Meralco eyes ₱50B for upgrades

By Lenie Lectura – December 16, 2024
from Business Mirror

THE Manila Electric Co. (Meralco) may earmark as much as P70 billion to improve its distribution network and roll out smart meters, among others, over the next five years.

Of the amount programmed from 2025 to 2029, P30 billion may be allotted for infrastructure enhancement and P40 billion to finance the roll out of four million smart meters.

Network improvement may involve storm hardening initiatives, system improvement projects and pole relocation. Meralco said it foresees the need to be even more aggressive in investing in grid modernization projects and operational efficiency through advanced metering infrastructure (AMI) that will make the network more robust, more resilient, and more intelligent.

Meralco, according to First Vice President and Head of Networks Froilan J. Savet, will initially rollout 390,000 smart meters from 2025 up to the first half of 2026. This will involve a capital expenditure of P4.56 billion. Meralco will also deploy next year its mobile medium-voltage switchgear.

Meralco spent P26 billion for capex during the nine months of the year, of which P5.3 billion were utilized for distribution network projects that included new connections, asset renewals, and load growth projects, among others. The balance was used for the development of solar power plants and facilities for the telco tower business.

Meralco is expecting to exceed the P43-billion profit guidance set out in the first half, paving the way for another year of record earnings.

“We look forward to another profitable year in 2025 from organic growth and contributions from our new investments. We remain optimistic about the continued expansion of the country’s economy under the leadership and tutelage of President Ferdinand Marcos, Jr., with full-year economic growth forecasts hovering around 6 percent, and the potential to outpace other Southeast Asian nations,” Meralco Chairman Manuel V. Pangilnan earlier said.