Meralco franchise renewal key to advancing

Meralco franchise renewal key to advancing | Daily Tribune

Laban Konsyumer Inc. (LKI) has endorsed the renewal of Manila Electric Co. (Meralco)'s franchise, highlighting that the power distributor’s ongoing operation is vital for the welfare of millions of consumers reliant on its stable and reliable electricity supply.

LKI also praised Meralco for its commitment to securing affordable and reliable power through its competitive selection process (CSP)

It is currently soliciting bids for its 1,500-MW supply needs, starting next year.

“Meralco’s conduct of open and transparent biddings illustrates the company’s efforts to fulfill its ultimate mandate to its customers,” LKI said.

Earlier this year, Meralco awarded contracts for a 15-year, 3,000-MW baseload supply and secured a 400-MW interim power supply for the coming year.

“We strongly support Meralco’s series of CSPs. Power contracts secured through CSP ensure supply will come from reputable and reliable sources, which help ensure stable and affordable electricity supply for consumers in the years to come,” the consumer group added.

In the recent increase in power rates for July bills, Meralco's adjustment was lower compared to many other jurisdictions. Its current overall rate of P11.60/kWh for a typical residential customer is significantly more competitive than the costs charged by other private distributors and electric cooperatives, which can range from P16 to P21/kWh.

The consumer group argued that non-renewal of its franchise due to vested interests would disrupt vital electricity service and have severe consequences for households, businesses, and the entire economy.

While the consumer group acknowledged that Meralco faces operational issues that need to be addressed, these concerns should not be used as a pretext to endanger electricity supply.

Instead, LKI urged authorities to consider the broader implications of not renewing Meralco’s franchise, emphasizing the need to prioritize the stability of the electricity supply, resolve issues constructively, and protect consumer interests.

LKI concluded by stating that Meralco’s continued operations ensure a consistent and stable electricity supply to millions of consumers, not only in Metro Manila but also in other high-growth areas.