Hard work begins
Velasco said in the explanatory note of his bill that ‘Meralco has been providing reliable and world-class electric service at fair and reasonable prices to its customers.’
Daily TribuneVelasco said in the explanatory note of his bill that ‘Meralco has been providing reliable and world-class electric service at fair and reasonable prices to its customers.’
Three years from now, the franchise of dominant electricity distributor Manila Electric Co. (Meralco) will lapse and a bill has been filed seeking to extend it for 25 years or up to 2053. Thus, the work starts as early as today.
At the moment, members of the House of Representatives are deliberating on the bill with the bandwagon supporting the franchise extension.
Former Speaker, Marinduque Rep. Lord Allan Jay Velasco, has joined the extension push through the filing of House Bill 10317.
The head of the Committee on Energy said a franchise renewal would benefit Filipino consumers in terms of stable and reliable electricity in the service areas that span the cities and municipalities of Metro Manila, Bulacan, Cavite, Rizal, and select areas in Batangas, Laguna, Quezon and Pampanga.
Velasco said in the explanatory note of his bill that “Meralco has been providing reliable and world-class electric service at fair and reasonable prices to its customers.”
“Renewal of the franchise will ensure the continuous and uninterrupted supply and distribution of quality and reliable electric service to the customers within the franchise area of Meralco,” he added.
In the Electric Power Industry Reform Act of 2001, the goal of all the efforts to reform the industry is so simple and is embodied in three words — “least electricity cost.”
As plain and obvious as this is, achieving the goal is not a bed of roses.
Meralco has met all the qualifications for a legislative franchise renewal and has consistently observed the rules and regulations governing its operations, according to Velasco.
“Meralco provides the most reliable electricity service that has been instrumental in driving economic growth,” the lawmaker added.
In terms of service quality and reliability, Meralco far exceeds the service offered by other power utilities and cooperatives in the country which are hounded by problems.
Meralco introduced the straight pricing scheme in power contracts that halted pass-through costs, which was a game changer in ensuring that generating companies would indeed provide the lowest power cost.
This was, however, challenged by the court that overturned an Energy Regulatory Commission (ERC) ruling that should have protected the scheme.
“The fact that there are calls from communities serviced by electric cooperatives to transfer to Meralco further proves that the company offers much-needed reliable electricity service,” Velasco said.
Committee on Energy Vice Chairman Dan Fernandez also recognized Meralco’s contribution to the economy, although he raised issues about Meralco’s operations, which the distribution utility has since responded to and clarified.
“Meralco says there’s light in life but in reality, Meralco hid in the dark the abuses against consumer rights,” Fernandez said at a hearing of the House Committee on Legislative Franchise last Monday.
Current power rates are high, according to Fernandez, mainly as a result of the abrupt termination of Meralco power supply agreements (PSA) if the terms did not suit it.
The distribution utility last January contracted for 1,800 megawatts of supply with the same company it had earlier canceled its contract with. The new contract was at rates higher than on the PSA that was terminated.
During questioning at the House hearing, Meralco representatives said the acquisition of supply from the same company that terminated its previous PSA was allowed by law.
Earlier, House Committee on Ways and Means Chairperson Albay Rep. Joey Salceda, who filed House Bill 9793 for Meralco’s franchise renewal, said a franchise extension would be “good for the economy.”
“The case for renewing Meralco’s franchise is plain and simple: it has complied with the conditions of the franchise law and it is good for the economy and the consumer,” Salceda said.
He said that if other electricity distributors performed like Meralco, the economy would create an additional P201 billion in gross value annually from avoiding outages.
However, the vice chairman of the House Committee on Energy expressed vehement opposition to the bill that would extend the legislative franchise of Meralco that is expiring in 2028.
Sta. Rosa City Rep. Dan Fernandez said questionable actions by Meralco have led to high power rates and abuses against consumers.
