MANILA Electric Co. (Meralco) is exploring a possible partnership with Albay Electric Cooperative, Inc. (Aleco) after local officials sought the corporate’s assistance in improving electricity distribution services within the province.
Arnel P. Casanova, Meralco senior vice-president and head of strategic distribution utility partnerships, told reporters last week that local leaders in Albay had asked the corporate to assist Aleco address persistent power supply issues.
“They are saying they’re struggling because businesses planning to maneuver into their municipalities are unable to speculate as a result of unreliable power supply,” Mr. Casanova said.
Aleco is a member-owned electric cooperative serving three cities and 15 municipalities in Albay.
Mr. Casanova said Albay’s mayors had encouraged Meralco to evaluate the province’s power distribution system and explore ways to enhance Aleco’s services.
“We’re studying that and hopefully, Aleco shall be welcoming us to supply us with the obligatory information so we could make a greater proposal,” he said.
Meralco, the country’s largest private electric distribution utility, serves greater than 8.2 million customers in Metro Manila and nearby provinces, including Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga, and Quezon.
The corporate is pursuing the chance after its unsolicited proposal to partner with South Cotabato II Electric Cooperative, Inc. (Socoteco II) was rejected. Socoteco II’s board as a substitute endorsed a competing proposal from Ignite Power, backed by Primelectric Holdings, Inc.
Mr. Casanova said Meralco had sent a letter urging Socoteco II to conduct a competitive selection process to make sure transparency.
“To be sure that the method shall be more transparent, we encourage them to truly bid it out,” he said.
Individually, Mr. Casanova said Meralco intends to take part in the planned public bidding for a non-public sector partner of Batangas II Electric Cooperative, Inc. (Batelec) after its board approved the conduct of the bidding.
Batelec said the bidding would offer the governance framework for evaluating proposals for personal sector participation in its electricity distribution business.
“I feel they’re finalizing the terms of reference, so we’re waiting for that. We’ll wait for that after which we’ll see. We’ll definitely take part in the bidding,” Mr. Casanova said.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Useful Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera