Congress has approved a new franchise for the Manila Electric Co. (Meralco), the country’s largest power distributor, ensuring its continued operation beyond 2028 and enabling the company to pursue long-term infrastructure projects aimed at improving electricity services within its franchise area.

“We welcome the renewal of Meralco’s franchise — a recognition of our role in helping power the nation’s growth,” said Meralco chairman and CEO Manuel V. Pangilinan in a statement on Tuesday.

The franchise renewal — backed by President Ferdinand Marcos Jr. and both houses of Congress — strengthens Meralco’s mandate to continue serving its franchise area.

It allows the utility company to distribute electricity in Metro Manila, Bulacan, Cavite, Rizal and parts of Batangas, Laguna, Quezon and Pampanga until 2053.

Meralco’s customer base grew to 8.04 million by the end of 2024, a 3-percent increase from the 7.83 million recorded in 2023.

Pangilinan said the fresh franchise would allow Meralco to implement long-term energy infrastructure projects and modernize its distribution network to make it more resilient to climate-related disruptions.

“It also allows us to continue investing in the modernization and expansion of our distribution network — making it more resilient to climate-related disruptions —while introducing innovations that enhance efficiency and raise customer experience,” Pangilinan said.

“Meralco stands firm in its mission to support the government’s nation-building agenda, drive economic progress, and improve the lives and economic well-being of our people,” he added.

Beyond power distribution, Meralco and its affiliates are pushing to develop renewable energy as a viable power source.

The company is actively exploring nuclear energy and aims to have a fully operational nuclear power plant in the Philippines by 2028, or before the end of President Marcos’ term.

Meralco recently completed a pre-feasibility study on nuclear power development in the country, which identified five potential sites. This has led the company to pursue a more in-depth and formal feasibility study.

As part of its efforts, Meralco confirmed it has formed a strategic partnership with France’s state-owned Electricité de France SA to evaluate the viability of producing nuclear energy in the Philippines.

The new alliance came after Meralco ended its collaboration with US-based Ultra Safe Nuclear Corp.

Meralco closed 2024 with a record-breaking momentum after it posted an all-time high consolidated core net income of P45.1 billion — a 22-percent year-on-year increase that surpassed its P40-billion profit guidance and validated its bullish outlook.

The surge was driven by strong performance across key business segments.

Distribution utilities remained the backbone, contributing 62 percent of earnings, followed by power generation at 24 percent. Emerging ventures in renewable energy and non-power businesses contributed 14 percent.

Gross revenues rose 6 percent to P470.36 billion, while costs and expenses increased at a slower 4 percent to P425.33 billion, highlighting effective cost management amid rising operational demands.

This year, Pangilinan said Meralco is eyeing a 10-percent profit growth, targeting up to P50 billion in core net income.