ERC sets hearing on Meralco capex
BY LENIE LECTURA – JULY 15, 2022
from Business Mirror
The Energy Regulatory Commission (ERC) will hear next month a petition of the Manila Electric Co. (Meralco) to approve its P2.34-billion capital expenditure (capex) program for its expansion projects that would be implemented together with the relocation of its facilities affected by government projects.
“Finding the said application to be sufficient in form with the required fees having been paid, the Commission hereby sets the same for determination of compliance with the jurisdictional requirements, expository presentation, pre-trial conference, and presentation of evidence on the following dates and online platform for the conduct thereof,” said the ERC in its order that was promulgated last July 8.
The agency will determine Meralco’s compliance with the requirements on August 23 and conduct a pre-trial conference on August 30.
Meralco’s application covers the following projects that will be implemented together with the relocation of facilities that will be affected by the projects of the Department of Transportation under the “Build, Build, Build” program.
These are the P502.13 million for projects aligned with the PNR North 1 (Tutuban-Malolos), P127.46 million for projects aligned with the PNR North 2 (Malolos-Clark), P421.02 million for projects aligned with the PNR South Commuter (Solis-Calamba), and P1.29 million for project aligned with the PNR South Long Haul (Manila-Sorsogon, Batangas).
“It is necessary that the construction and implementation of the Meralco projects follow the schedule of the reduction of the affected facilities, and that both be completed their respective target dates to avoid unnecessary costs and resources and ensure that the implementation of both the relocation of the affected facilities and the Meralco projects is economically viable and optimal,” the company said.
The utility firm said these projects shall be implemented in phases simultaneous with the implementation of underground civil works in preparation for the relocation of Meralco’s existing facilities. Thereafter, Meralco will permanently install electrical facilities to either spaces corresponding to rights-of-way to be provided by the Philippine National Railways (PNR).
If these projects are not implemented, Meralco said there could be multiple power interruptions due to the construction of additional underground civil works that will affect existing overhead facilities and could cause delay in the implementation of system requirement projects intended to improve the reliability of the distribution system.
“The system requirement projects are intended to meet the forecasted peak demand, serve the power of both existing and future customers adequately, relieve critical loading of feeders, and address contingency problems, all for the purpose of maintaining a high level of safety, power quality, efficiency, and system, reliability of Meralco’s distribution network system.”
Meanwhile, Meralco said separately that it has been recognized as one of the most socially and environmentally responsible companies globally.
UK-based FTSE Russell, a global sustainability index provider, announced Meralco’s inclusion in the FTSE4Good Index Series,specifically in the FTSE4Good Emerging Index and in the FTSE4Good ASEAN 5 Index.
Meralco is the second power company in the Philippines recognized by FTSE Russell for outstanding sustainability performance.
The FTSE4Good Index Series is a set of global sustainability indices that measure the performance of companies in key environmental, social, and governance (ESG) areas such as climate change, labor standards, and anti-corruption. It was designed to help market participants assess sustainable investment products, to research environmentally and socially sustainable firms, and to provide a transparent and evolving global ESG standard against which businesses could benchmark their performance.
To be included in the FTSE4Good Index, a company in an emerging market must achieve an overall ESG rating of 2.9 or higher. In FTSE Russell’s latest assessment, Meralco garnered an ESG rating of 3.2, topping the Philippines’ and the global energy sector’s averages.
