Meralco sets P30-B capital outlays for ’26
Meralco is preparing to significantly boost its capital expenditure (capex) in 2026 as it ramps up investments in grid resilience, network modernization and customer growth, a top official said.
In an ambush interview, Meralco executive vice president and chief operating officer Ronnie Aperocho pegged Meralco’s planned annual capex for its distribution utilities (DU) at P26 to P30 billion next year.
“That’s the range for the DUs,” he said. This marks an increase from this year’s projected capex of around P25 billion.
Aperocho said the allocation for 2026 would spread across several major components of Meralco’s distribution business.
A large portion, he explained, would go to meeting customer requirements and applications for new connections.
He noted that Meralco would also allocate funds for the construction of new substations and the replacement of aging facilities as part of its ongoing system improvement efforts.
He likewise pointed out that the company was currently conducting trials for undergrounding systems, which would also form part of next year’s spending program.
Another key item in the budget is the rollout of advanced metering infrastructure (AMI), which is estimated to cost P8 billion for the first regulatory period.
The AMI program is a key piece of Meralco’s grid modernization strategy. This aligns with its broader goals to deploy smart meters, enhance customer experience and improve operational efficiency.
The planned increase in capex comes as Meralco continues to face pressure to fortify its grid against extreme weather events and growing load.
In November 2024, Aperocho had already indicated that P25 billion of next year’s capex would be directed toward resilience—particularly grid-hardening projects.
This shift is underscored by Meralco’s recent spending. According to the company’s report, it spent P21.4 billion in 2024 on distribution network capex, prioritizing “major miscellaneous allocation” projects, such as replacing switchgear and power transformers, as well as building new control houses.
Meralco’s push for higher capex coincides with its application to the Energy Regulatory Commission for its fifth regulatory period, which runs from July 2025 to June 2029.
Meralco is also planning to lay as much as 1,500 circuit kilometers of underground cables by 2030, focusing on financial centers, commercial hubs and typhoon-prone areas, as part of its long-term grid modernization effort.
Meralco’s push for increased capital investments comes on the back of robust financial performance.
In 2024, the company posted a record consolidated core net income of P45.1 billion, up 22 percent.
