Meralco's dominant presence in the electricity sector has been assailed yesterday as a House member seeks an anti-trust action that will break the power utility into three companies.

Santa Rosa City lone district Rep. Dan Fernandez urged Congress to split the mega-franchise of Manila Electric Company, or Meralco, into three, accusing the monopolistic utility of failing to serve the interest of 7.6 million subscribers including his allegations that the company overcharged electricity users in the last nine years.

In a privilege speech, Fernandez said since Meralco has grown too big and dominant in the power industry, a review of its franchise to pave the way for its split into three was timely.

"It's high time we renew its franchise to pave the way for the split of the mega-franchise we granted Meralco," said Fernandez in the speech.

"If possible, we can split it into three franchises since Meralco actually operates in three sectors in Luzon — NCR (National Capital Region), South Luzon (Calabarzon) and North Luzon sector of Pampanga and Bulacan," he added.

In his speech, the Laguna lawmaker also said Meralco now controls at least 70 percent of Luzon's electricity output that it is able to also manipulate the operations of power producers and sellers.

Dominant presence

"They control the whole of Metro Manila, NCR, they control the whole of Calabarzon, including my province, Laguna," Fernandez said.

Because the franchise is too big, Fernandez said Meralco has already, in effect, divided it up to be able to manage it.

"They control Pampanga and Bulacan," Fernandez said.

"Meralco is so huge and enormous that they have subdivided the whole franchise. They have subdivided (it) into the central, southern and northern sector," the lawmaker added.

Since Meralco's franchise has grown so huge, the company can even "configurately" operate the Bohol franchise in the Visayas if it wanted to.