6 days Ago By Tatiana Maligro
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rapplerAds.displayAd( "mobile-middle-1" );MANILA, Philippines – President Ferdinand Marcos Jr. signed into law a measure extending the franchise of the Manila Electric Company (Meralco) for another 25 years, Executive Secretary Lucas Bersamin confirmed on Tuesday, April 15.
Marcos signed the law granting Meralco’s franchise extension on Friday, April 11. Bersamin said the official Republic Act number and full text of the law have yet to be released.Meralco’s chairman and chief executive officer Manuel Pangilinan thanked Marcos and Congress for the renewal of the power distributor’s franchise.
He said the measure will allow Meralco to implement long-term energy infrastructure projects, as well as expand its distribution network.“This development fortifies our commitment to deliver stable, reliable and affordable electricity to millions of Filipinos across our franchise area,” Pangilinan said.Meralco services around 7.
75 million Filipinos by distributing power to Metro Manila, Bulacan, Cavite, Rizal, as well as parts of Batangas, Laguna, Quezon and Pampanga.Early renewalThe House of Representatives first passed Meralco’s franchise renewal on third and final reading in November 2024 with 186 affirmative votes, seven against and four abstentions.Meralco’s current franchise was not set to expire until 2028, but Parañaque 2nd District Representative Gus Tambunting said Congress traditionally began deliberations over the power distributor’s franchise five years before its expiration.
(READ: Meralco’s 25-year franchise renewal passed on 2nd reading amid overpricing concerns)The Senate also passed the measure in February 2025, with Senator Risa Hontiveros as the sole dissenting vote. She said Meralco should first refund its customers for overcharging before being granted a new franchise.The Energy Regulatory Commission (ERC) in March ordered Meralco to refund P19.
95 billion to its customers due to the power distributor’s “over-recovery” of rates from July 2022 to December 2024.Must Read ERC orders Meralco to refund P19.95 billion to customers The Power 4 People (P4P) Coalition earlier urged the ERC to rule on Meralco’s cross-ownership issue, saying Meralco breached the 50% ownership threshold through its $3.
3 billion deal with AboitizPower and San Miguel Corporation.Under the partnership, the three power giants would invest in two gas-fired plants in Batangas. (READ: Pangilinan, Aboitiz, Ang team up for P185-billion integrated LNG facility)“The numbers show that Meralco may have already breached the 50% threshold under the law.
From this alone, the ERC has sufficient grounds to make a decision,” said P4P convenor Gerry Arances. – Rappler.com.
