Senate approves Meralco franchise

The Senate approved yesterday a 25-year franchise for the Manila Electric Co. (Meralco) to continue operating an electricity distribution system in Metro Manila and nearby provinces.

Approval came only a few days before the biggest of Meralco’s 50 franchises for its coverage areas — the one for Metro Manila — expires on Sunday.

Meralco welcomed the Senate’s decision. "We are glad. A franchise is very important for an entity as Meralco," the company’s utility economics head Yvanna de la Peña said.

The congressional privilege is contained in House Bill 4461, which the Senate approved as passed by the House of Representatives with only minor changes. House Majority Leader Neptali Gonzales II is the bill’s principal author.

Sen. Joker Arroyo, as chairman of the committee on public services, sponsored the measure in the Senate.

He said during the hearings, no person or entity had come forward to oppose the proposed franchise grant or offered to compete with Meralco in distributing electricity in Metro Manila and its environs.

Under the bill, Meralco is given the privilege to continue operating a power distribution system in the metropolis and nearly a hundred towns and cities in Pampanga, Bulacan, Rizal, Laguna, Cavite, Batangas and Quezon.

Its retail rates are to be regulated by the Energy Regulatory Commission and shall be made public and transparent.

Meralco is prohibited from transferring, leasing or assigning its privilege without the approval of Congress. It is required to submit an annual report of finances and operations to the legislature.

The so-called mega-franchise will include at least 50 franchises covering 111 cities and towns all over Luzon.

According to De la Peña, at least 11 of these 50 franchises were set to expire on March 24. These are Malabon City, Mandaluyong City, Makati City, Parañaque City, Caloocan City, Las Piñas City, Manila, Navotas, Pasay, Quezon City, and San Juan. — With Donnabelle Gatdula