MVP: Meralco finding ways to bring down power costs

MANILA, Philippines — Power utility giant Manila Electric Co. remains dedicated to lowering power prices in its franchise area, which comprises Metro Manila and nearby provinces, Meralco chairman and CEO Manuel V. Pangilinan said yesterday.

“I hope we are able to bring down power prices, at least on the distribution side. We don’t make money on the generation side, but we get the brunt of the criticisms,” Pangilinan said at the Giga Summit 2025 in Makati City.

Meralco, which recently secured the approval of President Marcos for its 25-year franchise extension, intends to invest heavily in the modernization and expansion of its distribution network, making it more resilient to climate-related disruptions.

“It is in our interest to bring power rates down. We are looking for ways to do that,” the Meralco chief said.

Pangilinan also highlighted Meralco’s initiatives to roll out power projects to reinforce the country’s supply amid growing power demand.

The Meralco Group, through Terra Solar Philippines, is currently developing the P200-billion MTerra Solar in Central Luzon, which is poised to become the world’s largest integrated solar and battery storage facility.

Upon full completion in 2027, the project is expected to power around 2.4 million households and boost the government’s target of increasing the share of renewables in the energy mix to 35 percent by 2030 from the current 22 percent.

Further, Meralco has joined forces with French state-run power giant Electricité de France SA to unlock the potential of nuclear energy in the Philippines.

“We’re touching base with a number of countries familiar with nuclear energy like France,” Pangilinan said. “We’re talking to the US government on how we can get assistance in terms of nuclear energy in this country.”

All these initiatives, he said, are shaping how the Meralco Group does business in the country.

“The social aspects of our businesses are very important to us. We love our people, and we love our country. It is very central to what we do that we do not harm our people with the activities we do,” he said.

“In that regard, we cannot discharge our role as stewards of our assets and as stewards of the money entrusted to us without the help of everybody – without the help of the government, without the help of our stakeholders,” he added.

Speaking at the same event, Energy Secretary Raphael Lotilla highlighted Meralco’s “primordial role” in the country’s power sector.

“Meralco’s demand of nearly 9,000 megawatts accounts for half of the entire country’s power demand and 70 percent of Luzon’s demand. The gross domestic product of Meralco’s franchise area is estimated to be 48 percent of the country’s GDP and 69 percent of Luzon’s,” Lotilla said.

Lotilla also commended Meralco for its technological capabilities, especially during disaster response, and for becoming a leader in diversifying energy sources.

The energy chief, however, called on Meralco and other distribution utilities to serve the public “far beyond the borders of its franchise area.”

“In this way, as we confront the dual challenges of energy security and affordability, we can step up to the challenge. This remains my main message to Meralco,” Lotilla said.