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Khomfie Manalo

Meralco franchise crucial for businesses and Filipinos – MAP




Renewing the franchise of the Manila Electric Company (Meralco) is critical for businesses and will serve "the best interests of the Filipino people and the Philippine economy," said the Management Association of the Philippines (MAP).


In a statement, the MAP urged 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.


The group also commended Meralco's smart meter program, which is the largest in the country and provides prepaid electricity service to nearly 100,000 customers. Another initiative, the own time-of-use program, or the Peak/Off-Peak (POP), allows eligible customers to save on their electric bills for off-peak use.


In addition, MAP credited Meralco with demonstrating its willingness to cater to the needs of global hyperscalers with high power quality demands and adopt cutting-edge solutions like microgrid technology.


The statement added, "It prioritizes operational efficiency and resiliency, meeting or exceeding standards set by the Energy Regulatory Commission (ERC). It has also consistently improved its System Loss, achieving a rate below the mandated cap and ranking among the lowest nationwide."


A report from the Independent Energy Consultants (IEC) has confirmed the reasonableness of MERALCO's rates, particularly distribution rates. Notably, when adjusted for inflation, the average electricity rate has even decreased since implementing the EPIRA. This focus on efficiency translates to cost savings for consumers.


MAP said that Meralco had achieved nearly 100% electrification in its franchise area, with social responsibility a cornerstone of its commitment. It implements a Lifeline Rate Program offering 20% to 100% discount for the poorest customers.


Additionally, senior citizens receive a 5% discount, reflecting MERALCO's recognition of the importance of supporting all segments of society.


"Meralco's impact goes beyond its service area. It actively supports fellow utilities, particularly electric cooperatives, during natural disasters. This commitment to mutual aid strengthens the overall resilience of the Philippine power grid. Furthermore, MERALCO demonstrates its dedication to national well-being through active collaboration with the government. From initiatives like the Build, Build, Build Program to Public-Private Partnerships (PPP), Meralco plays a vital role in driving the nation's progress," the MAP added.

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