As the year draws to a close, the Manila Electric Company (Meralco) continues to exhibit exceptional service, bolstering its commitment to innovation to enhance value for its customers and stakeholders.

The Manuel V. Pangilinan-led distribution utility closed the first nine months of 2024 with an impressive operational and financial performance, further solidifying its role as a leader in the energy industry and as an economic growth enabler.

Continuing initiatives to support customers’ needs

To ensure delivery of sufficient, reliable, and stable service at the least possible cost, Meralco continuously implements distribution network upgrades and strategic sourcing activities.

Among the major distribution network projects completed by Meralco in the third quarter of the year are the new gas-insulated switchgear (GIS) in a first full indoor substation at Elisco Road in San Joaquin, Pasig City, the Milagrosa Switching Station in Carmelray Industrial Park II in Calamba City, Laguna, and a third 300 MVA power transformer at the Duhat Delivery Point Substation in Bocaue, Bulacan.

Through its pole relocation program, a total of 924 poles were relocated for road widening projects of the Department of Public Works and Highways and various Local Government Units (LGUs) while a total of 571 poles were relocated for the government’s Build Better More infrastructure program.

“Despite the challenges we have encountered so far this year, Meralco has been relentless in anticipating the needs of our customers and investing in projects that would be beneficial for them in the long run,” Meralco Executive Vice President and Chief Operating Officer Ronnie L. Aperocho said.

Consistent with its Power Supply Procurement Plan approved by the Department of Energy (DOE), Meralco conducted the competitive selection process (CSP) for 600-MW baseload and 400-MW mid-merit supply requirements.

Meralco secured the best bids for the 600 MW baseload requirement from two (2) generation companies, which offered a levelized cost of electricity (LCOE) inclusive of line rental and Value Added Tax (VAT) of P5.6015 per kWh and P5.7392 per kWh.

Meanwhile, the sole winning bidder of the CSP for the 400-MW mid-merit requirement offered an LCOE of P7.6816 per kWh, including line rental and VAT. These 15-year PSAs from the two (2) CSPs shall be submitted to the Energy Regulatory Commission for review and approval to be implemented beginning August 26, 2025.

Aperocho added that Meralco is also working to ensure that the company is prepared to meet the supply needs of customers without unnecessarily exposing them to volatile energy prices.

“To this end, our efforts are centered on competitive biddings, which historically yielded lowest rates that translate into savings for our millions of customers. While there are still a lot of things to be done, our customers can be assured that Meralco will remain proactive in working with the energy industry players, and the regulator, in promoting consumer welfare,” he said.

Power generation business forges ahead

Meralco PowerGen Corporation (MGEN) the power generation investment arm of Meralco, was also a significant contributor to the distribution utility’s continued growth.

As of end-September, MGEN had a combined power generation capacity of 2,417 MW (net) in its diversified power generation portfolio in the Philippines and Singapore. During the period, MGEN delivered 11,556 GWh of energy, 3% more compared with the same period last year.