Over 20 industry groups back Meralco franchise renewal — senator

More than 20 industry groups have expressed support for the renewal of Meralco's franchise, according to a press statement by Senator Joel Villanueva on Tuesday.

Villanueva, author of Senate Bill 2824 which seeks to grant Meralco a fresh 25-year authority to operate, said many business and industry groups in the country have backed the timely renewal of the company's franchise, including the Federation of Philippine Industries (FPI), the American Chamber of Commerce of the Philippines Inc. (AmCham) the British Chamber of Commerce of the Philippines (BCCP), and the Japanese Chamber of Commerce and Industry of the Philippines Inc. (JCCPI).

The FPI and the JCCIPI expressed belief that the renewal of Meralco's franchise will increase business confidence in the manufacturing sector, which can positively impact the economy, the press release said.

"We see no reason to disrupt the continued operation of Meralco, and not renewing its franchise is not only extremely counterproductive but also a big disservice to Filipinos," said FPI Chairman Jesus Lim Arranza, adding that the uninterrupted service from the power distributor would allow manufacturers to plan their future operations.

For his part, JCCIPI Vice President and Executive Director Nobuo Fujii said, "Renewing Meralco’s franchise is crucial for sustaining the positive trajectory of economic growth and development in the country. A favorable decision will ensure that the manufacturing industry, along with many others, can continue to thrive and contribute to the nation’s prosperity."

For their part, AmCham and BCCP stressed the Philippine energy industry would benefit from Meralco's franchise renewal.

"The renewal of Meralco's franchise is critical to maintaining the energy stability necessary for the continued growth and competitiveness of the industries we represent. Meralco's proven track record and strategic vision align with the Philippines' economic and social development goals, further underscoring the importance of this renewal," AmCham Executive Director Ebb Hinchliffe said.

Meanwhile, BCCP Executive Director Christopher James Nelson said, "The British Chamber strongly recommends its franchise renewal, emphasizing Meralco's pivotal role in the local energy sector. It also reinforces its commitment to integrating global best practices in the industry, thereby significantly benefitting consumers through enhanced service reliability, efficiency, and ensuring sustainable energy solutions that foster economic growth and stability in the Philippines."

Other groups that have expressed support for Meralco's franchise renewal, the press statement said, are the European Chamber of Commerce of the Philippines (ECCP), Philippine Iron and Steel Institute (PISI), Bankers Association of the Philippines (BAP), Institute of Integrated Electrical Engineers of the Philippines Inc (IIEE), Data Center Association of the Philippines (DCAP), and Samahan sa Pilipinas ng Mga Industriyang Kimika (SPIK), Philippine Retailers Association (PRA), IT and Business Process Association of the Philippines (IBPAP), Philippine Hotel Owners Association Inc. (PHOA), Semiconductor and Electronics Industries of the Philippines (SEIPI), Chamber of Automotive Manufacturers of the Philippines (CAMPI), National Real Estate Association Inc. (NREA), Philippine Association of Legitimate Service Contractors, Inc. (PALSCON), Private Hospitals Association of the Philippines, Inc. (PHAPi), Women's Business Council Philippines Inc. (WBC), Cold Chain Association of the Philippines (CCAP), Philippine Association of Meat Processors Inc. (PAMPI).

Reiterating his statement during his privilege speech last December, Villanueva said, "Meralco has long been a partner in our nation's progress, but with that partnership come accountability. This bill ensures that Meralco continues to meet the needs of our people while preparing for the challenges and opportunities of the future."

The Senate has been conducting deliberations on the renewal of the franchise of the power utility distributor.

Senator Sherwin Gatchalian, vice chairman of the Senate committee on energy, earlier said the submission of a Meralco franchise renewal bill to the Upper Chamber would be an opportunity to scrutinize the power distributor's performance.

Last November, the House of Representatives approved House Bill 10296 granting a 25-year franchise on third and final reading. House ways and means panel chairperson Joey Salceda of Albay, one of the authors of the measure, had said the bill should not face opposition in the Senate.

However, Consumer groups United Filipino Consumers and Commuters (UFCC) and People for Power Coalition (P4P) have earlier expressed concern about the early push to renew Meralco's franchise, four years ahead of its expiry.

Last December, consumer rights advocate Romeo Junia wrote to Senate President Francis "Chiz" Escudero expressing concern about the current version of the House Bill 10926, saying its present form "will simply continue Meralco's ability to abuse its dominant position as distribution utility and energy player in the country."

Asked for comment on Junia's letter, Meralco's Joe Zaldarriaga said that the distribution utility company has always been compliant will all laws, regulations and policies governing its franchise and the energy sector in general. — Anna Felicia Bajo/ VDV, GMA Integrated News