DoE prods Meralco rate cut post-extension

The Manila Electric Co. (Meralco) franchise extension is not without its strings attached — it comes with a clear call to action. 

Following the approval of its 25-year extension, the Department of Energy (DoE) on Thursday challenged the power giant, urging improvements in its delivery of affordable and reliable electricity.

“Electricity is a public necessity vital for every aspect of our economy and society and central to the government’s goal of equitable national development.  In this context, Meralco has a primordial role as the country’s largest and most significant distribution utility,” Energy Secretary Raphael Perpetuo Lotilla said during a summit hosted by Meralco.

Citing DoE data, Lotilla pointed out the scale of Meralco’s operations, which serve over 7.8 million customers across 39 cities and 72 municipalities, covering nearly 10,000 square kilometers. 

“This is five times larger than the combined area covered by our two largest water utilities, which is less than 2,000 square kilometers,” he said. 

Covering half of total pie

Meralco’s power demand of almost 9,000 megawatts accounts for half of the country’s total power consumption and 70 percent of Luzon’s.

Despite Meralco’s dominance in the sector, Lotilla raised concerns about its pricing structure. 

“Nearly half of its power comes from affiliates. Meralco does not have the cheapest power rates when compared with other DUs and PCs,” he said, emphasizing the need for more competitive pricing.

Meralco’s chairman and CEO, Manuel V. Pangilinan, acknowledged the company’s responsibility as a significant economic driver.

“The social aspects of our businesses are fundamental to us. We love our people and we love our country. It is very central to what we do that we do not harm our people with the activities we do,” Pangilinan said.

“In that regard, we cannot discharge our role as stewards of our assets and as stewards of the money entrusted to us without the help of everybody, the help of the government, and the help of our stakeholders. We have to cooperate; we have to progress this country.”