Meralco Eyes Expansion Beyond Metro Manila, Exploring Albay Venture

Tycoon Manuel V. Pangilinan’s Manila Electric Co. (Meralco) is exploring a potential expansion into Albay province, a move that could extend its reach beyond Metro Manila and nearby provinces. The potential move comes after local officials in Albay sought Meralco’s assistance in addressing persistent power reliability issues that have frustrated consumers in the province. Meralco chief external and government affairs officer Arnel Casanova said several mayors reached out to the company, citing frequent outages and the challenges these disruptions pose to attracting new investments. “They were having difficulty because businesses that are planning to move into their municipalities are unable to invest due to the unreliability of power,” Casanova said in an interview. The Albay Electric Cooperative (Aleco) currently serves as the province’s power distributor. Casanova said Meralco has been encouraged to look into Albay and assist Aleco in improving its services, hinting at the possibility of submitting an investment proposal. “Hopefully, Aleco will be welcoming us to provide us with the necessary information so we could make a better proposal,” he said. Meralco, the country’s largest power distribution company, serves more than eight million customers within its franchise area comprising Metro Manila and nearby provinces. As part of its growth and expansion strategy, the company has been pursuing joint venture opportunities with electric cooperatives across the country. Among its targeted partnerships are electric cooperatives in Batangas and South Cotabato, where Meralco seeks to invest to improve their power distribution services. Casanova, however, clarified that the company’s proposed partnership would not involve a takeover. Meralco will enter as an investor with an effective control of the board, while the electric cooperative would continue to manage day-to-day operations within its service area. “If the people managing it are already capable, then we will just upgrade their capabilities. We are not taking over the cooperative; we are going to empower them,” Casanova said.