Meralco franchise bill okayed on 2nd reading

By Reina C. Tolentino – September 26, 2024
From The Manila Times

THE House of Representatives on Tuesday approved on second reading a bill that seeks to renew the franchise of power distributor Manila Electric Co. (Meralco) for another 25 years.

House Bill 10926, as amended, reached the House plenary on Tuesday night and hurdled second reading via a voice vote among lawmakers.

“As one of the principal authors of the bill, I support its approval on second reading. This will give stability to all franchise areas of Meralco,” Cagayan de Oro City 2nd District Rep. Rufus Rodriguez told The Manila Times on Wednesday.

Meralco’s current franchise will expire in 2028.

Albay 2nd District Rep. Joey Salceda, chairman of the House Committee on Ways and Means, told the plenary that Meralco’s franchise “merits renewal,” noting that “the first mandate is least [a] cost mandate. It complies with all the rules on competitive selection, and abides by ERC (Energy Regulatory Commission) rules on maximum rates.”

The Albay lawmaker said that in his view, Meralco was “highly dependable,” with a “reasonable price mandate.”

“It is on the lower end of rates among its neighboring ECDUs (electric cooperatives and distribution utilities) in the region,” he pointed out.

“Meralco also complies with the lifeline rates and the senior citizen discount and has not required… any bailout from taxpayers,” Salceda added. “It is complying with the anti-market abuse mandate.”

The 1987 Constitution states that “No bill passed by either House shall become a law unless it has passed three readings on separate days, and printed copies thereof in its final form have been distributed to its Members three days before its passage, except when the President certifies to the necessity of its immediate enactment to meet a public calamity or emergency.”

The Constitution also states, “Every bill passed by the Congress shall, before it becomes a law, be presented to the President.”

Meralco shares closed down P1, or 0.22 percent, to P449 apiece on Wednesday.