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.

DRIVING ENERGY SECURITY THROUGH RENEWABLES, INNOVATION

Meralco ensures energy security through sustainable initiatives even beyond its core distribution business. Its power generating arm, Meralco Powergen Corp. (MGEN), is accelerating the shift to renewables with projects

Strategic collaborations are essential to accelerate the transition to clean energy. From the signing of a memorandum of understanding last June, MGEN and Saudi Arabia-based ACWA Power charted their joint renewable energy strategy — entailing the development large-scale solar and other projects with up to 1,700 MW of potential capacity across the Philippines, which was formally presented to President Ferdinand R. Marcos Jr. in August.

MGEN also advanced its 49-MW Battery Energy Storage System (BESS) in Toledo, Cebu with a signed engineering, procurement and construction contract with Contemporary Amperex Technology Co., Limited and SUMEC Complete Equipment and Engineering Co., Ltd. The first 25-MW capacity is set to go live by Q2 2026, with full completion by 2027 — marking a major step toward grid stability and renewable integration in the Visayas region.

Meanwhile, MGEN’s subsidiary Terra Solar Philippines Inc. (MTerra Solar) marked steady development milestones as its overall project completion of Phase 1 reached 65 percent as of 15 October 2025. Similarly, key components along the project’s critical path continued to progress, including transmission towers (100 percent secured), corridor access (82 percent secured) and connecting land for Phase 1.

CHAMPIONING SUSTAINABILITY AND SOCIAL IMPACT

As Meralco continues to power the nation, it also deepens its commitment to building a more sustainable, inclusive, and resilient future for the communities it serves.

The power distributor strengthened its leadership in sustainability and inclusion with two major milestones: maintaining its place in the FTSE4Good Index for the fifth consecutive year, and boosting its Bloomberg Gender Equality Score to 4.6 in 2025 from 4.1 in 2024 — driven by greater transparency and increased representation of women in management.

Beyond its core role of mandate delivering electricity, Meralco also extends its through One Meralco Foundation (OMF) whose initiatives are centered in uplifting underserved communities within and beyond Meralco’s franchise area.

The Foundation has been making valuable impact by energizing low-income households, distributing solar lamps to frontliners, and supporting education through programs like Balik Eskwela.

In the third quarter, OMF energized 1,459 low-income households in different parts of the Meralco franchise area. Meanwhile, it distributed 373 solar lamps to forest rangers, farmers, fisherfolk in different provinces, and soldiers stationed in the West Philippine Sea through its Light Up Pilipinas program.

Apart from lighting homes, OMF also champions education and digital access. Through its Balik Eskwela program, it provided 5,517 school backpacks to kindergarten students in 69 public schools during the quarter. It also donated 54 computer sets to the Philippine National Police, Bureau of Fire Protection, Philippine Army’s Reserve Command Training School, various municipal offices in Cavite, and public schools in Batangas and South Cotabato in support of digitization efforts.

When disasters strike, Meralco lights the way forward, not only through power restoration, but also through timely aid and compassionate action. In the third quarter, OMF extended aid to around 6,231 families that were affected by typhoons, fires, and earthquakes within and beyond its franchise area.

On greening the environment, an additional 3,015 native trees were planted through the One For Trees program at the UP Laguna-Quezon Land Grant with volunteers from Radius, MPower, and their partners

“As we advance these efforts, we stay true to our purpose of serving not only our customers, but also the communities beyond our franchise who need our support the most through One Meralco’s social development and nation-building initiatives,” Pangilinan said.

With a unified roadmap for a just, orderly, and affordable transition to cleaner energy, Meralco is not only powering homes and businesses — it is building the foundation for a secure, sustainable, and inclusive energy future for the Philippines.