Meralco proposes P247-billion spending plan in rate reset filing

Power distributor Manila Electric Co. (Meralco) has proposed a capital expenditure (capex) budget of approximately P247.14 billion for its first regulatory period covering 2027 to 2030.

In a 13-page filing with the Energy Regulatory Commission (ERC), Meralco said it plans to invest P51.81 billion in 2027, P61.19 billion in 2028, P61.08 billion in 2029, and P73.07 billion in 2030.

The proposed capex will fund projects aimed at increasing network capacity to meet demand growth, relocating assets, acquiring non-network assets needed for the normal and efficient operation of the electric distribution system, and deploying automation and technology projects, including its Advanced Metering Infrastructure program.

Meralco is projecting a total revenue requirement of P532.12 billion for the period, broken down into P116.04 billion for 2027, P126.864 billion for 2028, P138.75 billion for 2029, and P150.47 billion for 2030.

The proposal forms part of the company’s rate reset application for the first regulatory period under the ERC’s newly adopted rationalized rules for setting distribution wheeling rates for privately owned distribution utilities.

Meralco is the country’s largest private electric distribution utility, serving more than 8.1 million customers in Metro Manila and nearby provinces, including Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga, and Quezon.

Meralco’s controlling shareholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera