MBC supports Meralco franchise renewal

MANILA, Philippines — The Makati Business Club (MBC) has joined the calls for the renewal of the franchise of Manila Electric Co. (Meralco) to ensure access to reliable electricity.

“The MBC respectfully recommends the renewal of Meralco’s franchise,” the group said in a statement.

With Meralco being the country’s largest private distribution utility, MBC said the company is seen to play a pivotal role in ensuring reliable and accessible electricity for households and businesses in the country’s key economic regions.

Meralco’s franchise area covers the National Capital Region (NCR), Bulacan, Cavite, Rizal and select areas in Pampanga, Laguna, Batangas and Quezon.

NCR contributes 41.4 percent of the services sector’s economic performance, while CALABARZON’s (Cavite-Laguna-Batangas-Rizal-Quezon) share is at 10.8 percent and Central Luzon’s is at 8.3 percent.

In the industrial sector, CALABARZON contributes 25 percent, while NCR’s share is at 18.6 percent and Central Luzon at 16 percent.

MBC said these figures highlight the importance of Meralco’s services in powering the country’s economic activity and growth.

While the group recognizes the concerns on high electricity prices in the Philippines compared to its Southeast Asian neighbors, MBC said it is important to note that the country boasts a liberalized energy market without government subsidies.

Citing a 2023 report by the International Energy Consultants, MBC said Meralco’s distribution rates remain fair and reasonable, given the prevailing inflation.

MBC also said Meralco has achieved near-universal electrification within its franchise area and has consistently been able to address growing demand.

“Moreover, a renewed franchise for Meralco aligns with government objectives to enhance energy security, resilience and sustainability,” MBC said.

For the business group, Meralco has also demonstrated its commitment to promote renewable energy and implemented programs to help customers shift to cleaner power sources.

“Given the significant role played by Meralco in serving households and critical sectors such as services and industry, we urge your office to prioritize reliable energy provision to sustain economic growth and attract investments,” MBC said.

It said it also recognizes the need for targeted adjustments where necessary.

“Secure, affordable and renewable power is a key advocacy of MBC. It is essential for big and small businesses – including new investors – to grow and create jobs,” the group said.

Earlier, the Management Association of the Philippines said it is backing the renewal of Meralco’s franchise to ensure reliable electricity to support the economy.