Meralco eyes Pampanga distribution utility

By Danessa O. Rivera (The Philippine Star) | Updated October 31, 2015 - 12:00am

http://www.philstar.com/business/2015/10/31/1516626/meralco-eyes-pampanga-distribution-utility

MANILA, Philippines - Manila Electic Co. (Meralco), the country’s biggest electricity retailer, is eyeing another distribution utility (DU) in Pampanga continuing the expansion of its distribution network in other areas of the country.

“We’re looking at DUs in the provinces. [It’s] quite a number we’re looking at,” Meralco chairman Manuel V. Pangilinan said.

“Probably another Pelco (Pampanga Electric Cooperative),” he added.

Securing a new DU will likely take place next year, Pangilinan said.

Data from the National Electrification Administration (NEA) showed there are four electric cooperatives (ECs) in Pampanga, namely: Pampanga Rural (Presco), Pelco I, Pelco II and Pelco III.

In 2014, Meralco slowed down on acquisitions to focus on the rehabilitation of a debt-ridden electric cooperative in Pampanga, Pelco II.

http://www.philstar.com/business/2015/10/31/1516626/meralco-eyes-pampanga-distribution-utility

Last year, it signed a technical services agreement with Comstech Integration Alliance Inc. for the investment and management contract of Pampanga Pelco II as authorized by the NEA.

Comstech manages and operates the said Pampanga EC.

Meralco has been tapped to upgrade the power distribution system of Pelco II, distributor of electricity to the city of Mabalacat and towns of Guagua, Bacolor, Sta. Rita, Lubao, and Porac.

Meralco’s entry into Pelco II was firmed up after it acquired 60 percent of Comstech last February.

Last Sept. 30, Pelco II has settled its outstanding obligation with state-run Power Sector Assets and Liabilities Management Corp. (PSALM) amounting to P1.095 billion.

Following this development, Meralco resumed exploring opportunities and talks with potential DUs and ECs, company president Oscar S. Reyes said earlier.

The power distributor has been scouting for opportunities on growing its electric distribution area in North Luzon and South Luzon through acquisitions of ECs and private DUs.

Currently, Meralco’s franchise area covers over 5.7 million customers in Metro Manila, Bulacan, Cavite and Rizal, as well as certain areas in Batangas, Laguna, Pampanga and Quezon.