MAP backs renewal of Meralco franchise

MANILA, Philippines — Business group Management Association of the Philippines (MAP) yesterday expressed its support for the renewal of the franchise of Manila Electric Co. (Meralco) to ensure the availability of reliable electricity to support the economy.

“The MAP strongly supports the renewal of the franchise of Meralco which ensures reliable electricity that is crucial for businesses and Filipinos’ well-being,” MAP president Rene Almendras and MAP energy committee chair Ruth Owen said in a statement yesterday.

This statement comes amid the proposed renewal of Meralco’s franchise through House Bill 9813.

Meralco’s franchise will expire in 2028.

MAP said it recognizes the electricity distributor’s commitment to green energy as it actively champions the government’s renewable energy (RE) goals and supports programs under the RE Act of 2008.

The power distributor’s franchise area has a 64 percent share of the Green Energy Option Program’s  total energy consumption.

It is also leading in customer choice programs under the Electric Power Industry Reform Act (EPIRA), through a 65 percent participation rate in the retail market.

In addition, it facilitates the installation of RE systems for over 7,000 customers.

Through its smart meter program, the utility company is providing prepaid electricity service to nearly 100,000 customers.

Its own time-of-use program, marketed as Peak/Off-Peak is enabling eligible customers to save on their electric bills for off-peak use of electricity.

The company has also shown its willingness to cater to global hyperscalers, which have high power quality demands, as well as to adopt cutting-edge solutions like microgrid technology.

Furthermore, Meralco is exceeding standards set by the Energy Regulatory Commission and consistently showing improvements in system loss, achieving among the lowest rates nationwide.

Citing a report from the Independent Energy Consultants, MAP said Meralco’s distribution rates are reasonable.

“Notably, when adjusted for inflation, the average electricity rate has even decreased since the implementation of the EPIRA. This focus on efficiency translates to cost savings for consumers,” MAP said.

Meralco has achieved almost 100 percent electrification within its franchise area and also offers a discount range of 20 percent to 100 percent for the poorest customers.

Beyond its own service area, the power distributor is supporting fellow utilities, particularly electric cooperatives during natural disasters, helping strengthen the overall resilience of the Philippine power grid.

The power distributor is also working with the government, providing support to initiatives like the Build Build Build Program and public-private partnerships.

“In conclusion, we urge the House of Representatives Committee on Legislative Franchises to favorably consider Meralco’s positive impact and approve its franchise renewal, thereby ensuring stability in the power sector and ultimately serving the best interests of the Filipino people and the Philippine economy,” MAP said.