions in favor of House Bill (HB) No. 10296, which the House approved in second reading last September.

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Meralco,  the country’s largest power distributor, primarily services the National Capital Region (NCR), which accounts for more than half of the country’s gross domestic product.  

Under its existing franchise, Meralco is authorized to construct, operate and maintain a distribution system for the conveyance of electric power to consumers in the cities and municipalities and barangays of Metro Manila, Cavite, Rizal, Batangas, Laguna, Quezon and Pampanga.

HB No. 10296 is a consolidated version of HB No. 9793 authored by Albay Rep. Joey Salceda, chair of the Committee on Ways and Means; HB No. 9813 filed by Cagayan de Oro City Rep. Rufus Rodriguez; and HB No. 10317 filed by Marinduque Rep. Lord Allan Velasco, chair of the Committee on Energy.

Salceda sponsored and defended the bill with Parañaque City Rep. Gustavo Tambunting, chair of the committee on legislative franchises, after the House briefly suspended plenary deliberations on Malacañang’s P6.352- trillion proposed national budget for 2025.

“Meralco’s mandates under its current franchise were clear. (The company) has met these mandates; hence, it’s franchise merits renewal,” Salceda said in sponsoring the bill. 

The bill states  Meralco should modify, improve, or change its facilities, poles, lines, systems and equipment for the purpose of providing efficient and reliable service and reduce electricity costs “in the interest of the public good and as far as feasible and whenever required by the Energy Regulatory Commission.

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