Upgrades reduce Meralco’s technical losses—COO Aperocho

MANILA, Philippines — The Manila Electric Co. (Meralco) has significantly reduced technical losses in its distribution system through the deployment of more efficient transformer technologies, helping bring system losses down to 5.85 percent in 2025.

“While we cannot completely eliminate system losses in power distribution, but we can minimize it,” Meralco executive vice president and chief operating officer Ronnie Aperocho told members of the Senate Committee on Energy at the joint hearing with Public Service on Thursday.

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Over the years, Aperocho said Meralco has pursued various projects and programs to minimize system losses. He added that Meralco has technically vetted these initiatives, supported them with data, and prioritized their cost-benefit impact on consumers.

One example, according to the Meralco official, is the utility’s shift to amorphous-core distribution transformers, particularly those installed on their posts—which have significantly reduced overall core losses by 70 percent.

Aperocho further explained that unlike conventional silicon-steel transformers, amorphous-core transformers significantly reduce core losses—the energy a transformer loses even at little or no load.

He added that Meralco has deployed the technology across its entire franchise area. And the technology, according to Aperocho, has helped in reducing technical losses to 3.39 percent last year.

Though investments are about 3 percent higher than previous technologies, Aperocho said its benefits to the company and eventually to customers outweigh these costs—as these transformers have helped reduced technical losses (distribution level) by 14 percent.

Based on Meralco’s 2025 operating performance, system losses stood at 5.85 percent, a 14-percentage-point improvement from 5.99 percent in 2024. The Energy Regulatory Commission’s (ERC) system loss cap for private distribution utilities is 6.5 percent.

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Another example, Aperocho shared was Meralco’s adoption of higher efficiency standards for power transformers that it procures. Its standard requires an efficiency rating of at least 99.7 percent for power transformers or those installed in their substations.

While higher-efficiency transformers carry a higher initial price, he noted that Meralco evaluates its purchases based on total cost of ownership rather than simply their acquisition cost. “These savings eventually offset the higher upfront investment while reducing electricity losses and minimally benefit customers over the equipment’s lifespan,” Aperocho said. INQ