BATELEC II pressed over stalled Meralco joint venture proposal

The provincial government has called on Batangas II Electric Cooperative (BATELEC II) to explain the three-year delay in acting on a joint venture proposal from Manila Electric Co. (Meralco), amid continuing power outages in parts of the province.

During a public hearing on 27 February 2028, led by the Sangguniang Panlalawigan Committee on Transportation, Communication and Public Utility chaired by Board Member Melvin Vidal with Vice Chair Board Member Alfredo Corona, officials raised concerns over service reliability within BATELEC II’s franchise area.

The inquiry stemmed from a resolution filed by the Batangas Forum for Good Governance and Development Association, Inc., urging the provincial government to support a proposed joint venture between Meralco and BATELEC II.

In a letter, forum president Nelson Terrible cited repeated outages that he said have caused economic losses for businesses and disrupted daily life for residents. The group also called on BATELEC II management to fully disclose the status of its operations and outline concrete plans to improve electricity service.

At the hearing, forum member Rey Corona said the group’s position is anchored on making electricity supply more predictable to support business activity in the province.

It was disclosed during the discussion that Meralco submitted its joint venture proposal to BATELEC II three years ago.

Meralco Senior Vice President Arnel Casanova said the proposal is not a takeover but an investment partnership intended to upgrade facilities and infrastructure. He said Meralco is prepared to invest billions of pesos to improve distribution systems, which he argued would benefit member-consumer-owners through more reliable service.

Casanova also noted that Meralco currently operates in Sto. Tomas, Batangas City and San Pascual, which he described as among the province’s most economically active areas.

BATELEC II representative Engr. Mary Ann Dimaano said a technical working group is drafting the terms of reference for the project. She added that the cooperative has received proposals from three companies: Meralco, Aboitiz and Prime.

Dimaano said management is studying the proposals and considering the sentiments of member-consumer-owners before making any decision.

Vice Governor Hermilando “Dodo” Mandanas raised questions about BATELEC II’s long-term capacity, particularly as its current franchise is set to expire in 2030. He pointed out that once renewed, the cooperative would secure its franchise directly from Congress and would no longer operate under the supervision of the National Electrification Administration.

Mandanas asked whether BATELEC II, on its own, could deliver the same level of service as other potential franchise holders, especially without government supervision.

BATELEC II’s Domingo responded that the cooperative is preparing the necessary documents for its franchise application and remains optimistic about a favorable outcome.

While acknowledging that BATELEC II is the largest electric cooperative in the country, Mandanas said there is still room to improve service efficiency, adding that infrastructure readiness would be a key consideration in evaluating proposals.

In a separate interview, Vidal said the hearing aims to address service concerns and ensure that any potential partnership would ultimately benefit consumers.