House of Representatives (Ellson Quismorio/ MANILA BULLETIN)

Did the Manila Electric Company (Meralco) violate its congressional franchise when it comes to the required annual submission of it operation reports?

A vice chairman of the House Committee on Legislative Franchises appears to think so, although the power distribution giant has something to say about it.

According to Surigao del Sur 2nd district Rep. Johnny Pimentel, Meralco submitted financial and operation reports only for the years 2018 to 2022.

Meralco's legislative franchise--embodied in Republic Act (RA) No.9209 of 2003--mandates the yearly submission of such documents to Congress.

"It is very clear in Republic Act 9209 that the submission of reports should be done on a yearly basis. Now as stated by the ComSec (Committee Secretariat), they submitted only for several years,” Pimentel said in a recent hearing of the committee.

"If you did not submit your reportorial requirement for these years, then well, basically, you have already violated Section 14 of Republic Act 9209," he added.

Non-compliance with the law is ground for franchise cancellation or revocation per Republic Act 9209, or “An Act Granting The Manila Electric Company A Franchise To Construct, Operate And Maintain A Distribution System For The Conveyance Of Electric Power To The End-Users In The Cities/Municipalities Of Metro Manila, Bulacan, Cavite And Rizal, And Certain Cities/Municipalities/Barangays In Batangas, Laguna, Quezon And Pampanga."

Since Meralco’s franchise is already 20 years old, Pimentel said a total of 20 reports should have been submitted as required by the law.

“For the record, you have submitted only seven reports,” said the Mindanaoan.

There are calls among House members--particularly from Santa Rosa lone district Rep. Dan Fernandez--to split the mega-franchise of Meralco into three, even as he has accused the utility of monopolistic practices.

But according to Meralco head of Regulatory Management lawyer Jose Ronald Valles, the power distributor has never been remiss in its reportorial requirement.

"Contrary to claims that Meralco is not compliant to reportorial requirements, the power distributor has clarified that it has religiously submitted its annual financial and operating reports since 2002, a year after it was granted its franchise in 2001," Valles said in a statement.

He said the proof is readily available and that its annual report "is a public document and is easily accessible to the public".

"In fact, it has been submitting the same to the Philippine Stock Exchange (PSE) and the Securities and Exhange Commission (SEC), since the company is a publicly listed entity and is bound by corporate reportorial requirements," noted Valles.

Meralco also reiterated that it strictly adheres to the law and operates within the bounds of its franchise and the areas it serves.

The utility, which serves the entire National Capital Region (NCR) and the nearby provinces, has 7.6 million customers.