The consensus is overwhelming. Renewing Manila Electric Company's (Meralco) franchise is critical for the country's economy and will serve the best interests of the Filipino people.
On Wednesday, the Makati Business Club (MBC) joined the growing list of business and power producer groups calling on Congress to renew Meralco's franchise. The club emphasized the importance of stability in the power sector to "serve the best interests of the Filipino people and the Philippine economy."
"Meralco is the largest private distribution utility in the country, their network plays a pivotal role in ensuring reliable and accessible electricity for households and businesses in the country's key economic regions," the MBC said.
Previously, the Management Association of the Philippines (MAP) and Private Electric Power Operators Association (PEPOA) have expressed support for renewing Meralco's franchise for the same reasons.
Meralco's franchise area covers the National Capital Region, Bulacan, Cavite, Rizal and select areas in Pampanga, Laguna, Batangas and Quezon. The National Capital Region contributes 41.4% of the services sector's economic performance, with CALABARZON at 10.8% and Central Luzon at 8.3%. Similarly, for the industrial sector CALABARZON contributes 25.0%, with NCR at 18.6% and Central Luzon at 16.0%.
These figures underscore the critical importance of Meralco's services in driving economic activity and growth in the country.
The MBC added, "We acknowledge concerns about electricity prices in the country, which are comparatively high among ASEAN nations. However, it is important to note that the Philippines boasts a liberalized energy market without government subsidies. In this context, a 2023 International Energy Consultants 2 report has shown that Meralco's distribution rates remain fair and reasonable, particularly given prevailing inflation rates."
According to the group, since Meralco's initial franchise, the distribution utility has achieved near-universal electrification within its franchise area and has consistently met growing demand. Moreover, a renewed franchise for Meralco aligns with government objectives to enhance energy security, resilience, and sustainability.
Meralco has demonstrated its commitment to promoting renewable energy and has implemented programs to assist customers in transitioning to cleaner power sources, the MBC said.
The group further stated, "Given the significant role played by MERALCO in serving households and critical sectors such as services and industry, we urge your office to prioritize reliable energy provision to sustain economic growth and attract investments. We therefore endorse the renewal of MERALCO's energy franchise, while also recognizing the need for targeted adjustments where necessary."
The MBC said allowing businesses to grow and create jobs is vital to the country's economy. In addition, the group's advocacy to provide secure, affordable, and renewable energy is aligned with Meralco's corporate DNA.
"We remain committed to supporting initiatives that foster economic development and enhance the welfare of our nation," the MBC added.
Last week, the MAP issued a statement urging Congress to immediately renew Meralco's service franchise to ensure a reliable power supply. The group recognizes Meralco's commitment to green energy as it actively champions the government's renewable energy (RE) goals by supporting programs under the RE Act 2008. Its franchise area boasts a remarkable 64% share of the Green Energy Option Program's (GEOP) total energy consumption.
"We urge the House of Representatives Committee on Legislative Franchises to favorably consider Meralco's positive impact and approve its franchise renewal, thereby ensuring stability in the power sector and ultimately serving the best interests of the Filipino people and the Philippine economy," the MAP said.
On Tuesday, PEPOA, a non-profit organization established in 1995, whose 15 members include the Davao Light and Visayan Electric of the Aboitizes and MORE Power of the Razon group, said Meralco's track records showed it had provided reliable electricity that served as the backbone of businesses and enhanced the quality of life for millions of Filipinos.
"Its dedication to operational excellence and resilience demonstrates its firm resolve to reduce system losses and the duration and frequency of power interruptions that greatly benefitted electricity end-users," the group said in a statement.
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