The bill seeking a fresh 25-year franchise for the Manila Electric Company (Meralco) is expected to “sail smoothly” through the House of Representatives, according to Albay 2nd District Rep. Joey Salceda.

Salceda’s statement came a day after the bill was approved at the committee level. He characterized Meralco as “an exemplar of how service reliability can create economic growth and development.”

On Monday, the House Committee on Legislative Franchises voted to approve the consolidated bills granting Meralco a new franchise to distribute electricity in an area that accounts for more than half of the country’s gross domestic product (GDP).

Committee chairman and Parañaque Rep. Gustavo Tambunting informed committee members that the renewal of Meralco’s franchise has garnered significant support not only from legislators but also from various business organizations.

“For the past few months we have held meetings to discuss the franchise application of Meralco. Since then, we have received various letters of support,” said Tambunting, identifying nearly two dozen business groups, including industry federations and the Japanese and British Chambers of Commerce.

Salceda, who filed one of the initial bills for the renewal of Meralco’s franchise, welcomed the committee’s decision and thanked Tambunting for the “fair and extensive evaluation” of the proposed extension.

Salceda noted that the company is fully compliant with the Energy Regulatory Commission’s rules and issuances.

“The franchise is possibly the single most important private bill for industrial policy in this country. Meralco services an area responsible for about half the country’s entire GDP, and about 26 percent of the population,” said Salceda, who also chairs the House Committee on Ways and Means.

“I expect the franchise bill to sail smoothly through the floor. The role of the franchise review process in Congress is to see whether a grantee has complied with its mandates. In this regard, there can be little question. Meralco has fulfilled its end of the current franchise law,” he added.

He further noted that the company is fully compliant with the Energy Regulatory Commission’s (ERC) rules and issuances.

Citing data from the Philippine Statistics Authority and the ERC, Salceda said that some P204.29 billion in net gross value could be added to the economy if all electric cooperatives and distribution utilities performed like Meralco.

In addition to Salceda, Cagayan de Oro City Rep. Rufus Rodriguez, who chairs the House Committee on Constitutional Amendments, also filed a separate bills seeking to extend Meralco’s franchise by another 25 years when it expires in 2028.

Both lawmakers highlighted the reliable service provided by Meralco and its potential for expansion to other regions.