Let there be light

Power utility franchise renewal presents a challenge and opportunity for Congress to ensure that the nation will have modern and sufficient power systems capable of serving its future needs and interests. A well-conducted franchise renewal is critical if a country is going to ensure that the needs and interests of its people are met.

Franchising authorities, or Congress, which undertake the renewal process, must do so in a well-thought-out manner by conducting congressional probes to ascertain the public’s needs and interests thoroughly. Congress must persevere in the process to achieve the resulting public utility service best suited to the needs and interests of the populace.

Then we have Albay Representative and chairperson of the House Ways and Means Committee Joey Salceda, who, after carefully pondering his role as a public servant, thereby putting a premium on the common good and the general welfare and well-being of the Filipinos, has put forward the renewal of the Manila Electric Company’s, or Meralco, legislative franchise, extending it for another 25 years.

Meralco’s public utility franchise, granted under Republic Act 9209 in 2003, is set to expire four years from now until 2028.

Salceda had filed House Bill 9793 to update RA 9209, aiming to extend Meralco’s franchise for 25 years, as the power generation’s track records proved its contribution to the country’s economic growth.

Albay’s representative further iterated that the power generation firm had delivered 48,916-gigawatt hours, or GWh, of electricity to more than 7.6 million households, offering an average retail rate of P9.52 per kilowatthour in 2022 alone, proving its contribution to cater 50 percent of the country’s electricity consumption.

And though the Philippines had one of the highest power rates in Southeast Asia, Salceda cited the International Energy Consultants, or IEC, report that revealed neighboring countries like Malaysia, Indonesia, and Thailand had their electricity subsidized by the government. At the same time, the Philippines reflected the actual cost of electric service.

Furthermore, Meralco refunded almost P48 billion to consumers following the Energy Regulatory Commission’s decision to refund the distribution-related charges from 2012 to 2015, which resulted in the lowering of the distribution prices.

The generating firm had also offered a lifeline mechanism to consumers who only consume 100 kWh and below, offering around 20 percent to 100 percent discount as part of the societal obligation to the marginalized consumers.

Meralco has been powering 38 cities and 73 towns, spanning Metro Manila, Bulacan, Cavite, and Rizal, as well as Batangas, Laguna, Quezon, and Pampanga.

Meralco refunded almost P48 billion to consumers following the Energy Regulatory Commission’s decision to refund the distribution-related charges from 2012 to 2015

Batangas wants Meralco service

With the coming Holy Week and the summer months, Batangueños have signed a petition expressing their support for Meralco to take over electricity distribution in the municipality.

The Sangguniang Bayan of Nasugbu passed Resolution 368 on 4 December 2023 to express dissatisfaction with the current provider, Batangas I Electric Cooperative, Inc., or BATELEC I. Some 22,695 residents and businesses signed the petition, highlighting concerns about excessive electricity bills, frequent power interruptions, and poor service quality that disrupt day-to-day lives and operations.

These issues have significantly impacted the community, burdened consumers, and hindered the growth of local businesses.

“The Sangguniang Bayan understands the frustrations of our people. Their voices were heard loud and clear. Our residents have struggled with unreliable and expensive electricity for too long,” Nasugbu Vice Mayor Mildred Sanchez shared.

Meralco’s public utility franchise, granted under Republic Act 9209 in 2003, is set to expire four years from now until 2028.