Two lawmakers voiced support for a proposal to review and split into three the franchise that Congress had given Meralco which has been described as “too big.”
The proposal, first made by Laguna Rep. Dan Fernandez in a privilege speech, urged the House of Representatives to conduct a review of the mega-franchise and divide it into three Solons as its sheer size is already leading to poor service and alleged abuses.
In a manifestation that followed Fernandez’s speech last Nov. 7, Laguna Rep. Ann Matibag said consistently high power rates are among the reasons that the Philippines is failing to attract foreign investors that would boost the economy.
Added to high costs is the failure to assure a stable supply of power that is turning off potential investors, Matibag said.
She said these were borne by the emergence of Meralco, largely because of the Electric Power Industry Reform Act (Epira) of 2001 which allowed the utility to continue its “monopolistic practices.”
During the interpellation, ACT Teacher Rep. France Castro, for her part, said she supports Fernandez’s calls to review Meralco’s franchise. She also voiced support to having an inquiry by the House on ERC’s failure to regulate Meralco and determine the source of lapses in power distribution.
Matibag urged her fellow legislators at the House of Representatives to support Fernandez’s proposed resolution.
Fernandez earlier said Meralco now controls at least 70 percent of Luzon’s electricity output and that it is able to also manipulate the operations of power producers and sellers. Meralco had denied this, saying it was not factual.
Meralco said it complies with all government regulations and said Fernandez’s speech contained factual errors and was “riddled with inconsistencies.” It also denied behaving as a monopoly.
Meralco vice president and head of corporate communications Joe Zaldarriaga also stressed that Meralco complies with all government regulations.