President Ferdinand Marcos Jr. has signed into law the 25-year franchise renewal of the Manila Electric Company (Meralco), enabling it to continue operations in Metro Manila and adjacent provinces.
Under Republic Act No. 12146, signed on April 11, Meralco retains its authority to construct, operate, and maintain its electricity distribution system across Metro Manila, Bulacan, Cavite, Rizal, and parts of Batangas, Laguna, Quezon, and Pampanga.
The law mandates the company to uphold reliable, efficient, and inclusive power delivery following the standards set by the Department of Energy (DOE) and the Energy Regulatory Commission (ERC).
Among these including providing detailed billing transparency for its customers, including a breakdown of charges and implementation of a lifeline rate for those in the marginalized sector.
A consumer affairs office must also be established to handle complaints, and services must be accessible through electronic and digital platforms. To enhance corporate governance, at least 20% of Meralco’s board must consist of independent directors.
The company is further tasked with filing an annual Corporate Social Responsibility (CSR) report that includes efforts to electrify underserved areas, such as remote schools, health centers, and communities affected by calamities.
Government oversight provisions in RA 12146 authorize the state to temporarily take control of Meralco’s operations during national emergencies. It also grants the company the right of eminent domain to build and maintain infrastructure, with a requirement for just compensation.
The franchise can be revoked if Meralco fails to operate for two consecutive years. Unauthorized transfer or sale of the franchise is prohibited, and at least 30% of Meralco’s capital stock must be owned by Filipino citizens.
Meralco is also obligated to submit annual operational and compliance reports to Congress by April 30, or face penalties of ₱1 million per working day of delay.
In support of clean energy and job creation, the company is required to promote renewable energy initiatives, including net-metering, and participate in employment programs like the Public Employment Service Office (PESO).
Albay Rep. Joey Salceda, principal author of the measure and chair of the House committee on ways and means, thanked President Marcos for swiftly approving the franchise.
Salceda highlighted Meralco’s commitment to invest ₱206 billion over five years to reduce system losses and support the rise of electric vehicles and future-facing industries like data centers.
He also noted a significant improvement in service reliability, with annual power interruptions dropping from 550 minutes in 2011 to just 123 minutes.
“Meralco has done good and promises to do better. This franchise will help ensure that happens,” Salceda said.