More lawmakers have expressed opposition to the early renewal of the franchise that Congress has given to the power distribution utility Manila Electric Company (Meralco).
Some legislators have filed bills to renew the utility’s franchise four years ahead of its expiration in 2028.
Among those who joined the opposition to the move was Surigao del Sur Rep. Johnny Pimentel, vice chair of the House legislative franchise committee, which is currently discussing Meralco’s renewal bid.
Pimentel echoed the appeal made previously by a colleague, Sta Rosa City Rep. Dan Fernandez, for the House to carefully review the Meralco franchise before acting on it.
Pimentel said he agreed that the power distribution giant should first answer the issues presented to the committee against the utility’s practices.
At a hearing of the committee on Monday, Pimentel raised questions about Meralco’s change of ownership from the Lopez clan to the group of billionaire Manuel V. Pangilinan.
The ownership change took place in 2009 yet but 25 years later, Congress has not been formally informed of the process. The law granting the Meralco franchise passed by Congress was for the Lopez company.
“Did you seek permission from Congress for the change of ownership?” Pimentel asked Meralco representatives at the hearing.
Lawyer Ray Espinosa, Meralco director, said there was “no change in controlling interests” which meant no approval was needed from Congress.
Pimentel said he deemed the failure to ask Congress permission as “illegal.” He said the situation is similar to that of Sonshine Media Network Inc. (SMNI) which also failed to declare to Congress its change of ownership.
