The Laban Konsyumer Inc. (LKI) has voiced its support for the franchise renewal of Manila Electric Co. (Meralco), stressing that the power distributor’s continued operation is crucial for the welfare of millions of consumers who depend on its stable and reliable supply of electricity.
LKI lauded Meralco’s efforts to secure sufficient and least-cost supply through the conduct of a series of biddings called competitive selection process (CSP).
Currently, it is in the process of getting bids for its 1,500-MW supply requirements starting next year.
“Meralco’s conduct of open and transparent biddings illustrates the company’s efforts to fulfill its ultimate mandate to its customers,” LKI said.
Earlier this year, Meralco also awarded supply contracts for 3,000-MW baseload supply for 15 years and for its 400-MW interim power supply requirement until next year.
“We strongly support Meralco’s series of CSPs. Power contracts secured through CSP ensure supply will come from reputable and reliable sources, which help ensure stable and affordable electricity supply for consumers in the years to come,” it added.
In the recent increase of power rates in July bills, Meralco’s adjustment was lower compared to many jurisdictions. Its current overall rates for a typical residential customer at P11.60/kWh is much more competitive compared to the costs of other private distributors and electric cooperatives, some of which go as high as P16 to 21/kWh.
The consumer group argued that non-renewal of its franchise due to vested interests would disrupt vital electricity service and have severe consequences for households, businesses, and the entire economy.
While the consumer group acknowledged that Meralco faces operational issues that need to be addressed, these concerns should not be used as a pretext to endanger electricity supply.
Instead, LKI called on authorities to consider the broader implications of not renewing Meralco’s franchise by prioritizing the stability of the electricity supply and resolving issues constructively while protecting consumer interests.
LKI concluded by saying Meralco’s continued operations ensure the consistent flow of stable electricity to millions of consumers not just in Metro Manila but also in other high-growth areas.