Meralco bags House approval for franchise renewal

Once signed by the Philippine president, the company will be granted 25 years.

Manila Electric Company’s (Meralco) bid to extend its franchise for another 25 years has been approved by the Philippine government’s House of Representatives.

Lawmakers approved House Bill No. 10926 on third and final reading on 6 November.

Meralco’s franchise covers the construction, operation and maintenance of a distribution system for the conveyance of electric power to end-users in parts of Luzon.

It shall maintain a listing and offer to Filipino citizens at least 30% of its outstanding capital stock. Otherwise, the company’s franchise will be revoked.

Also amongst Meralco’s duties under the bill is the submission of an annual report of its finance and operations to the Philippine Congress. This should include updates on rollout, development, operation, and/or expansion of the business, financial statements, amongst others.

The bill will be sent to the Philippine Senate for deliberation before it is transmitted to the Philippine president for signing.