Cagayan de Oro City 2nd district Rep. Rufus Rodriguez (Facebook)

Cagayan de Oro City 2nd district Rep. Rufus Rodriguez has welcomed the Makati Business Club (MBC) and Management Association of the Philippines' (MAP) endorsement of his House measure for the renewal of the Manila Electric Company's (Meralco) operation franchise. 

“The support of these widely respected business groups for the renewal of Meralco’s franchise for another 25 years, as proposed in our House Bill (HB) No. 9813, is a step in the right direction,” Rodriguez said in a statement Friday, June 7. 

“It means that the business community is for safeguarding energy supply availability and security ahead of the expiration of Meralco’s legislative franchise in 2028,” he said. 

Rodriguez says the move also shows that the business sector wants to protect its investments for its workers, customers and other stakeholders by getting assurance from Congress that energy supply would continue to be available at competitive prices. 

The House of Representatives Committee on L.egislative Franchises chaired by Parañaque City 2nd district Rep. Gus Tambunting has already started hearings on the proposed Meralco franchise renewal. 

In a letter to the committee, MBC said Meralco, being the largest power distributor in the country, “plays a pivotal role in ensuring reliable and accessible electricity for households and businesses in the country’s key economic regions". 

Meralco’s franchise area covers Metro Manila, Bulacan, Cavite, Rizal and select areas in Pampanga, Laguna, Batangas, and Quezon. 

MBC said Metro Manila “contributes 41.4 percent of the services sector's economic performance, with Calabarzon at 10.8 percent and Central Luzon at 8.3 percent,” while for the industrial sector, Calabarzon contributes 25 percent, with Metro Manila at 18.6 percent and Central Luzon at 16 percent. 

“These figures underscore the critical importance of Meralco's services in driving economic activity and growth in the country,” the group said. 

It acknowledged concerns about electricity rates in the country, which are among the highest in ASEAN. 

“However, it is important to note that the Philippines boasts a liberalized energy market, devoid of government subsidies. In this context, a 2023 report by the International Energy Consultants has shown that Meralco's distribution rates remain fair and reasonable, particularly given prevailing inflation rates,” MBC said. 

On the other hand, MAP said the renewal of Meralco’s franchise “ensures reliable electricity that is crucial for businesses and Filipino’s well-being". 

MAP cited the distributor’s green energy efforts, with its franchise area boasting “a remarkable 64-percent share of the Green Energy Option Program’s total energy consumption". 

Meralco also “prioritizes operational efficiency and resiliency, meeting or even exceeding standards set by the Energy Regulatory Commission (ERC)", and has likewise “consistently improved its system loss, achieving a rate below mandated cap and ranking among the lowest nationwide,” the group said. 

MAP noted that Meralco has achieved “almost 100-percent electrification in its franchise area". 

“Meralco’s impact goes beyond its own service area. It actively supports fellow utilities, particularly electric cooperatives, in times of natural disasters. This commitment to mutual aid strengthens the overall resilience of the Philippine power grid,” it said.