Meralco welcomes franchise extension

The Manila Electric Co. (Meralco) welcomed yesterday the Malacanang’s decision to sign into law the company’s mega franchise.

Republic Act 9209 signed by President Arroyo on June 9, grants Meralco a 25-year consolidated franchise over its existing service area.

Prior to this, RA 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA) gave back to Congress the exclusive authority to grant franchises for electric distribution.

RA 9209 requires Meralco to operate and maintain its electric system in a "superior manner" for purpose of providing efficient and reliable electric service and reduced electricity cost.

Under the new franchise, Meralco must also provide "open and non-discriminatory access to its distribution system consistent with the EPIRA".

The law consolidates 50 different franchises covering 111 cities and municipalities in the provinces of Bulacan, Batangas, Cavite, Laguna, Quezon, Rizal and Metro Manila. All areas enumerated are part of Meralco’s existing service area. – Donnabelle Gatdula