Meralco shares rise after Senate OKs franchise renewal
MANILA, Philippines — The share price of power giant Manila Electric Co. (Meralco) closed higher after senators voted to pass the measure renewing its franchise for another 25 years.
The company’s shares remained strong in green territory on Tuesday, climbing by 6.27 percent to close at P478.20 apiece.
With 18 affirmative votes, one negative and zero abstentions, the Senate on Monday approved on third and final reading House Bill (HB) 10926, which seeks to renew the franchise granted to Meralco under Republic Act 9209.
Once enacted into law, the power distributor is expected to provide electric service to its franchise coverage until 2053.
“We welcome the support of our honorable lawmakers from the Senate, especially Senator Joel Villanueva, for their vote of support for the grant of a new franchise to Meralco,” the company said in a statement sent to The STAR.
The move, Meralco said, marks “a significant step toward our goal of ensuring the continued delivery of sufficient, reliable and uninterrupted electricity service to millions of Filipino consumers.”
Currently, the company provides electric service to at least eight million customers within its franchise area, which includes Metro Manila and nearby provinces.
“Granting a fresh authority to Meralco to operate will allow the distribution utility to implement long-term projects to further improve the delivery of electricity service to households and commercial and industrial customers that drive the country’s economic progress,” it said.
Meralco said a renewed franchise will also enable investments in capital-intensive projects aimed at enhancing the resiliency and adaptability of its distribution network.
For 2025, the company has allocated around P25 billion to boost the integrity of its distribution system and electrical infrastructure.
“As we continue to explore ways to bring more value to Filipino consumers, Meralco reaffirms its commitment to remaining an active partner of the government in nation-building,” it said.
Meralco’s current franchise is set to expire in 2028.
Stock market analysts have told The STAR that the franchise renewal is a “strong vote of confidence” in the Meralco brand and signals a