POWER distributor Manila Electric Co. (Meralco) is setting aside P25 billion next 12 months for the “storm-hardening” of its distribution systems, in keeping with its chief operating officer (COO).
“For 2025, we’ve a P25-billion budget,” Meralco Executive Vice-President and COO Ronnie L. Aperocho told reporters last week, noting that this only covers the distribution business.
Meralco must strengthen its power distribution networks on account of the “parade of storms” the country is facing, he said.
“The integrity of our distribution system is admittedly, parang (sort of) in peril if our system will not be really that storm-hardened.”
Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said the corporate expects to extend its overall budget for 2025.
“I consider so,” Mr. Pangilinan said when asked if the corporate would allocate the next capital expenditure (capex) budget next 12 months, noting that the rise shall be primarily driven by the P200-billion Terra Solar project.
Meralco, through its unit Terra Solar Philippines, Inc., is developing a project consisting of a 3,500-megawatt-peak solar energy plant and a 4,500-megawatt-hour battery energy storage system.
The group took over the project after acquiring a controlling stake in SP Latest Energy Corp. through MGen Renewable Energy, Inc., the renewable energy development arm of Meralco Power Gen Corp. The latter is a unit of Meralco.
Mr. Pangilinan also said that the corporate is prone to allocate “some extent of capex” to San Miguel Global Power Holdings Corp.’s (SMGP) gas power plant, which is anticipated to grow to be operational next 12 months.
To recall, Meralco, through its subsidiary Meralco PowerGen Corp., signed a $3.3-billion landmark cope with Aboitiz Power Corp. and SMGP to launch an integrated liquefied natural gas project.
For 2024, Meralco set a capex amounting to about P40 billion, the majority of which is for distribution utility and power generation.
As of the tip of September, the corporate has spent P26 billion on capex, of which P15.3 billion was used for distribution network projects. The remainder was utilized for the event of solar energy plants and facilities for the telco tower business.
“I believe it is going to be a greater 12 months next 12 months for Meralco,” Mr. Pangilinan said.
For the January-to-September period, Meralco registered an attributable net income of P11.13 billion, higher by 7.2% from last 12 months’s P10.55 billion.
Meralco expects to exceed its P43-billion profit goal for 2024, driven by its strong financial and operating results for the nine months, accompanied by a unbroken positive outlook.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Helpful Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
