In a significant move for the Philippine energy sector, President Ferdinand “Bongbong” Marcos Jr. has officially approved the 25-year extension of the franchise granted to the Manila Electric Company (Meralco), the country’s largest power distributor.
The confirmation came from Executive Secretary Lucas Bersamin, who clarified that the law did not lapse into effect but was actively signed by the President on April 11, 2025.
Long-Term Commitment to Energy Reliability and Innovation
With this newly extended franchise, Meralco is poised to continue serving millions of Filipino households and businesses until 2050. The renewal strengthens the company’s role in ensuring a stable, affordable, and reliable electricity supply across its coverage area.
In a statement, Meralco Chairman Manuel V. Pangilinan emphasized that the renewed franchise is a testament to a shared goal between the public and private sectors—enhancing the country’s power infrastructure.
“This extension allows us to carry out long-term projects, strengthen our distribution systems against climate threats, and integrate innovations that will boost operational efficiency and customer satisfaction,” Pangilinan said.
He also expressed gratitude to President Marcos for his support, noting that the move represents a unified direction toward energy security and national development.
Support from Key Industry Groups
The renewal received endorsements from several major business organizations, including:
- The Federation of Philippine Industries (FPI)
- The American Chamber of Commerce of the Philippines
- The British Chamber of Commerce of the Philippines
- The Japanese Chamber of Commerce and Industry of the Philippines
These groups underscored Meralco’s importance in sustaining economic growth through consistent power delivery.
Consumer Concerns on Timing
Despite the backing, the early approval has sparked criticism from some consumer advocacy groups. The People for Power (P4P) coalition and the United Filipino Consumers and Commuters (UFCC) argued that renewing the franchise four years before its 2028 expiration limits the government’s leverage to push for reforms and consumer protections.
According to P4P convenor Gerry Arances, such early action removes a vital opportunity to review Meralco’s performance and accountability mechanisms.
Legislative Milestones
The bill granting Meralco’s 25-year extension successfully passed both chambers of Congress, with the House approving the measure in August 2024, followed by the Senate’s ratification in February 2025.
Key Takeaways:
- Meralco’s franchise is extended until 2050.
- President Marcos signed the law on April 11, 2025.
- The extension paves the way for modernization and energy infrastructure projects.
- Business sectors support the move, but some consumer groups call the early renewal “premature.”
- Debate continues on balancing long-term investment with consumer accountability.