Through innovative and customer-centric initiatives Meralco drives a transformation energy future | Daily Tribune

Through innovative and customer-centric initiatives Meralco drives a transformation energy future

‘We remain dedicated to our integrated strategy, focusing on a customer-centric distribution utility (DU). Quite apart from the conventional view of profits and positive cash flows, our commitment to reliable service, affordable energy, and customer centricity also drives shareholder value.’ — Meralco chairman and chief executive officer Manuel V. Pangilinan

DT·17 March 2025, 12:14 am

Through innovative and customer-centric initiatives Meralco drives a transformation energy future — Proactive partner in powering progress. Steadfast in its commitment to meet the increasing demands of customers and support the continued growth of the economy, Meralco intends to be more aggressive deploying modern and innovative solutions to make its distribution network smarter, more robust and more resilient.
PHOTOGRAPHS COURTESY OF MERALCO

As the country’s leading energy provider, Manuel V. Pangilinan-led Manila Electric Company (Meralco) continues to redefine the power distribution and generation landscape through initiatives that drive exceptional growth and cement its unwavering commitment to service excellence, customer centricity and consumer empowerment anchored on innovation.

Last year, Meralco achieved remarkable milestones in innovation and service excellence that ensure reliable service, affordable energy and customer centricity to meet the evolving energy needs of its more than eight million customers.

This year, Meralco remains steadfast in its mission to deliver reliable and affordable electricity while spearheading advancements in grid modernization, renewable energy and regulatory compliance.

“We remain dedicated to our integrated strategy, focusing on a customer-centric distribution utility (DU). Quite apart from the conventional view of profits and positive cash flows, our commitment to reliable service, affordable energy, and customer centricity also drives shareholder value,” Meralco chairman and chief executive officer Manuel V. Pangilinan said.

Serving growing power demand within its franchise area. Meralco focuses on new and project upgrades such as the expanded Eton Centris Gas Insulated Switchgear (GIS) Substation to enhance the efficiency, reliability and resilience of its distribution network.

Partnering for improved water access. Meralco uplifts communities outside its franchise area through One Meralco Foundation’s electrification programs, such as the Water Access Electrification. One Meralco Foundation president Jeffrey O. Tarayao and Meralco EVP and COO Ronnie L. Aperocho (third and fourth from left) turned over a water facility powered by solar to an underserved community in South Cotabato that has long faced challenges with access to clean and reliable water.

Empowering customers with choice

Meralco breached the eight-millionth mark last October, ending 2024 with a customer count of 8.043 million. And as it continuously grows its reach and customer base, Meralco maintains top-notch service performance, underscoring the company’s operational resilience as it adapts to evolving energy demands and consumption patterns.

The average number of power interruptions per customer, measured by the System Average Interruption Frequency Index (SAIFI), has been steadily decreasing, reaching 1.041 times by the end of 2024 — an improvement from 1.194 times in 2023. Likewise, the System Average Interruption Duration Index (SAIDI), which tracks the average outage duration per customer, improved to 108.213 minutes from 123.708 minutes.

To better serve and empower its growing number of customers, Meralco has been proactively implementing initiatives to further enhance its physical and digital touchpoints with digital channels servicing more than 60 percent of the total customer transactions.

In support of customer choice programs, Meralco has been strengthening its grid infrastructure and metering capabilities through its Advanced Metering Infrastructure (AMI) strategy that aligns with regulatory requirements and integrates smart metering solutions. Investments in back-end architecture further ensured the seamless implementation of retail aggregation program (RAP), which marked a significant milestone in February 2025 with the switching of the first retail aggregation customer.

Meralco also continuously upgrades its distribution facilities and conducts strategic sourcing activities to delivery sufficient, reliable and stable service at the least possible cost to customers.

In 2024, the company completed a total of 18 capital expenditure projects, of which four are Gas Insulated Switchgear (GIS) smart substations, with advanced features to enhance the efficiency, reliability and resilience of the power distribution network. This includes the Arcovia and Sampaloc GIS substations in the cities of Pasig and Manila, respectively, that were energized in the fourth quarter.

Other key projects that were completed during the quarter were the interconnection of the Maragondon solar plant in Cavite; the replacement of switchgears at the New Teresa Substation in Rizal, Urdaneta substation in Makati City, and Novaliches Substation in Quezon City; and replacement of power transformer bank at the Duhat substation in Bulacan.

For its pole relocation activities in support of government infrastructure projects, Meralco relocated 1, 235 poles to give way to Department of Public Works and Highways projects as well as 709 poles affected by the Build Better More Program.

In its relentless pursuit to keep up with the evolving requirements of its customers, Meralco laid down plans to undertake massive investments aimed at enhancing its distribution network, increasing resilience, advancing grid modernization and further improving operational efficiency and customer service.

The distribution utility proposed a P246-billion capital expenditure (capex) for the new 5th Regulatory Period (5RP) that covers the July 2025 to June 2029 period. This will be used for improvement, upgrading and storm-hardening programs for its distribution facilities. It also covers the implementation of underground cabling which aims to address the issue of spaghetti wires as well as reinforce its facilities amid natural disasters such as typhoons and earthquakes.

Meralco will also continue investing in advanced metering infrastructure and innovative projects to strengthen cybersecurity, empower customers and reduce service interruptions while enabling faster trouble restoration for improved customer experience.

“We will continue to meet growing electricity needs. With renewed congressional support, we will invest in projects to enhance our service and ensure a future-ready power distribution system. Our storm hardening initiatives will strengthen our network and expedite AMI deployment. Additionally, we are preparing to support increased use of distributed energy resources through network automation and advanced technology, while empowering customers with more options and control over their energy use,” Meralco executive vice president and chief operating officer Ronnie L. Aperocho said.

“As the nation gears up for the mid-term national and local elections this May, we are working closely with the Commission on Elections and Local Government Units within the franchise area to ramp up inspections, upgrading and maintenance activities towards ensuring a stable and reliable power supply. Similarly, we are closely monitoring the La Niña phenomenon, which is forecasted to persist and coincide with the start of the critical dry season,” Aperocho said.

Exceptional year for power generation

Beyond distribution, Meralco’s power generation arm, Meralco PowerGen Corporation (MGEN), has demonstrated strong operational performance and expanded its clean energy portfolio, forging key partnerships and investments that further its leadership in the energy sector.

Under renewable energy unit MGEN Renewable Energy, Inc. (MGreen), Terra Solar Philippines, Inc. (MTerra Solar) hit significant milestones in 2024 headlined by the groundbreaking of the project last November. MTerra Solar awarded engineering, procurement and construction (EPC) contracts and achieved substantial progress in land acquisition and securing of tower sites for the transmission line. Overall, total project completion stood at 22 percent as of end-December.

MGEN’s liquefied natural gas (LNG) business in Singapore also continues to grow. In January 2025, Pacific Light Power (PacificLight) was awarded the right to build, own, and operate a hydrogen-ready Combined Cycle Gas Turbine (CCGT) facility with a capacity of at least 600 MW on Jurong Island by the Energy Market Authority of Singapore.

The new project, which is scheduled to be operational in January 2029, will be part of PacificLight’s portfolio that includes the existing 830 MW CCGT facility as well as the 100 MW of Fast Start capacity due to commence operations in the second quarter of 2025.

Its venture into the Philippine LNG industry likewise progressed. Before 2024 ended, the Philippine Competition Commission approved the investment by MGEN and partners in the country’s first and most expansive integrated LNG facility in Batangas under the landmark agreement signed in March 2024. With the closing of the deal, MGEN now owns an attributable 40.2 percent interest in two gas-fired power plants — the 1,200 MW of South Premiere Power Corporation and 1,275 MW of Excellent Energy Resources, Inc., as well as an LNG import and regasification terminal.

“As we closed another year of significant strategic growth and operational excellence, MGEN remains committed to delivering reliable and sustainable energy solutions. The successful expansion of our conventional and renewable portfolios, alongside major acquisitions, and strategic partnerships, strengthens our position as a leader in the power generation industry,” MGEN president and chief executive officer Emmanuel V. Rubio said.

Beyond growing the business

As it continues to align business growth with a strong commitment to sustainability, Meralco was recognized for excellence in environmental, social, and governance (ESG) performance in energy distribution at the inaugural Triple P Sustainability Awards organized by the International Association of Business Communicators.

Meralco first vice president and chief sustainability officer Raymond B. Ravelo was also named the Triple P’s first-ever “ESG Thought Leader of the Year” for driving Meralco’s sustainability agenda. Meralco remains the sole Philippine utility in the Bloomberg Gender Equality Index — the only global ESG assessment focused on workplace gender equality.

Meralco’s #Mbrace Diversity and Inclusion Program was also recognized at the 2024 United Nations Women Empowerment Principles Awards for advancing gender balance and equal opportunities.

Through its social development arm One Meralco Foundation (OMF) community development initiatives in 2024 brought significant and positive impact to more than 41,000 families. Staying true to its mission of spreading the light to the farthest areas in the country, OMF energized 3,455

low-income households within the Meralco franchise area under its Household Electrification Program and four off-grid public schools in Camarines Norte and in Oriental Mindoro and Palawan. The Foundation also brought solar-powered mobile irrigation pumps to two agricultural cooperatives in Lupao and Rizal, Nueva Ecija and installed a solar photovoltaic system on a water access facility in Brgy. Guinsang-an, Sto. Nino, South Cotabato and on two rural health stations in the remote communities of Brgy. Lamfugon, Lake Sebu, South Cotabato and Brgy. Rizal, Polilio Island, Panukulan, Quezon Province.

The Foundation also responded to various community needs in the Meralco franchise area by working with local governments and other non-government organizations by implementing more than 200 community relations projects supporting education, health, youth and development. It also responded to the immediate needs of at least 16,000 families affected by disasters like fires, typhoons and floods. It also worked with the Congressional Spouses Foundation, Inc. and other foundations in the MVP Group for the construction of the Bagong Bayaning Mandirigma Casualty Care Center in the AFP Medical Center (V. Luna Hospital) to attend to the needs of Filipino soldiers wounded in action.

Under the flagship One for Trees environmental program, OMF and partners, including MGEN, continued reforestation of mountains and wetlands with more than 80,000 additional new trees and mangroves planted by tree farmers in the Sierra Madre in Siniloan, Laguna and Del Carmen in Siargao Island, Surigao Del Norte, respectively, in 2024. To date, the One for Trees program covers over 2.6 million trees and provides livelihood to over 2,300 tree farmers.

MGEN and its subsidiaries also continued to contribute to the social development of its host communities through initiatives on healthcare, education and energy access benefitting over 100,000 individuals, and support for biodiversity, tourism and sports and recreation programs. Overall, these efforts aimed at fostering sustainable progress and community resilience benefitted Filipino families in different parts of the country last year.

“Continuing developments in MGEN’s power generation build-out, and with improved operational efficiency of our operating DU businesses and our non-power subsidiaries, are expected to further solidify the Meralco growth story. Along with these, we will amplify our social development programs to reach the most remote parts of the country and support the industries that these communities rely on for their living. All these reinforce our deep commitment as a dependable nation-building partner of our customers, the communities we serve, and our country,” Pangilinan said.

As Meralco looks ahead, it remains committed to powering the nation’s growth, embracing technological advancements and fostering sustainable practices.

With its long-growth strategy, Meralco continues to strengthen its service capabilities and drive forward a future-ready power distribution system that empowers communities and fuels economic progress.