Power distributor Manila Electric Co. (Meralco) has set aside P25 billion next year to “storm-strengthen” its distribution plans, according to its chief operating officer.ficer (COO).
“By 2025, we have a budget of P25-billion,” Meralco Vice President and COO Ronnie L. Aperocho told reporters last week, noting that this only includes the distribution business.
Meralco needs to strengthen its power distribution networks because of the “storms” the country is facing, he said.
“The integrity of our distribution system really, parang (kind of) in danger if our system isn’t that strong.”
Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said the company expects to increase its 2025 budget.
“I believe so,” said Mr. Pangilinan when asked if the company will allocate a higher capital expenditure (capex) budget next year, noting that the increase will be mainly driven by the P200 billion Terra Solar project.
Meralco, through its unit Terra Solar Philippines, Inc., is building a project that includes a 3,500-megawatt-peak solar power plant and a 4,500-megawatt battery energy storage system.
The group took up the project after acquiring a controlling stake in SP New Energy Corp. through MGen Renewable Energy, Inc., the renewable energy development arm of Meralco Power Gen Corp. The latter is a Meralco unit.
Mr. Pangilinan also said the company is likely to allocate “a certain amount of capex” to the San Miguel Global Power Holdings Corp.’s gas-fired power plant. (SMGP), which is expected to start operating next year.
To recall, Meralco, through its subsidiary Meralco PowerGen Corp., signed a landmark $3.3-billion deal with Aboitiz Power Corp. and SMGP to launch an integrated liquefied natural gas project.
For the year 2024, Meralco has set an estimated capex of P40 billion, most of which is for distribution and power generation.
As of the end of September, the company has spent P26 billion in capex, of which P15.3 billion was spent on distribution network projects. The rest was used to develop solar power plants and telco tower business facilities.
“I think it will be a better year next year for Meralco,” said Mr. Pangilinan.
In the January to September period, Meralco registered a total income of P11.13 billion, up 7.2% from last year’s P10.55 billion.
Meralco expects to surpass its P43-billion net profit for 2024, driven by its strong nine-month financial and operating results, coupled with continued positive outlook.
Meralco’s controlling shareholder, Beacon Electric Asset Holdings, Inc., is partially owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund owned by MediaQuest Holdings, Inc., has an interest in it. BusinessWorld through the Philippine Star Group, which controls. – Sheldeen Joy Talavera
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