By Myrna M. Velasco
Published: June 10, 2013
Reyes
Dominant power utility firm Manila Electric Company (Meralco) is building an empire on the distribution segment of its business with planned expansions in Visayas and Mindanao grids.
Meralco president Oscar S. Reyes indicated that the company has been scouring for prospects – not only along its neighboring service areas in Luzon, but on a nationwide basis.
“We’re looking for opportunities… basically in Luzon, but we don’t discount looking at ECs (electric cooperatives) in Visayas and Mindanao – areas where electricity service is really quite a challenge – cooperatives or small private DUs (distribution utilities),” he said.
He added “we’re open to first of all here (in Luzon), to increase our presence in areas where there is either lack of power or price is quite challenging.”
The business expansion strategy, Reyes noted, will be anchored on Meralco being “able to deliver value to customers and we have to be welcomed, I think that’s a basic criteria for successful expansion of our distribution business.”
At its current franchise area, Meralco has been serving more than 5.2 million customers; and it is hoping to grow this with the planned spread of its distribution service to other parts of the country.
The overseas power market is another investment field that is very much in the radar of the utility firm – such as its kick-off distribution venture in Nigeria.
Meralco first hinted plans of tapping power generation ventures in Mindanao as part of its expansion. Basically, the electricity generation segment of its business has to be unbundled from its power distribution activity – based on the rules laid down by the Energy Regulatory Commission (ERC) and as provided under the Electric Power Industry Reform Act.
Reyes reiterated that the company has been looking at “bringing the Meralco brand of excellent service and our operational expertise beyond our franchise area, to other areas in the country where we can help create value for those customers and communities.”
The distribution firm will be spending P12.8 billion for its capital expenditures (capex) this year, of which a significant part will be earmarked for system performance and reliability.
The next ones in its business plan will be its foray into the open access market as a local retail electricity supplier (RES) via its MPower brand; and its technical-to-commercial pilot of prepaid electricity service.
“MPower continues to negotiate with other IPPs (independent power producers) for additional volume to provide customer-centric products and service offerings to contestable customers with varying load profiles, service and pricing preferences,” the utility firm said. source
Meralco president Oscar S. Reyes indicated that the company has been scouring for prospects – not only along its neighboring service areas in Luzon, but on a nationwide basis.
“We’re looking for opportunities… basically in Luzon, but we don’t discount looking at ECs (electric cooperatives) in Visayas and Mindanao – areas where electricity service is really quite a challenge – cooperatives or small private DUs (distribution utilities),” he said.
He added “we’re open to first of all here (in Luzon), to increase our presence in areas where there is either lack of power or price is quite challenging.”
The business expansion strategy, Reyes noted, will be anchored on Meralco being “able to deliver value to customers and we have to be welcomed, I think that’s a basic criteria for successful expansion of our distribution business.”
At its current franchise area, Meralco has been serving more than 5.2 million customers; and it is hoping to grow this with the planned spread of its distribution service to other parts of the country.
The overseas power market is another investment field that is very much in the radar of the utility firm – such as its kick-off distribution venture in Nigeria.
Meralco first hinted plans of tapping power generation ventures in Mindanao as part of its expansion. Basically, the electricity generation segment of its business has to be unbundled from its power distribution activity – based on the rules laid down by the Energy Regulatory Commission (ERC) and as provided under the Electric Power Industry Reform Act.
Reyes reiterated that the company has been looking at “bringing the Meralco brand of excellent service and our operational expertise beyond our franchise area, to other areas in the country where we can help create value for those customers and communities.”
The distribution firm will be spending P12.8 billion for its capital expenditures (capex) this year, of which a significant part will be earmarked for system performance and reliability.
The next ones in its business plan will be its foray into the open access market as a local retail electricity supplier (RES) via its MPower brand; and its technical-to-commercial pilot of prepaid electricity service.
“MPower continues to negotiate with other IPPs (independent power producers) for additional volume to provide customer-centric products and service offerings to contestable customers with varying load profiles, service and pricing preferences,” the utility firm said. source
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