“The company has already demonstrated its ability to bring progress wherever it goes.”
As climate change intensifies, the Philippines finds itself facing more frequent and devastating typhoons. As we’ve seen, these storms have become stronger over time, wreaking havoc on the country’s infrastructure and livelihoods, especially in rural areas.
Since these regions are among the most vulnerable, they suffer from prolonged power outages and disruptions.
In fact, according to 2022 study by the Philippine Institute for Development Studies (PIDS), natural disasters like typhoons are among the top causes of power interruption in the country.
It noted that major storms, earthquakes, and lightning had cost the country 107.4 million consumer-hours in 2021, which jumped by 10 percent from 97.2 million consumer-hours in 2015.
The need for reliable and sustainable electricity has never been more critical, especially in the countryside, whose constituents are longing to have the same level of power and energy infrastructure as urban centers.
Given that the Philippines is typhoon-prone, PIDS recommended that climate-proofing the country’s electricity infrastructure will help address power outages and avoid the high socioeconomic cost.
This very well aligns with the government’s push to improve power delivery and distribution to ensure energy security.
Energy security is not only vital to the daily lives of Filipinos but also critical in attracting foreign investments, which are necessary to sustain the country’s growth and development. This is why energy security is a top priority of the Marcos Jr. administration’s socio-economic agenda.
Reliable electricity is not just a convenience; it is needed for economic growth, investment, and the improvement of living standards. Without stable power supply, any progress made in rural development can be undone by a single typhoon.
Climate-proofing power infrastructure and continually improving power distribution facilities, however, will require massive capital in order to make this happen.
In this context, Meralco emerges as a key player in powering up progress in the Philippines. It has provided consistent and the least cost supply of electricity, which is a primary concern for Filipinos and potential investors.
Recently, the House of Representatives has approved Meralco’s franchise renewal on second reading. This is a welcome development.
Renewing Meralco’s franchise for another 25 years is not just a matter of extending a business contract; it is about ensuring the progress and stability of the top GNP contributor regions of the country.
Meralco, as the country’s largest and most established distribution utility, has a proven track record of delivering efficient, reliable service not only within Metro Manila but also in the provinces that have experienced growth since it began servicing them.
Even beyond its mandate, Meralco has been very pro-active during calamities. According to House Committee on Legislative Franchise Chairperson and Parañaque City Rep. Gus Tambunting, Meralco contributed to the restoration efforts after typhoons such as Pablo in 2012, Yolanda in 2013, Odette and Egay in 2023.
“Meralco has consistently provided aid to areas outside its franchise affected by natural disasters, sharing expertise and resources with other distribution utilities,” he said.
While other distribution utilities may provide reliable service, Meralco has the advantage of scale ang innovation, allowing it to offer electricity service in the fastest and most cost-effective manner.
Its advanced infrastructure and economies of scale allow it to offer the most efficient solutions for energy distribution, which can be shared with electric cooperatives (ECs) across the country to help make electricity distribution more efficient and effective nationwide.
As Albay Rep. Joey Salceda said in his sponsorship speech, Meralco has met and continues to deliver its mandate—the least cost mandate, efficiency mandate, reasonable price mandate, open and non-discriminatory access mandate, and the anti-market abuse mandate.
“Meralco’s mandates under its current franchise were clear. It has met these mandates; hence, it’s franchise merits renewal,” the lawmaker said.
As the Philippines continues to develop, ensuring reliable and affordable power supply becomes even more critical. Meralco has already demonstrated its ability to bring progress wherever it goes, helping communities thrive through reliable power.
It is clear that the road to national growth—especially in the countryside—relies on adequate, efficient, and reliable electricity.
Granting Meralco an extended franchise bolsters confidence to drive sustained growth for both the direct and linked industries and consumers within and beyond its franchise areas.
Perhaps it is time for Meralco to help other ailing areas outside of its franchise. By doing so, it can light up new opportunities and help accelerate the expansion of inclusive prosperity.
