The Manila Electric Co. (Meralco) has secured the backing of another major business group in its bid to renew its franchise which is set to expire by 2028.
The Makati Business Club (MBC), in a statement yesterday, said it is recommending the renewal of Meralco’s franchise. Last week, the Management Association of the Philippines (MAP) similarly backed the rollover of Meralco’s franchise.
“Meralco is the largest private distribution utility in the country, their network plays a pivotal role in ensuring reliable and accessible electricity for households and businesses in the country’s key economic regions,” MBC said.
Meralco’s franchise area covers the National Capital Region (NCR), Bulacan, Cavite, Rizal and select areas in Pampanga, Laguna, Batangas and Quezon.
MBC said the franchise renewal is crucial since NCR contributes 41.4 percent of the services sector’s economic performance, with Calabarzon at 10.8 percent and Central Luzon at 8.3 percent.
Similarly, for the industrial sector Calabarzon contributes 25 percent, with NCR at 18.6 percent and Central Luzon at 16 percent.
“We acknowledge concerns about electricity prices in the country, which are comparatively high among Asean nations. However, it is important to note that the Philippines boasts a liberalized energy market, devoid of government subsidies,” MBC added.
The group also said since Meralco’s initial franchise, the company has achieved near-universal electrification within its franchise area and has consistently met growing demand.
“Moreover, a renewed franchise for Meralco aligns with government objectives to enhance energy security, resilience and sustainability. Meralco has demonstrated its commitment to promoting renewable energy and has implemented programs to assist customers in transitioning to cleaner power sources,” MBC said.
MAP for its part said Meralco’s franchise renewal “ensures reliable electricity that is crucial for businesses and Filipinos’ well-being.”
MAP also said Meralco’s “impact goes beyond its own service area” as the company actively supports fellow utilities, particularly electric cooperatives, in times of natural disasters.
“…We urge the House of Representatives Committee on Legislative Franchises to favorably consider Meralco’s positive impact and approve its franchise renewal, thereby ensuring stability in the power sector and ultimately serving the best interests of the Filipino people and the Philippine economy,” the group said last week.
