Salceda: Meralco’s new franchise to allow company improve system

Albay 2nd District Rep. Joey Salceda at the Kapihan sa Manila Bay. INQUIRER FILE PHOTO

MANILA, Philippines — President Ferdinand Marcos Jr.’s decision to sign into law a bill providing a fresh 25-year franchise for the Manila Electric Company (Meralco) would facilitate an improved system of providing power to households and business, Albay 2nd District Rep. Joey Salceda said on Tuesday.

Salceda in a statement said that during the discussions on Meralco’s franchise, the company committed to P206 billion in capital expenditures — aimed at reducing system losses while making distribution costs efficient.

The lawmaker, chairperson of the House of Representatives’ committee on ways and means, has been a staunch proponent of Meralco’s new franchise.

“During the deliberations for this franchise, Meralco committed to 206 billion in capital expenditures over the next five years to reduce systems losses and make distribution costs efficient.  It also committed to help power more electric vehicles and provide facilities for industries of the future, such as data centers,” he said.

“Meralco also committed to continuing to improve system reliability. Back in 2011, the average user experienced some 550 minutes in power interruptions. Now, it’s down to as low as 123 minutes in the entire year. Such reliability was unthinkable back in the 1990. And Meralco commits to doing better every year,” he added.

Malacañang earlier announced that Marcos has signed House Bill (HB) No. 10926, which will give Meralco its new franchise after the existing one expires by 2028.

HB No. 10926 is a consolidation of three separate proposals, including Salceda’s HB No. 9793, HB No. 9813 from Cagayan de Oro City 2nd District Rep. Rufus Rodriguez, and HB No. 10317 authored by Marinduque Rep. Lord Allan Velasco.

The Senate approved HB No. 10926 last February 3 on third and final reading.  The next day, the House adopted the Senate version of the said proposal.

READ: House adopts Senate version of new Meralco franchise bill 

Salceda has repeatedly vouched for Meralco’s capability, saying that the new franchise will be key to the country’s industrial policy.

Last August 2024, after the franchise bill moved past the House committee on legislative franchises, Salceda said Meralco is responsible for providing electricity to an area that accounts to half of the country’s gross domestic product — which means it is crucial for the economy to grow.

READ: Salceda says Meralco franchise bill key to PH’s industrial policy 

According to Salceda, he believes that if Meralco would provide electricity to the whole country, it would generate P204 billion in gross value added to the economy, “bringing our growth levels closer to what China experienced during its boom years.”

“Meralco has done good and promises to do better. This franchise will help ensure that happens,” he added.