Meralco bracing for P272-B capital outlays
Tycoon Manuel V. Pangilinan-led Manila Electric Co. (Meralco) is looking to pour P272 billion into its network through 2030 as the group beefs up its distribution infrastructure.
Based on its filing to the Energy Regulatory Commission (ERC), Meralco, the biggest power distributor in the local market, seeks to allot capital expenditures (capex) of P50.79 billion for 2027.
It also seeks clearance to set aside P59.87 billion for 2028, P59.67 billion for 2029 and P71.17 billion for 2030.
The group likewise included carry-over capex for regulatory years 2027 and 2028, reaching P20 billion and P10.6 billion, respectively.
Major projects that are currently under construction or ongoing have been tagged as “carry-over.”
To finance the proposed capital spending, the power utility giant hopes to secure the regulator’s clearance for an average distribution rate of P2.34 per kilowatt hour (kWh).
This is higher than its current distribution charge at P1.3522 per kWh.
“Even as we continue our aggressive efforts to invest in strengthening our distribution network and implementing significant customer service improvement initiatives over the past decade, our rates have not increased in the past decade,” said Meralco senior vice president and head of Regulatory Management Office Jose Ronald Valles.
“In fact, it was further reduced to cover the lapsed period, as no rate reset was completed from 2015 to 2025,” he added.
The official said approving Meralco’s proposed rate would “ensure fair and reasonable rates for our customers and drive initiatives that will greatly benefit them in the long run.”
“This rate reset will enable Meralco to pour in massive investments for storm-hardening, upgrading and expansion of our facilities, as well as technological advancements that are necessary for us to future-proof our distribution network,” he said.
A portion of the capex will help finance construction of 25 distribution substations and three delivery point substations. It will also cover the construction and expansion of eight operating centers and 10 business centers.
It said that the funds would also support underground cabling initiatives in select parts of its franchise area, as well as the deployment of advanced metering infrastructure to over 3 million customers.
Meralco said these outlays are “critical” to serve more than 8 million consumers in Metro Manila, Bulacan, Cavite, Rizal and selected areas in Pampanga, Laguna, Batangas and Quezon.
