Meralco sets P25B for more resilient distribution

Meralco sets P25B for more resilient distribution | Daily Tribune

Meralco is earmarking a capital expenditure (capex) of P25 billion for its distribution business alone in 2025, up from P22 billion this year, to strengthen its network against increasingly severe weather conditions.

Meralco Executive Vice President and Chief Operating Officer Ronnie L. Aperocho said a significant portion of next year’s budget will be allocated to grid resilience and storm-hardening measures, critical to safeguarding the company’s distribution system from the rising frequency and intensity of storms.

“(The budget) is more on grid resilience. We have to intensify the networks, especially now that we have a parade of storms, and the integrity of our distribution system is really in danger,” Aperocho said in an interview with reporters.

Aperocho clarified that the P25-billion allocation exclusively covers distribution projects. Separate and larger budgets are designated for Meralco’s power generation ventures, including projects under Terra Solar Philippines, Inc. (TSPI).

Separately, Meralco Chairman Manuel V. Pangilinan expressed optimism about the company’s prospects for 2025, citing the country’s steady economic performance under President Ferdinand Marcos Jr. and ongoing investments in both distribution and generation.

“I think it will be a better year next year for Meralco. I’m quite confident because the economy is doing okay under President Marcos,” Pangilinan said.

Pangilinan noted that Meralco’s overall capex for 2025 may increase, largely driven by requirements from its affiliate TSPI, which is constructing the world’s largest solar and battery storage project across Bulacan and Nueva Ecija.

For the first three quarters of the year, Meralco’s capex reached P26 billion, primarily directed toward distribution network projects, including new customer connections, asset renewals, and load growth initiatives.

Additional spending supported the development of solar power plants and infrastructure for the company’s telecom tower business.

By the end of September, Meralco’s customer base had expanded to 7.99 million, up 3 percent from 7.7 million a year earlier. The company expects to reach its eight millionth customer by next month.