(The Philippine Star) | Updated June 5, 2017 - 12:00am
MANILA, Philippines -
Power distributor Manila Electric Co. (Meralco) is earmarking over P18
billion in capital expenditures (capex) to expand and upgrade its network in
2018 to meet the growing power needs in its franchise area.
Meralco filed with the
Energy Regulatory Commission (ERC) for the approval of its P18.36 billion capex
for Regulatory Year 2018, or from July 1, 2017 to June 30, 2018.
In its filing, the
power distributor listed 18 major projects with a total cost of P6.07 billion,
most of which involve the expansion and development of new substations, as well
as the upgrading and construction of new distribution lines.
These projects will
allow the company to serve current customers and their future needs, as peak
demand and customer base are forecasted to grow 3.9 percent and 3.7 percent,
respectively.
“This increase in peak
demand and customer count will require Meralco to increase the capacity of the
electric distribution system in order to accommodate customer connections while
maintaining the reliability and power quality of its distribution system,” the
application read.
The largest component
among the major projects is the expansion of Meralco’s Advanced Metering
Infrastructure at P2.43 billion. This project covers the automation of its
distribution network which will result in faster response to line and network
outages and thereby reduce service interruptions to customers.
To support government
infrastructure projects, Meralco has allocated P385.97 million for the
relocation of its electrical facilities affected by the construction of
government’s public-private partnership (PPP) projects.
Meralco’s 2018 capex
also includes spending for 82 residual projects amounting to P12.29 billion
mostly for the improvement, rehabilitation of facilities and IT assets.
Last year, Meralco had
asked for the approval of its P15.4 billion capex for 23 major projects and 83
residual projects. However, the ERC only gave provisional authority for
priority projects – nine major projects and 37 residual projects – in the
amount of P8.76 billion.
This is to allow
Meralco to implement prioritized projects to ensure its ability to provide
continuous safe and reliable service to its customers.
The power regulator has
yet to decide on Meralco’s whole spending application for 2017.
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