As the Philippines moves toward a more secure and sustainable energy landscape, Meralco is taking bold steps to future-proof its operations and ensure reliable service for millions of customers.

The recent approval by the Energy Regulatory Commission (ERC) of the Rationalized Rules for Setting Distribution Wheeling Rates (RRDWR) under the Performance-Based Regulation (PBR) framework marks a pivotal moment for the industry. 

FUTURE PROOFING THE GRID

For Manila Electric Company (Meralco), this development enables the long-awaited rate reset, which has not occurred in over a decade, and opens the door for major investments in smart grid technology, network resiliency and cybersecurity.

These initiatives are not just technical upgrades — they are strategic moves to strengthen the country’s energy security and prepare for the demands of a rapidly evolving economy. 

The First Regulatory Period (1RP), which runs from July 2026 to June 2030, will allow Meralco to file its application for Annual Revenue Requirement (ARR) and Performance Incentive Scheme (PIS), ensuring that resources are aligned with the goal of delivering even more reliable and efficient service.

“We recognize recent positive industry developments, including the ERC’s issuance of rules that enable distribution utilities like Meralco to undergo a rate reset, which we have not obtained in the past 10 years. The timely implementation of the 1RP is essential for us to move forward with major investments on smart grid, network resiliency and system improvement, and cybersecurity, among others — which will update and future-proof our operations, resulting in even more reliable service to our growing number of customers,” Meralco chairman and president Manuel V. Pangilinan said. 

STRENGTHENING THE NETWORK THROUGH INVESTMENTS

Meralco has been continuously investing to future proof its distribution network by reinforcing the backbone of the grid to support the delivery of sufficient, reliable, and stable electricity service to customers.

In the third quarter alone, Meralco added 300 megavolt amperes (MVA) of additional capacity through major capital expenditure (CAPEX) projects including the installation of a third 300 MVA power transformer bank in Calamba Delivery Point Substation in Laguna and uprating of 115 kV power circuit breakers at Gardner Substation in Muntinlupa City. 

The upgraded Calamba Delivery Point Substation strengthens the reliability and stability of electricity service in parts of Laguna and Batangas. This upgrade will support the growing power demand of key establishments including SM City Calamba, SM City Sto. Tomas, Mariwasa-Siam Ceramics Inc., Calamba Doctor’s Hospital, Philippine Manufacturing Co. of MURATA Inc., STMicroelectronics Inc. and Samsung Electro-Mechanics Philippines Corporation, as well as the neighboring communities in the area. 

Meanwhile, the uprated circuit breakers at Gardner Substation allow the facility to handle higher electricity loads as Meralco expands its network and connects future power sources in the cities of Muntinlupa, Taguig, and Parañaque.

These strategic upgrades ensure that the growing demand from its 8.2 million customers as of end-September is met with stable and sufficient electricity supply.

In addition, these also enhanced Meralco’s power service delivery —resulting in fewer and shorter outages for customers. By end-September, the System Average Interruption Frequency Index (SAIFI), which measures the number of power interruptions per customer, dropped to 0.762 times from 0.842 in the same period last year. Similarly, the System Average Interruption Duration Index (SAIDI), which tracks the average outage duration per customer, improved to 80.576 minutes from 87.843 minutes.

Meralco also supports the Government’s infrastructure development initiatives, relocating 52 poles for various Build, Build, More projects, and 214 poles to facilitate road widening projects of the Department of Public Works and Highways during the quarter.

POWERING CUSTOMER CHOICE THROUGH INNOVATION

Meralco is also committed to drive customer-centric initiatives that empower Filipino consumers through investments in smart technologies and strategic initiatives that enhance grid and network resilience.

Investments in back-end architecture and advanced metering infrastructure (AMI) ensure the seamless implementation of retail aggregation program (RAP), a customer choice program of the ERC which allows multiple end-users within the same franchise area whose individual consumption is below the 500-kilowatt threshold to join Retail Competition and Open Access (RCOA) to form an aggregated group and choose their own electricity supplier.

To accelerate its smart grid modernization efforts, Meralco partnered with US-based Itron Inc., a global leader in smart energy solutions, to deploy the latter’s AMI solution to build a more responsive, customer-focused energy system.

By deploying Itron’s AMI solution, which enables smart metering and supports grid edge and smart city applications, Meralco will enable near real-time, two-way communication between its operations and customer endpoints — allowing for faster outage detection and restoration, improved billing accuracy, and greater transparency in energy consumption.

 As part of the initial rollout, Itron’s AMI solution will manage 73,000 endpoints across Metro Manila, with plans for a multi-year expansion to cover the rest of the areas serviced by Meralco.

“This collaboration is pivoted in our AMI journey. With Itron’s Gen5 solution, we are building a smart grid that not only supports the country’s push toward advancing the digital economy but also enhances Meralco’s customer-centricity through improved billing services, greater customer visibility into their energy use, and improved response times to outages,” Meralco executive vice president and chief operating officer Ronnie L. Aperocho said.

As energy security begins with empowering customers, Meralco also continuously rolls out customer programs that will provide accessibility and convenience.

It expanded payment access for disconnected accounts by allowing customers to settle their dues at all Bayad outlets that accept Meralco transactions. This initiative complements existing payment channels such as Meralco Business Centers and the My Meralco App, further enhancing accessibility and convenience for customers while enabling faster payment processing and service reconnection.