THE House committee on legislative franchises has approved a consolidated bill seeking the renewal for another 25 years of the franchise of distribution utility Manila Electric Company (Meralco), four years before its expiration in 2028.
The panel chaired by Paranaque Rep. Gus Tambunting on Monday approved the consolidated versions of of House Bill (HB) Nos. 9793, 9813 and 10317 authored by Reps. Joey Sarte Salceda of Albay, chair of the House committee on ways and means; Rufus Rodriguez of Cagayan De Oro City, chair of the House committee on constitutional amendments; and Lord Allan Jay Velasco of Marinduque, chair of the House committee on energy, respectively.
Rodriguez moved the approval of the consolidated bill saying, “practically everything has been discussed, and has been ventilated, and have been answered” in just two marathon hearings.
Salceda on January filed HB No. 9793 which said Meralco’s franchise should be renewed “to ensure the continuous and uninterrupted supply and distribution of quality and reliable electric service to the customers within its franchise area in consideration of the nature of the vital service it provides.”
“Electricity consumption in the Meralco franchise area already represented more than 50 percent of the country’s total electricity consumption in 2022. Meralco’s proven track record over the span of 120 years has assisted greatly in the development of the country’s key economic growth areas,” the bill’s explanatory note said.
Sta. Rosa Rep. Dan Fernandez has been opposing the early franchise renewal, saying “questionable actions by Meralco have led to high power rates and abuses against consumers.”
Fernandez earlier said while San Miguel Corp.’s SPPC power generating subsidiary terminated a Power Supply Agreement (PSA) with Meralco, the distribution utility last January contracted 1,800 megawatts of supply with the same company but at rates higher than the one that was terminated.
In one of the panel’s hearings, Meralco representatives said the acquisition of supply from the same company that terminated its previous PSA was allowed by law.
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.
Salceda asked the committee to consider aligning the consolidated bill with Republic Act (RA) 12011, which granted the Negros Electric Power Corp.(NEPC) a franchise to manage and operate a distribution utility in Negros. RA 12011 is the first electric distribution franchise recently signed by President Marcos.
“It is reasonable to take the NEPC franchise as this administration’s policy on legislative franchises for distribution utilities,” Salceda said.
The panel also approved, upon motion of Rep. Presley de Jesus (PL, Philreca), HB No. 9696 granting the franchise to operate distribution systems to Sorsogon I Electric Cooperative Inc. (SORECO I), and HBs 9775 and 9838, granting the same to Sorsogon Electric Cooperative II (SORECO II).
HB No. 9696, authored by Sorsogon Rep. Wowo Fortes, would grant SORECO I the franchise to operate in the areas of Bulan, Bulusan, Casiguran, Irosin, Juban, Magallanes, Matnog and Sta.Magdalena in Sorsogon.
HB Nos. 9775 and 9838, authored by Reps. Marie Bernadette Escudero and Fortes respectively, grants SORECO II the franchise to operate in the areas of Donsol, Pilar, Castilla, Gubat, Prieto Diaz and Barcelona in Sorsogon.
