Consumer Rights Advocate Urges Senate to Curb Meralco's Market Power in Franchise Renewal

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Meralco,Franchise,Market Power

Romeo Junia, a consumer rights advocate, has written to Senate President Francis Escudero urging the Senate to amend House Bill 10926, which grants Meralco a fresh 25-year franchise, by including provisions that would limit the company's market power.

The Senate has been urged to amend House Bill 10926, which grants Meralco a fresh 25-year franchise, by including provisions that would limit what a consumer rights advocate termed the company's 'apparent abuse of market power.

' Consumer rights advocate Romeo Junia wrote to Senate President Francis 'Chiz' Escudero, expressing concern about the bill's current form, stating that it 'will simply continue Meralco's ability to abuse its dominant position as distribution utility and energy player in the country.'\Junia warned that the Philippines would 'maintain its dubious record of having the highest electricity costs in Southeast Asia; power costs will likely increase even further if nothing is done to curtail Meralco's apparent abuse of market power.' He emphasized that franchise renewal would be a 'very rare occasion where Congress can put limits on Meralco's power.'\While Congress has enacted laws and bills to enhance energy sector regulations, such as the Electric Power Industry Reform Act of 2001, the Renewable Energy Act of 2008, and the proposed Philippine Natural Gas Industry Development Act, Junia asserted that Meralco is 'disincentivized' to implement these measures. He urged that language be included in the final Meralco franchise law, if renewed, to 'unequivocally show the intent of Congress to draw the clear lines that Meralco cannot cross, even with and especially from its dominant position in the industry.

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