Meralco investment approved by ERC

Business World Online
Posted on July 16, 2014 09:53:23 PM

MANILA Electric Co. (Meralco) has secured regulatory approval to implement a P382.86-million project intended to upgrade its distribution network.

The Energy Regulatory Commission (ERC), in a decision dated May 5 and released late Tuesday, authorized Meralco to implement an advanced distribution management system (ADMS) and other components associated with the project.

Meralco, in the document, said its outage management process -- supported by its operating trouble management system (OTMS) -- is a critical component of its distribution network.

However, the OTMS has been in operation for 15 years and its vendors have decided to discontinue the sale of key components.

Meralco said an ADMS will integrate the function of an outage management system and distribution management system.

The project -- which is estimated to cost P382,863,094 -- will have an implementation period of 21 months.

“With the implementation of the ADMS, the commission expects several improvements in Meralco’s outage management process, particularly, on service restoration,” the decision read.

“The commission finds that the immediate effect of a fully operational ADMS will be an improved forced outage restoration process. This translates to a more efficient distribution system resulting to better service to the customers,” it added.

The regulator further said that the target rollout of the project is June 2015 and the project needs to start immediately to reduce the risk posed by the current OMTS and avoid the additional cost of maintaining an obsolete system.

“Thus, the commission deems it appropriate to approve the… application to allow Meralco to immediately start the development stage of the ADMS project and complete the same on schedule…” the commission added.

Meralco said in December that it will invest P15.6 billion in capital expenditures this year -- against P11 billion a year earlier -- to accommodate greater customer numbers and improve its distribution service.

Meralco distributes electricity in Metro Manila, Bulacan, Cavite and Rizal, as well as parts of Batangas, Laguna and Quezon.

Through Clark Electric Distribution Corp., the company also provides electricity to more than 1,000 industrial customers in Clark Freeport Zone in Pampanga. -- Claire-Ann Marie C. Feliciano source