SURIGAO del Sur 2nd District Rep. Johnny Pimentel has issued a warning that the franchise of the Manila Electric Co. (Meralco) may be at risk of cancellation. This is due to the power company’s alleged failure to submit annual financial and operation reports, which are required by law.
Pimentel, the vice chairman of the House Committee on Legislative Franchises, stated during a public hearing conducted by the committee that Meralco has only submitted reports from 2018 to 2022. He emphasized that the financial report received by the committee differed from what was expected.
According to Pimentel, Meralco’s failure to comply with the reportorial requirements for these years could be seen as a violation of Section 14 of Republic Act 9209. This non-compliance could potentially serve as grounds for the cancellation of the company’s franchise.
The lawmaker stressed that the submission of these reports should be done annually. However, upon checking the records, it was discovered that Meralco had only submitted the required reports seven times, instead of the expected 20.
Meralco, on the other hand, maintains that it has diligently submitted its annual financial and operating reports since being granted its franchise in 2003. Jose Ronald Valles, the company’s First Vice President and Head of Regulatory Management, clarified that Meralco complies with corporate reportorial requirements, submitting the reports to the Philippine Stock Exchange, the Securities and Exchange Commission, and the Energy Regulatory Commission.
Valles reiterated that Meralco strictly adheres to the law and operates within the bounds of its franchise and the areas it serves.
Responding to inquiries from The Manila Times, Pimentel stated that he would verify Meralco’s submissions. As far as the committee is concerned, only the reports from 2018 to 2022 have been submitted. In the next committee hearing, it will be determined whether Meralco has made the submissions for the years not mentioned in the committee secretariat’s report.
Earlier, Laguna Rep. Dan Fernandez proposed dividing Meralco’s franchise into three, claiming that the power company operates in the National Capital Region, south and north Luzon. Fernandez argued that Meralco’s control over 70 percent of Luzon’s electricity output necessitated a more localized approach to its franchise.
As the situation unfolds, Meralco faces the potential cancellation of its franchise if it is found to have violated the law by failing to submit the required annual financial and operation reports. The outcome of the committee’s investigation will shed light on the veracity of the claims made by both parties involved.
It is important for companies operating within any industry to maintain compliance with the legal requirements set forth by regulatory bodies. This ensures transparency and accountability, fostering trust among stakeholders and the general public.
As the discussions continue, the future of Meralco’s franchise hangs in the balance, highlighting the significance of adherence to reporting obligations for all organizations.
Source: The Manila Times
