President Ferdinand R. Marcos Jr. has signed into law the early renewal of the Manila Electric Company’s (Meralco) legislative franchise, extending its authority to distribute electricity for another 25 years. The move, confirmed by Executive Secretary Lucas Bersamin, came ahead of the franchise’s original expiration in 2028 and was officially signed on April 11, 2025.
This early action is being viewed as a significant vote of confidence in Meralco’s role as the country’s largest electricity distribution utility, serving nearly 7.75 million customers across Metro Manila and several nearby provinces.
Meralco Chairman and CEO Manuel V. Pangilinan hailed the franchise renewal as a “recognition of our role in helping power the nation’s growth.” He expressed gratitude to President Marcos and Congress for their decisive support, noting that the extension enables the company to pursue major long-term infrastructure and modernization projects.
“This development fortifies our commitment to deliver stable, reliable, and affordable electricity to millions of Filipinos,” Pangilinan said. “With a renewed mandate, we are in a strong position to invest in advanced technologies, improve customer experience, and boost energy access in underserved areas.”
Among the key benefits anticipated from the renewal are:
- Resilient power infrastructure to better withstand climate-related disruptions
- Smarter grid systems and digitized services for improved customer engagement
- Expanded energy access in developing and remote communities
- Greater energy efficiency, which could help lower electricity costs over time
These initiatives support broader national goals of energy independence, economic development, and climate resilience.
Controversies and regulatory scrutiny
Despite the optimistic outlook, the franchise renewal was not without contention. Critics questioned the timing of the extension, especially amid unresolved concerns about Meralco’s pricing practices and corporate partnerships.
In March 2025, the Energy Regulatory Commission (ERC) ordered Meralco to refund P19.95 billion to customers due to “over-recovery” of rates from July 2022 to December 2024. In Congress, Senator Risa Hontiveros cast the lone dissenting vote during Senate deliberations, arguing that Meralco should first resolve these issues before being granted a fresh franchise.
Further scrutiny was raised by consumer group Power 4 People (P4P) Coalition regarding Meralco’s $3.3-billion partnership with AboitizPower and San Miguel Corporation. The coalition claims that the deal may violate legal ownership limits, calling on the ERC to investigate whether Meralco has exceeded the 50% cross-ownership threshold under existing laws.
A deliberate and timely decision
Despite the debates, lawmakers maintained that early renewal is standard practice for major utilities. Parañaque City 2nd District Representative Gus Tambunting emphasized that franchise discussions typically begin five years prior to expiration to ensure uninterrupted service and long-term planning.
With both the Senate and House approving the measure and President Marcos signing it into law ahead of schedule, the renewed franchise secures Meralco’s continued role in powering Philippine households, industries, and economic ambitions.
“The renewal reflects a shared effort to ensure that Meralco continues to meet the evolving needs of consumers through innovation, operational excellence, and dependable service,” Pangilinan said.
As the Philippines grapples with rising energy demand and climate-related challenges, the early renewal of Meralco’s franchise signals a commitment to continuity, investment, and national development—though not without a call for greater accountability.