THE SENATE on Monday approved on third and final reading a proposed measure that will extend Manila Electric Co.’s (Meralco) franchise for another 25 years.
With an 18-1-0 vote, senators approved House Bill No. 10926, which will allow the power provider to continue constructing, operating, and maintaining its electric distribution systems in areas such as Metro Manila, Bulacan, Cavite, Laguna, Batangas, and Rizal.
“We believe that we can improve Meralco’s services and provide better and more reasonable electricity prices,” Senator Emmanuel Joel J. Villanueva, who sponsored the measure, told the plenary following the approval.
“So again, we stand by our ‘yes’ vote knowing that this measure not only renews a franchise but also strengthens our country’s energy security and consumer rights.”
Under the bill, Meralco will have to allow Filipinos to hold at least 30% of its outstanding capital stock, or a higher percentage, or face franchise revocation.
It must also submit an annual report of its finances and operations to the Philippine Congress by April 30 after the measure takes effect. The report must include details on its rollout of services, audited financial statements, and plans to expand its business.
The power distributor may face a fine of P1 million for each working day of noncompliance if it fails to submit the yearly report.
Under the Electric Power Industry Reform Act (EPIRA) of 2001, power suppliers are mandated to ensure a reliable supply of electricity in a “least-cost manner” or at reasonable rates.
In his third address to Congress in July last year, President Ferdinand R. Marcos Jr. sought a review of EPIRA to address issues affecting the energy sector, particularly high energy prices.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — John Victor D. Ordoñez
