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08/30/2025

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08/30/2025
LAWIN.news

Philippine House Advances 25 Year Meralco Franchise

by Mae De Vera, LAWIN.news November 6, 2024
written by Mae De Vera, LAWIN.news November 6, 2024
Meralco, INQUIRER FILES
170

In Manila, Philippines, the House of Representatives passed a bill allowing the Manila Electric Company (Meralco) to continue its operations under a renewed franchise for another 25 years. This decision was made during a plenary session where House Bill (HB) No. 10926 received 186 affirmative votes. Meanwhile, seven members voted against it, and four abstained. The bill consolidates proposals from three separate House bills. These were authored by Albay 2nd District Representative Joey Sarte Salceda, Cagayan de Oro City 2nd District Representative Rufus Rodriguez, and Marinduque Representative Lord Allan Velasco.

The bill seeks to extend Meralco’s ability to construct, operate, and maintain its electric distribution system, which is crucial for a significant portion of the country. Meralco covers an area contributing to about half of the country’s GDP and services around 26% of the population. Salceda emphasized the economic impact of Meralco’s operations, stating that the country could potentially gain a substantial amount if distribution utilities performed at par with the company.

However, the bill’s passage was not without opposition. Representative Raoul Manuel from the Kabataan Partylist expressed concerns over the renewal. He questioned the urgency of the bill, given that Meralco’s current franchise is set to expire in 2028. Manuel argued that there is no immediate need to pass the renewal and highlighted issues regarding electricity costs in the country. The Philippines is known to have some of the highest electricity rates in Asia, and Manuel pointed to this as an ongoing burden for the public.

Manuel voiced doubts about the renewal process, suggesting that it might be part of a broader scheme by influential groups close to the administration to dominate the power sector. He highlighted the need for a thorough evaluation of Meralco’s performance record and service improvement plans before granting an extension. Manuel stressed that the renewal should not proceed hastily without considering the interest of ordinary citizens.

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Mae De Vera, LAWIN.news

Mae De Vera is a passionate advocate, creative professional, and entrepreneur. A graduate of Political Science from Saint Louis University and a law student of Arellano University, Mae is dedicated to empowering marginalized communities through outreach programs and advocacy. With a background in digital artwork, event flyer design, ESL teaching, and business management, Mae brings a versatile skill set to her endeavors. She also embraces her love for nature through farming, integrating sustainability into her life. Mae’s leadership experience as a consistent school student leader reflects her commitment to making a difference. Today, she combines her creativity, advocacy, and entrepreneurial spirit to create impactful stories and initiatives that inspire change. Disclaimer: The views and beliefs expressed by the author do not necessarily represent those of LAWIN.news, its management, editorial board, or staff.

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