Published March 20, 2019, 10:00 PM By Myrna M.
Velasco
With its rolling capital
expenditures (capex) just securing partial regulatory approval for P24.2
billion, power utility giant Manila Electric Company (Meralco) said it will
continually hope for go-signal on the P48.4 billion balance of the capital
spending it applied for.
Meralco said it sought total capex
of P73 billion on its regulatory period which will wind up June this year – yet
only P24.2 billion had been approved so far.
Last year, documents from the
utility firm had shown that its capital outlay reached P13.7 billion, higher by
13-percent from the previous year’s P11.9 billion.
Further, the utility firm manifested
its need for emergency capex of P10 billion “for projects that need immediate
implementation” – that as an interim arrangement while awaiting the approval of
the Energy Regulatory Commission.
The company similarly sought capex
requirements for its Clark Electric Distribution Corporation (CEDC) in the
amount of P1.7 billion – capital spending that is still part of that utility
firm’s third regulatory reset under performance based-rate setting of the
deregulated power sector. CEDC is 65-percent owned subsidiary of Meralco.
For CEDC, it also pleaded to the ERC
for its emergency capex requirement of P198.5 million – of which P164.7 million
of that programmed spending had already been completed.
Meralco explained its need for
increased capex was driven by continuing expansion on customer count and load
growth – a hike in demand propelled also by the “Build, Build, Build”
development platform of the Duterte administration.
On load growth, Meralco indicated
that its “south sector” is expected as the next growth area – underpinned
generally by brisk tourism activities.
“With airlines offering affordable
travel rates, the year also saw growth in the hotel industry brought about by
the steady inflow of tourists from the United States, China and South Korea,”
the distribution firm said.
Meralco added “growth is also
notable from domestic tourism ‘staycations’ which have become popular with
locals for extended weekends or holidays.” The utility firm likewise noted that
“new township developments and technology for online services contributed to
the growth of retail trade – with the ramp up of existing mixed use malls
catering particularly to millennials who want to live, work and be entertained
in the same location.”
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