The call to split the Meralco franchise area is counterproductive and should be stopped, a trade group said yesterday.

In a statement, the Federation of Philippine Industries, or FPI, said a radical shift in the policy on electricity distribution may affect investor confidence.

FPI chairperson Jesus "Jess" Arranza called on the national leadership to step in and stop what he termed a "brazen attack on a legitimate business enterprise," adding that it is sending "shivers through the whole business community."

Meanwhile, the Energy Regulatory Commission or ERC may consider the recommendations of a former commissioner in the recomputation of the Weighted Average Cost of Capital or WACC, which is a determinant of the mandated profit limit of Meralco as a utility firm.

In a text message, ERC Chairperson and CEO Monalisa Dimalanta confirmed that her office had received a copy of the simulation computed by former ERC commissioner Alfredo Non, which concluded that the amount Meralco must refund its customers may have reached P150 billion.

"It was submitted as part of the Motion for Reconsideration in the case, so we will resolve it as part of the case," Dimalanta said.

 Arranza said while FPI is still trying to solve the serious impact of the recent law on Expanded Producer Responsibility, or EPR, wherein the waste management duty of the government agencies concerned, who miserably failed in this duty for decades, is being transferred to the manufacturers and producers.

Businesses have been taxed for this purpose. The FPI said it is relentlessly fighting smuggling and other illicit trade activities to protect the government's needed revenues, where tax leakages run up to more than P200 billion annually.

"Government moves on Meralco's franchise will definitely dampen foreign investments due to changing economic policies and will gravely affect the serious efforts of President Ferdinand Marcos Jr. in his foreign missions precisely to attract investments," Arranza said. 

After the Vietnam War, Arranza recalled that the government had difficulty inviting foreign investors because of the unstable economic policies.