MANILA, Philippines — House Bill (HB) No. 10926, which seeks to provide a fresh 25-year franchise for the Manila Electric Company (Meralco), has been approved by the House of Representatives on second reading.
During the latter part of Tuesday’s session, HB No. 10926 was brought to the floor, with House committee on ways and means chairperson and Albay 2nd District Rep. Joey Salceda, and committee on legislative franchises chairperson and Parañaque 2nd District Rep. Gus Tambunting sponsoring the proposed measure.
Article continues after this advertisementSeveral questions were raised by minority lawmakers regarding the price of electricity sold by Meralco, future plans to enter into nuclear energy, and other processes involving the delivery of power to consumers.
FEATURED STORIES BUSINESS National ID gives more Filipinos ‘face value BUSINESS BIZ BUZZ: Unwinding Gogoro … quietly BUSINESS Polvoron maker seeks P500 million capital for expansionAt the end, HB No. 10926 was approved via viva voce or voice voting, with minor amendments to specify Meralco’s role in restoring power during calamities, and providing power to areas not reached by electricity.
HB No. 10926 is a consolidation of three House bills — HB No. 9793 authored by Salceda; HB No. 9813 authored by Cagayan de Oro City 2nd District Rep. Rufus Rodriguez; and HB No. 10317 from former Speaker and now Marinduque Rep. Lord Allan Velasco.
Article continues after this advertisementMeralco’s new franchise is being proposed even with over three years left before its previous franchise ends.
Article continues after this advertisementAccording to business groups and lawmakers supportive of the bill, the new franchise will ensure economic stability as it would allow the company to continue operating and serving households and vital industries.
Article continues after this advertisementREAD: Rodriguez: Biz groups back new Meralco franchise to ensure stability
Last August 13, Salceda said Meralco’s franchise bill might be the most important proposal in Congress regarding the country’s industrial policy.
Article continues after this advertisementREAD: Salceda says Meralco franchise bill key to PH’s industrial policy
According to Salceda, Meralco is responsible for providing electricity to an area that accounts to half of the country’s gross domestic product.
“Meralco services an area responsible for about half the country’s entire GDP, and about 26 percent of the population,” he noted.
Salceda claimed that the Philippines stands to gain P204 billion if distribution utilities performed like Meralco.
He also claimed that the company had already complied with concerns raised, like Energy Regulatory Commission rules and issuances.
But minority lawmakers, like ACT Teachers Partylist Rep. France Castro, have asked whether or not Meralco has already addressed several concerns raised against the service provider.
Castro also asked whether there is a real public clamor for a new Meralco franchise, considering that the current franchise would expire only by 2028.
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According to Castro, the franchise renewal process should be transparent, adding that a comprehensive review of Meralco’s performance is needed.
READ: House urged to support calls for new Meralco franchise wingo
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