A prominent consumer and energy advocate has denounced the House of Representatives' recent vote to extend the 25-year franchise of the Manila Electric Company (Meralco).
In a statement Friday, November 8, Butch Junia said the chamber's approval of the Meralco franchise extension left out the plight of ordinary consumers who "bear the bigger burden of Meralco's distribution charges.
"There is so much Meralco has to explain and answer for under its franchise obligation to supply electricity in the least manner. And Congress is failing its duty to see to it that the public interest and welfare implicit in every franchise privilege it gives is protected when early renewal is approved without hearing all stakeholders," Junia stressed in his statement.
Last November 6, the House of Representatives, with 186 affirmative votes, seven negative votes, and four abstentions, passed House Bill 10926, which seeks to renew Meralco's franchise to construct, operate, and maintain a distribution system for the conveyance of electric power to consumers.
The current franchise is set to expire in 2028.
Junia, quoting Kabataan Party-list Raoul Manuel who opposed the bill, said Congress' rush to renew the Meralco franchise shows a "lack of consideration" for the public interest.
The advocate also questioned the House Franchise Committee's basis on renewing the Meralco franchise, particularly on the power distributor's compliance with its franchise mandate to supply electricity in the least cost manner.
"There is so much Meralco has to explain and answer for under its franchise obligation to supply electricity in the least manner. And Congress is failing its duty to see to it that the public interest and welfare implicit in every franchise privilege it gives is protected when early renewal is approved without hearing all stakeholders," he said.
Aside from this, Junia also pointed out that Meralco, over the past years, has also ventured in the power-generation sector, a potential “over-reach” of its franchise.
“Meralco’s franchise is for the operation of the system of wires and facilities for the distribution of electricity in a defined franchise area. This is language carried over from the franchise expiring in 2028 to the one extending 25 years thence. Yet the projects being cited are generation projects, which is entirely different from distribution. Is Meralco exceeding the bounds of the franchise by straddling the distribution and generation sectors of power?” he asked.
Junia called on the Senate to thoroughly review the franchise extension bill, now at the Senate Rule Committee, to ensure that the welfare of residential customers will not be set aside.
“House bill sponsor Rep. [Joey] Salceda says the Meralco bill will breeze through the Senate. We hope not, and we hope the Senate will do a better job listening to residential customers, notwithstanding that the power to grant franchises is lodged in the lower house,” he stressed.
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