Makati Business Club Backs Meralco Franchise Renewal for Reliable Energy Provision

The Makati Business Club (MBC) has formally recommended the renewal of Manila Electric Company's (Meralco) franchise, underscoring its vital role in providing reliable electricity to households and businesses in the National Capital Region (NCR) and surrounding areas.

Meralco is the largest private distribution utility in the Philippines, covering the NCR, Bulacan, Cavite, Rizal, and select areas in Pampanga, Laguna, Batangas, and Quezon. The NCR alone contributes 41.4% to the services sector's economic performance, while CALABARZON and Central Luzon contribute 10.8% and 8.3%, respectively.

In the industrial sector, CALABARZON contributes 25.0%, with NCR at 18.6% and Central Luzon at 16.0%. The MBC highlighted that Meralco's services are critical for driving economic activity and growth in these regions.

A 2023 report by the International Energy Consultants found that Meralco's distribution rates remain fair and reasonable, given prevailing inflation rates. Despite high electricity prices in the Philippines compared to other ASEAN nations, the country has a liberalized energy market without government subsidies.

Reliable electricity provision is essential for economic growth and development, as it powers businesses and industries that drive national progress. If Meralco's franchise is not renewed, it could lead to power outages and disruptions that would negatively impact the economy and daily life.

Meralco has achieved near-universal electrification within its franchise area and has consistently met growing demand. The company has also shown a commitment to promoting renewable energy and has implemented programs to help customers transition to cleaner power sources.

The MBC emphasized the importance of secure, affordable, and renewable power for businesses to grow and create jobs. The Club stated, "We therefore endorse the renewal of Meralco's energy franchise, while also recognizing the need for targeted adjustments where necessary."

The Department of Energy has directed Meralco to enroll more participants under the Interruptible Load Program (ILP) to alleviate strain on the power grid. Meralco has intensified its campaign to boost available capacity under the program, securing commitments from Pioneer Float Glass Manufacturing Inc. and Anglo Watsons Glass Inc. to deload a total of 4.3 megawatts (MW) of capacity.

Meralco Vice President Ma. Cecilia M. Domingo stated, "These commitments reflect our shared dedication to alleviating strain on the power grid, benefiting thousands of small businesses and households by minimizing rotational power interruptions, and thereby leading to a more reliable supply."

The MBC's support for Meralco's franchise renewal aligns with government objectives to enhance energy security, resilience, and sustainability. The Club remains committed to supporting initiatives that promote economic development and enhance the nation's welfare.

By endorsing Meralco's franchise renewal, the Makati Business Club aims to ensure reliable and accessible electricity for households and businesses in key economic areas, driving economic growth and development in the country.

Key Takeaways

• Makati Business Club endorses Meralco's franchise renewal for reliable electricity supply.
• Meralco serves 41.4% of the services sector's economic performance in NCR and surrounding areas.
• Meralco's distribution rates are fair and reasonable despite high electricity prices in the Philippines.
• Reliable electricity provision is essential for economic growth and development.
• Meralco promotes renewable energy and has achieved near-universal electrification in its franchise area.