‘Meralco franchise could be cancelled for failure to submit regulatory reports’

SURIGAO Del Sur Rep. Johnny Pimentel said the cancellation of Manila Electric Co’s (Meralco) franchise loomed as the utility failed to submit annual financial and operation reports required by the law–Republic Act 9209—which granted the franchise.

Pimentel said records showed that Meralco submitted reports only for 2018 to 2022.

“The financial report is different,” Pimentel said during a recent public hearing conducted by the House Committee on Legislative Franchises on the privilege speech of Laguna Rep. Dan Fernandez, who called for the split of Meralco’s mega-franchise for allegedly overcharging its customers and violating its franchise granted by Congress.

“If you did not submit your reportorial requirement for these years, then well, basically, you have already violated Section 14 of Republic Act 9209,” Pimentel said.

Non-compliance with the law is a ground for franchise cancellation or revocation per Republic Act 9209, or “An Act Granting The Manila Electric Company A Franchise To Construct, Operate And Maintain A Distribution System For The Conveyance Of Electric Power To The End-Users In The Cities/Municipalities Of Metro Manila, Bulacan, Cavite And Rizal, And Certain Cities/Municipalities/Barangays In Batangas, Laguna, Quezon And Pampanga.”

“It is very clear in Republic Act 9209 that the submission of reports should be done every year. Now as stated by the ComSec (Committee Secretariat), they submitted only for several years,” he said.

A check of the records showed that Meralco complied with the reporting requirement only seven times since getting its franchise in 2003.

As Meralco’s franchise is already 20 years old, Pimentel said a total of 20 reports should have been submitted as required by the law.

“For the record, you have submitted only seven reports,” Pimentel said.

Meralco representatives said they would try to reconcile the records.

Fernandez has urged Congress to split the mega-franchise of Meralco into three, accusing the monopolistic utility of failing to serve the interest of 7.6 million subscribers and overcharging them for the last nine years.

In a privilege speech last month, Fernandez said since Meralco has grown too big and dominant in the power industry, a review of its franchise to pave the way for its split into three was timely