The House of Representatives has approved on the final reading the bill that would extend the Manila Electric Company’s (MERALCO) franchise to 25 years.
Business World reported that with a vote of 186-7-4, House Bill No. 10926 was approved, granting MERALCO to maintain its electric distribution systems in areas including Bulacan, Cavite, Rizal, and parts of Batangas, Quezon, Laguna, and Pampanga.
A key condition of the extension is that MERALCO must ensure at least 30% of its outstanding capital stock is owned by Filipinos, with noncompliance risking franchise revocation.
Additionally, the distribution utility (DU) firm must submit an annual report to Congress detailing its operational developments, facing a fine of Php 1 million per day for delayed submissions.
The bill’s Senate counterpart, Senate Bill No. 2824, filed by Senator Joel J. Villanueva, is still pending review in the Senate Rules Committee. Albay Rep. Jose Ma. Clemente S. Salceda is anticipating swift Senate approval, potentially bypassing the need for a bicameral conference.
With over 7.6 million customers, MERALCO’s distribution service covers 39 cities and 72 municipalities, including the nation’s key economic hubs.
Public investment analyst Terry L. Ridon and Foundation for Economic Freedom President Calixto V. Chikiamco expressed optimism that an extended franchise would reduce investment uncertainty, supporting MERALCO’s infrastructure expansion plans.
Earlier this year, MERALCO pledged Php 100 billion toward critical infrastructure and partnered with Actis for the Terra Solar Project, a Php 200-billion solar plant in Central Luzon. The extended franchise is expected to benefit consumers by potentially lowering electricity rates and driving down generation prices in power supply agreements.
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