Meralco Franchise Renewal Secures 25 More Years of Power

President Ferdinand “Bongbong” Marcos Jr. has signed into law the 25-year renewal of Manila Electric Co.’s (Meralco) franchise, clearing the way for the nation’s largest power distributor to implement long-term infrastructure and energy modernization plans.

Executive Secretary Lucas Bersamin confirmed Tuesday that the law was officially signed by the President on April 11, marking a pivotal development in the country’s efforts to enhance energy security and improve power delivery systems.

“Signed by the President, not lapsed into law,” Bersamin said in a statement.

Meralco Chairman and CEO Manuel V. Pangilinan hailed the renewal as a vote of confidence in the company’s continued role in powering the nation’s development.

“We welcome the renewal of Meralco’s franchise — a recognition of our role in helping power the nation’s growth,” Pangilinan said.

He thanked President Marcos and both houses of Congress for supporting the measure, noting the franchise extension reflects a “shared effort to ensure that Meralco continues to meet the evolving needs of consumers through innovation, operational excellence, and dependable service.”

The renewed franchise grants Meralco another 25 years to operate, following congressional approval — first by the House of Representatives in August 2024 and then by the Senate in February 2025.

Pangilinan emphasized that the new mandate will enable Meralco to implement long-term energy infrastructure projects that enhance electricity delivery to households, businesses, and industries.

“It also allows us to continue investing in the modernization and expansion of our distribution network — making it more resilient to climate-related disruptions — while introducing innovations that enhance efficiency and raise customer experience,” he said.

He added that the extended franchise “reinforces our common desire to attain substantial energy independence in the long run.”

The renewal comes amid growing demands for reliable and affordable electricity as the Philippines pursues digitalization, manufacturing expansion, and nationwide electrification efforts.

Business groups have thrown their support behind the franchise extension, including the Federation of Philippine Industries (FPI), the American Chamber of Commerce of the Philippines (AmCham), the British Chamber of Commerce of the Philippines (BCCP), and the Japanese Chamber of Commerce and Industry of the Philippines Inc. (JCCPI).

In a press statement, Pangilinan reiterated Meralco’s mission to support the government’s development agenda while remaining committed to transparency, regulatory compliance, and corporate social responsibility.

“Meralco stands firm in its mission to support the government’s nation-building agenda, drive economic progress, and improve the lives and economic well-being of our people,” he said.

The franchise renewal provides the legal foundation for Meralco to pursue long-term programs that align with the country’s shift toward cleaner, smarter, and more resilient energy systems.

However, consumer advocacy groups have voiced concern over the timing of the move.

The People for Power (P4P) coalition and United Filipino Consumers and Commuters (UFCC) argued that renewing Meralco’s franchise four years ahead of its 2028 expiration could undermine accountability.

P4P convenor Gerry Arances warned that the early renewal “will remove the ability of the government to hold them to account and protect consumers.”

Despite these criticisms, the law is now in effect and marks a key development in the country’s energy sector roadmap, which includes diversification of energy sources, grid upgrades, and improved customer service delivery.

Meralco currently serves over 7.5 million customers across Metro Manila and parts of CALABARZON, Central Luzon, and other key economic zones, making it a crucial player in the Philippines’ energy future.

The renewed franchise secures the utility’s role in powering growth while positioning it to meet future challenges, from climate change to rising energy demand in a rapidly developing economy.