MGEN refutes SPBC exposure claim
Critics claimed it might lead to market distortions, higher costs for consumers, or conflicts with established franchises.
Daily TribuneCritics claimed it might lead to market distortions, higher costs for consumers, or conflicts with established franchises.
Meralco PowerGen Corp. (MGEN) is not involved in Solar Para Sa Bayan Corporation (SPBC), which it indicated was separate from its energy partner SP New Energy Corp. (SPNEC).
MGEN said it did not acquire any share in SPBC, which was awarded a congressional franchise through Republic Act 11357 to construct and install and operate microgrids in remote areas.
The franchise for SPBC was highly contentious. Major power industry groups, including stakeholders under the Electric Power Industry Reform Act (EPIRA), opposed the bill, arguing it could undermine competition by granting SPBC broad powers to operate in areas that could overlap with existing electric cooperatives or distribution utilities.
Distortions raised
Critics claimed it might lead to market distortions, higher costs for consumers, or conflicts with established franchises. Despite this, the law was passed, with proponents highlighting its potential to electrify remote communities using solar technology.
MGEN added it is not privy to any transactions of SPBC nor to any circumstances that may relate to its compliance with its franchise.
MGEN’s investment in SPNEC did not violate any law or regulation, it added.
As a publicly-listed entity, the transactions of SPNEC, including the entry of MGEN through its affiliates, have been scrutinized and approved by the Philippine Stock Exchange and the Securities and Exchange Commission.
In addition, SPNEC’s business or operations is not dependent on SPBC’s franchise.
“We hope this clarifies the issue and lays to rest the disinformation coming out especially in social media,” Christer Gaudiano, MGEN head for Sustainability, Corporate Communications and External Affairs, said.