Meralco keen to buy electric co-ops, distribution utilities

Business Mirror
28 May 2014 Written by Lenie Lectura

POWER distributor Manila Electric Co. (Meralco) is seriously looking into expanding its presence outside of its franchise area by acquiring distribution utilities (DUs) and electric cooperatives (ECs).

“We are looking for new opportunities in new areas,” said President Oscar Reyes. In particular, Reyes said the utility firm is “looking [for investment opportunities] in the north from Pampanga all the way to La Union. In the south, from parts of Laguna to Batangas.”

Meralco, the country’s largest electric power distribution company, has been scouting for prospective acquisitions to expand presence in the distribution sector.

Reyes said Meralco’s interest could go “as far as parts of the Visayas and Mindanao.” “There are areas where Meralco can be of value because we have the resources; we have the track record; and we have the experience. The objective is to be able to improve the service where we can and provide reliable and least cost of electricity,” said the Meralco official.

He said Meralco will not acquire another distribution utility if it’s already doing a good job in its assigned franchise area. “If there are already private DUs and ECs doing a good job there then what else can Meralco contribute?”

The utility firm has a franchise service area covering 9,337 square kilometers and distributes power to over 5 million customers in 34 cities and 77 municipalities in Metro Manila, the provinces of Rizal, Cavite and Bulacan, and parts of the provinces of Pampanga, Batangas, Laguna and Quezon. It supplies power to about 75 percent of the power in Luzon and 55 percent of the whole country. Last year Meralco Chairman Manuel V. Pangilinan said there are ongoing negotiations with prospective DUs and ECs. source