Senate OKs fresh 25-year franchise for Meralco

The Senate on Monday approved on third and final reading the bill renewing the franchise of the Manila Electric Company (Meralco) for another 25 years.

House Bill 10926 was approved with 18-1-0 votes. Senate Deputy Minority Leader Risa Hontiveros voted against the measure's passage.

Senator Joel Villanueva, who sponsored the measure, said the bill not only renews Meralco's franchise "but also strengthens our country's energy security and consumer rights."

In her explanation of the vote, Hontiveros said that Meralco has "failed to abide by its obligations and serve consumers as reflected by [the] excessively high electricity bills."

She cited the amendments that she proposed which were rejected, saying these proposals were just "the bare minimum needed to guarantee fair and transparent operations, and would have ensured that the refunds are calculated well, transparent, and open to public scrutiny."

Among her amendments that were rejected were the independent financial audit by the Commission on Audit (COA), the publication of rate setting rules, and the definition and limitation of the Regulatory Asset Base.

"We should not reward Meralco’s misdeeds with a brand new legislative franchise, a few years before its existing one expires... Isoli muna nila ang bilyon-bilyong sobrang kinulekta nila sa taumbayan," she said.

Under the Senate version of the bill, Meralco is mandated to uphold its commitment to the protection of consumer rights; ensure the efficient and reliable delivery of electric power services; and adhere to competitive market principles. —LDF, GMA Integrated News