MBC supports Meralco’s franchise renewal

MBC supports Meralco’s franchise renewal | Daily Tribune

The Makati Business Club is recommending the renewal of Manila Electric Company’s (Meralco) franchise.

Meralco is the largest private distribution utility in the country; its network plays a pivotal role in ensuring reliable and accessible electricity for households and businesses in the country’s key economic regions.

The franchise area covers the National Capital Region, Bulacan, Cavite, Rizal and select areas in Pampanga, Laguna, Batangas and Quezon.

The National Capital Region (NCR) contributes 41.4 percent of the services sector’s economic performance, with CALABARZON at 10.8 percent and Central Luzon at 8.3 percent.

For the industrial sector, CALABARZON contributes 25.0 percent, with NCR at 18.6 percent and Central Luzon at 16.0 percent.

Critical importance

These figures underscore the critical importance of Meralco’s services in driving economic activity and growth in the country.

The MBC acknowledge concerns about electricity prices in the country, which are comparatively high among ASEAN nations. However, the Club said, it is important to note that the Philippines boasts a liberalized energy market, devoid of government subsidies.

In this context, a 2023 report by the International Energy Consultants has shown that Meralcos distribution rates remain fair and reasonable, particularly given prevailing inflation rates.

Since its initial franchise, Meralco has achieved near-universal electrification within its franchise area and has consistently met growing demand.

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

Renewable energy promotion

Meralco has demonstrated its commitment to promoting renewable energy and has implemented programs to assist customers in transitioning to cleaner power sources.

Given the significant role played by Meralco in serving households and critical sectors such as services and industry, the MBC is urging the prioritization of reliable energy provision to sustain economic growth and attract investments.

The MBC is thus endorsing the renewal of Meralco’s energy franchise, while also recognizing the need for targeted adjustments where necessary.

In a statement, the MBC stressed that secure, affordable, and renewable power is one of the Club’s key advocacies. “It is essential for big and small businesses — including new investors — to grow and create jobs. We remain committed to supporting initiatives that foster economic development and enhance the welfare of our nation,” the MBC said.