By Sheldeen Joy Talavera, Reporter
POWER distributor Manila Electric Co. (Meralco) has committed to delivering “stable, reliable, and affordable electricity” to its customers after its franchise was extended for another 25 years.
President Ferdinand R. Marcos, Jr. on April 11 signed into law the measure extending Meralco’s franchise for another 25 years, Presidential Communications Office Undersecretary Clarissa A. Castro said on Tuesday.
“We thank President Ferdinand R. Marcos, Jr. for his invaluable support. We are grateful to the Senate and the House of Representatives for enacting this important measure,” Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said in a statement.
“The renewal reflects a shared effort to ensure that Meralco continues to meet the evolving needs of consumers through innovation, operational excellence, and dependable service,” he added.
Mr. Pangilinan said the new franchise enables the company to implement “long-term energy infrastructure projects that will further improve the delivery of electricity to homes, businesses, and industries that fuel the country’s development.”
Meralco’s current franchise is set to expire in 2028.
With the extension, the company will have the authority to distribute power to Metro Manila, Bulacan, Cavite, Rizal and select areas in Batangas, Laguna, Quezon and Pampanga until 2053.
It has around eight million customers in 39 cities and 72 municipalities.
The House of Representatives approved the measure in November, while the Senate approved its version on final reading in February.
“With the continued trust of our leaders and stakeholders, we remain committed to transparency, regulatory compliance, and corporate social responsibility,” Mr. Pangilinan said.
“Meralco stands firm in its mission to support the government’s nation-building agenda, drive economic progress, and improve the lives and economic well-being of our people,” he added.
Asked to comment, Juan Paolo E. Colet, managing director of China Bank Capital Corp., said the passage of the law will allow Meralco to push ahead with its large capital expenditure (capex) plans to sustain profit growth.
“We are optimistic that the company will use the franchise extension as an opportunity to improve its services and lower the cost of electricity,” he said in a Viber message.
Based on its filing with the Energy Regulatory Commission, Meralco has proposed a capex of approximately P215.36 billion for its regulatory period spanning 2026 to 2029.
The power distributor said it aims to augment the capacity of its network, relocate assets required for the implementation of government infrastructure and third party-initiated projects, purchase nonnetwork assets necessary for the efficient operation of the electric distribution system, and deploy automation and technology projects.
“Although Meralco rates are relatively cheaper compared with the rest of the country, the distribution utility should be able to make electricity more competitive compared with our neighboring countries in the ASEAN (Association of Southeast Asian Nations) to attract more energy-intensive manufacturing businesses,” Peter Louise D.C. Garnace, an equity research analyst at Unicapital Securities, Inc., said via Viber.
Mr. Garnace said the company should continue investing in “indigenous and cleaner energy sources” to limit the country’s exposure to the volatility of fossil fuels.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.