Meralco expanding nationwide

Manila Standard Today
By Alena Mae S. Flores | May. 29, 2014 at 12:01am

Manila Electric Co., the country’s biggest power distributor, plans to expand its electricity distribution network beyond its franchise area to include other parts of Luzon, Visayas and Mindanao.

Meralco president Oscar Reyes said the distribution company planned to expand in areas that required stable supply of electricity. “On growing our electric distribution service area, there exist areas in the country where development is hampered due to lack of reliable and reasonably-priced electricity,” Reyes told reporters.

Meralco also disclosed to the stock exchange it recently signed a 25-year concession agreement with the Philippine Export Processing Zone Authority for the operation and maintenance of the power distribution facilities in the Cavite Ecozone up to May 2039.

Meralco said under the agreement, it would provide distribution utility services within the Cavite Ecozone area, as well as invest a total of P300 million for the improvement of the power distribution system and customer service facilities at the ecozone during the 25-year period.

Cavite Ecozone is the largest Peza-owned ecozone and is home to around 400 multinational industrial and commercial locators and is located 30 minutes away from Manila in Rosario, Cavite.

“The agreement leverages Meralco’s more than 100 years of experience in electricity distribution and customer-centered service in support of Peza’s vision of moving CEZ close towards being a world-class investment destination,” the company said.

Meralco officials have earlier expressed interest to expand operations through the acquisition of distribution utilities or electric cooperatives. Reyes said Meralco was pursuing opportunities in these areas to bring the distributor’s resources and track record of performance to the benefit of the consumers and their communities.

Reyes said Meralco was looking at distribution utilities and electric cooperatives in more provinces, from Pampanga all the way to La Union. He said the company was also scouting parts of Laguna where the company was not yet present to Batangas.

“And as far as parts of Visayas and Mindanao. Our objective is if, there areas where Meralco can be of value because we have the resources, we have the track record, we have the experience. Because if there are already utilities there, private DUs or ECs doing a good job there, there’s no way Meralco can contribute. In that way we help improve the countryside, we help improve the communities because we observed that when we go to certain areas, other businesses follow,” Reyes said. source