Group raises concern over ‘early push' for Meralco's franchise renewal

Energy consumer advocacy group People for Power (P4P) coalition raised concern over what it called an “early push" for the congressional franchise renewal of the Manila Electric Company (Meralco).

P4P convenor Gerry Arances said renewing Meralco's franchise four years before it expires in 2028 "will remove the ability of the government to hold them to account and protect consumers.” 

“Their franchise is still good for a few more years, they’re earning a lot of money, they can wait until consumers have their say,” Arances said.

Albay 2nd District Rep. Joey Salceda filed House Bill No. 9793, which seeks to renew Meralco’s franchise for another 25 years.

In a separate statement, Meralco spokesperson Joe Zaldarriaga said that “as a highly-regulated entity, Meralco has always been strictly compliant of the laws and regulations governing its franchise.”

Zaldarriaga said the filing of separate bills to renew the legislative franchise of Meralco by veteran and respected lawmakers is a firm validation of the relentless efforts of Meralco to deliver power and serve millions of Filipinos.

“Granting the franchise renewal would allow Meralco’s growing number of customers to continue enjoying stable and reliable electricity service, which is vital in powering not just households but also industrial and commercial customers that drive the country’s economic progress,” the Meralco official said.

Arances, meanwhile, also raised several issues against Meralco such as its “continuing use of 14.97% as its weighted average cost of capital (WACC) which has been used as the ceiling for its profit margin since 2011.”

Legislators have earlier questioned the figure, saying it should have gone lower because the figure was arrived at 13 years ago.  --VAL, GMA Integrated News