The House of Representatives has given its final approval to a bill granting Manila Electric Co. (Meralco) a 25-year franchise extension, ensuring the continued provision of electricity to the National Capital Region and surrounding areas. The bill, House Bill No. 10926, passed on Wednesday with a vote of 186-7-4.
The franchise extension allows Meralco to construct, operate, and maintain its electric distribution systems in Metro Manila, including Bulacan, Cavite, Rizal, and parts of Batangas, Quezon, Laguna, and Pampanga. The bill mandates that Meralco offer at least 30% of its outstanding capital stock to Filipinos, with failure to comply resulting in franchise revocation.
The power distributor is also obligated to provide an annual report of its operations, including the rollout, development, and expansion of its operations, to Congress. Noncompliance with this requirement will incur a P1 million fine per working day.
The franchise extension, approved four years ahead of the initial concession’s expiry, now awaits Senate approval. A counterpart measure, Senate Bill No. 2824, filed by Senator Emmanuel Joel J. Villanueva on Sept. 12, is currently pending at the Senate rules committee.
Albay Representative Jose Ma. Clemente S. Salceda expressed confidence in the bill’s swift passage in the Senate, suggesting that a bicameral conference committee may not even be necessary.
“A stable and affordable power sector is necessary for economic growth, and Meralco has the burden of providing electricity to the nation’s most important economic hub,” said Terry L. Ridon, a public investment analyst and convenor of think-tank InfraWatch PH, highlighting the significance of Meralco’s role in the region, which contributes half of the country’s gross domestic product output.
The approval of Meralco’s franchise extension signals a commitment to ensuring a reliable and consistent power supply for Metro Manila and surrounding areas, crucial for continued economic development.
metrosundaily
