Albay Representative and chairman of the House Ways and Means Committee Joey Sarte Salceda is pushing for the renewal of Manila Electric Company’s (MERALCO) legislative franchise, extending for another 25 years.
In a report by Manila Standard, the current franchise of MERALCO is under the Republic Act 9209, which dates back to 2003 and is set to end in 2028.
Salceda had filed House Bill (HB) 9793 to update RA 9209, aiming to extend MERALCO’s franchise for 25 years, as the power generation’s track records proved its contribution to the economic growth of the country.
Albay’s representative further iterated that the power generation firm had delivered 48,916 gigawatt hours (GWh) of electricity to more than 7.6 million households, offering an average retail rate of Php 9.52 per kilowatt-hour (kWh) in 2022 alone, proving its contribution to cater 50% of the country’s electricity consumption.
And though the Philippines had one of the highest power rates in Southeast Asia, Salceda cited the International Energy Consultants (IEC) report that revealed neighboring countries like Malaysia, Indonesia, and Thailand had their electricity subsidized by the government while the Philippines reflected the actual cost of electric service.
Furthermore, MERALCO refunded almost Php 48 billion to consumers, following the Energy Regulatory Commission’s (ERC) decision to refund the distribution-related charges from 2012 to 2015, which resulted in the lowering of the distribution prices.
The generating firm had also offered a lifeline mechanism to consumers who only consume 100 kWh and below, offering around 20% to 100% discount as part of the societal obligation to the marginalized consumers.
MERALCO has been powering 38 cities and 73 towns, spanning Metro Manila, Bulacan, Cavite, and Rizal, as well as Batangas, Laguna, Quezon, and Pampanga.
