Powering The Future: Why President Marcos Jr.’s Renewal Of Meralco’s Franchise Secures More Than Just Electricity

In a move that illuminates the Philippines’ path toward long-term energy security and industrial competitiveness, President Ferdinand R. Marcos Jr. has signed into law the bill extending the franchise of the Manila Electric Company (Meralco) for another 25 years—ensuring the continued operations of the country’s largest private power distributor until 2053.

“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.” – Manuel V. Pangilinan, Chairman & CEO I Photos: Meralco

The move, which comes amid mounting global trade disruptions, as well as geopolitical instability in the Taiwan Strait, sends a strong signal of the administration’s commitment to powering national growth through stable, forward-looking energy partnerships.

A Strategic Energy Anchor

With over 8 million customers across 39 cities and 72 municipalities, Meralco delivers more than half of the nation’s electricity supply. It operates in just 3% of the country’s land area, yet this territory accounts for a disproportionate share of the national GDP.

The franchise renewal gives Meralco the regulatory stability and long-term horizon necessary to pursue high-capex infrastructure projects, digital transformation, and climate-resilient upgrades.

“This development fortifies our commitment to deliver stable, reliable, and affordable electricity to millions of Filipinos,” said Meralco Chairman and CEO Manuel V. Pangilinan.

The extension, he added, allows Meralco to modernize its distribution network, invest in smart grid technologies, and support the country’s industrial expansion—including strategic sectors like semiconductors.

Energizing the Luzon Economic Corridor

The franchise renewal arrives at a critical juncture for the Philippines, which is ramping up the Luzon Economic Corridor (LEC)—a trilateral initiative between the Philippines, the United States, and Japan. Envisioned to link Subic Bay, Clark, Metro Manila, and Batangas, the LEC is a future-forward project designed to supercharge regional connectivity, enhance logistics, and attract advanced manufacturing investments.

Among the corridor’s cornerstone goals is to enable the semiconductor and electronics industry to flourish.

With the U.S. Trade and Development Agency recently increasing funding for the Subic-Clark-Manila-Batangas freight railway, the foundation is being laid for a competitive industrial zone that will require resilient, high-quality power—precisely what Meralco is being tasked to deliver.

The Taiwan Strait Factor and the Philippine Opportunity

The urgency to bolster local semiconductor capabilities is rising. Taiwan currently produces nearly 90% of the world’s most advanced chips. Escalating tensions between China and Taiwan threaten not only semiconductor production but also global shipping routes that pass through the Taiwan Strait.

This global risk presents an opportunity for the Philippines, which is now being recognized as a viable alternative in the global semiconductor value chain.

The Marcos administration has responded by establishing the Semiconductor and Electronics Industry (SEI) Advisory Council to chart a path forward—focused on workforce training, investment attraction, and roadmap alignment with economic priorities.

Meralco’s ability to provide reliable power to semiconductor facilities, such as Samsung Electro-Mechanics Philippines Corporation (SEMPHIL) in Laguna, becomes a critical enabler in this strategy.

The power distributor’s proactive planning to meet SEMPHIL’s expansion energy needs underscores how utilities and industrial policy must work in lockstep.

Empowering the Countryside and Digital Future

President Marcos’ endorsement of Meralco’s franchise is also part of a broader narrative to bridge the urban-rural economic divide. According to Meralco SVP Arnel Casanova, unreliable electricity in rural areas contributes directly to regional poverty.

Through partnerships with electric cooperatives, Meralco is aiming to transfer its technology, economies of scale, and technical expertise to underserved provinces—without displacing local stakeholders.

As Casanova emphasized: “We literally lack power in the countryside… and in the digital age, reliable electricity is the foundation of progress.” This vision aligns with the government’s aspirations to move beyond residential electrification and toward industrial-scale empowerment of local economies.

A Vote for Stability and Progress

Critics may caution against granting any private utility a long franchise extension.

But viewed through the lens of economic transformation, President Marcos’ decision reflects both pragmatism and foresight. It ensures continuity for the country’s most crucial utility at a time when energy reliability, geopolitical resilience, and digital transformation are deeply intertwined.

Meralco, for its part, has expressed its gratitude for the renewed trust. Acknowledging that this is not just a vote of confidence—it is a call to action.

And action is exactly what the country needs. With the franchise extension now law, Meralco has both the mandate and the means to help power a more resilient, inclusive, and globally competitive Philippines.