Shameless.
There’s no other word prominent consumer and energy advocate Butch Junia could use to describe the recent vote of the House of Representatives 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.
Almost unanimous vote
Last November 6, the House of Representatives, in an almost unanimous vote of 186 affirmative votes, seven negative votes, and four abstentions, passed on third and final reading 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.
The bill, authored by Albay Representative Joey Salceda and 17 other solons, mandates Meralco to supply electricity to consumers “in the least costly manner.”
The company shall also be required to operate and maintain all electric distribution facilities, lines and systems for electric services “in a superior manner.”
“Meralco is an exemplar of how service reliability can create economic growth and development,” Salceda was quoted in a statement. (Salceda, Junia was quick to point out, wasn’t even a resident of any of the franchise areas of Meralco.)
A mockery?
For Junia, however, Meralco’s history serves as a mockery of its mandate to provide “affordable” electricity to its consumers in its franchise areas in Metro Manila, Cavite, Rizal, Bulacan, and parts of Batangas, Laguna, Quezon and Pampanga.
The consumer advocate also questioned the House Franchise Committee on whether it has really substantiated Meralco’s claims that it provided the “least cost” of energy.
“Is a franchise holder that volunteers to refund P13 billion in overcharges or over recoveries delivering electricity in the least cost manner? Might be honest in that instant but definitely not least cost,” Junia remarked.
Over-reach?
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.
Through its subsidiary Meralco PowerGen (MGEN), founded in 2010, Meralco has also delved into the operation of several power plants in Luzon.
One such project is the 1,200-megawatt coal power plant in Quezon province, which PowerGen last September reportedly asked for an exemption from a Department of Energy (DOE) ban on coal operations after plans to convert it into a liquefied natural gas plant were shelved.
“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.
Ball now in the Senate
Junia called on the Senate to thoroughly review the franchise extension bill to ensure that the welfare of residential customers will not be set aside.
As of press time, the bill is now lodged at the Senate Rules Committee, led by Senator Francis Tolentino. Senator Joel Villanueva has also filed a Senate version of the bill seeking to extend Meralco’s franchise.
“House bill sponsor Rep. 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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