Meralco eyes more investments in electric cooperatives
MANILA -Power distributor Manila Electric Co. (Meralco) needs to broaden its investments in electric cooperatives to widen its footprint across the country and ensure reliable power supply in the provinces, its top official said.
Tycoon Manuel Pangilinan, who also chairs the country’s largest power retailer, explained that the company’s distribution was limited within its franchise area and that it should maximize its generation efficiency by expanding to other locations.
“There are key areas where electric cooperatives have to level up to the kind of standards and efficiencies Meralco, as a distribution company, has achieved,” Pangilinan said. He did not identify the target electric cooperatives.
“We might be efficient on the generation side of the business, but Meralco’s footprint is limited to our franchise area,” he added.
Meralco currently operates within Metro Manila and nearby provinces, including Rizal, Cavite and Bulacan. It also covers parts of Pampanga, Batangas, Laguna and Quezon provinces.
Sought for comment, Meralco said it did not have data on its total investments in electric cooperatives.
In 2014, Meralco and its local partner Comstech Integration Alliance Inc. took over Pampanga Electric Cooperative II (Pelco II).
The two companies submitted a winning P1.2-billion bid for the investment and management contract of Pelco II, which was authorized by the National Electrification Administration.
Pelco II provides power to seven towns and municipalities in Pampanga, namely: Mabalacat, Guagua, Lubao, Porac, Sta. Rita, Sasmuan and Bacolor.
The following year, Meralco disclosed that it had subscribed to P300 million worth of shares in Comstech.
Under the deal, Meralco agreed to subscribe to 3 million new shares to be issued by Comstech at P100 per share.
Meralco’s subsidiary, Clark Electric Distribution Corp., also exclusively sells power within the Clark Special Economic Zone.
