Earning public trust as a power distribution utility

When we say “consume,” food and other basic items easily come to mind. These are things we need and use up. We may not have enough of them financial resources are low, and we may run out of them if there is not enough supply or if we consume them unwisely.

But there’s something else we consume that has a profound impact on us as individuals and as a society: energy.

For individuals, power—most tangibly experienced as electricity—shapes and improves our quality of life. It powers everything from our basic needs to the technologically complex systems of industries. It makes modern comforts possible.

Imagine our routines thrown off by costly or unreliable electricity. We take for granted that our homes, workplaces, and schools will function properly. We plan our days assuming that all the time, power will be there.

We even conduct democratic activities, for example the May 12 midterm elections, on the assumption that power will be available and uninterrupted so that automated election system will deliver the results that will truly reflect the will of the people.

A single outage—or worse, recurring blackouts—can spark a political crisis, casting doubt on the process, eroding public trust, and threatening the legitimacy of the elections.

Meanwhile, for entire communities and the nation, for that matter, energy drives economic activity and progress.

A recent study by the Department of Energy revealed that expanding electricity access to low-income families in the Philippines has a direct and significant impact on improving their lives. According to the study, even modest increases in daily electricity access can drive notable growth in household income and spending.

In particular, providing low-income households with up to eight hours of electricity per day can increase their average annual income by 15.8%, while boosting their household expenditure by 14.8%.

Extending access further to 8 to 16 hours daily raises income by 33.4% and expenditure by 32.7%. Most strikingly, ensuring 16 to 24 hours of electricity access can result in a 56.3% surge in income and a 59.4% jump in consumer spending.

Conversely, economic targets mean nothing if there is not enough reliable power to support the activity of industries and produce output to viably supply its markets.

These figures tell a clear story: electricity is not just a convenience—it’s a catalyst for economic opportunity and a better quality of life. When families have reliable power, they can become more productive, earn more, and, most importantly, have more to spend on basic needs like food, clean water, and medicines.

Access to electricity means parents can put more food on the table, support their children's nutrition, and live with greater dignity and security. And energy security, a nation can drive economic growth, focus on its priorities, and execute a clear strategy towards sustained prosperity.

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On April 11, President Marcos Jr. signed into law the bill renewing the franchise of the Manila Electric Company (Meralco) for another 25 years. For the 7.75 million customers across its 9,685-square-kilometer franchise area, this is not just another legal formality—it’s a renewed mandate, a challenge to Meralco to deliver more reliable electricity service to every home and community it serves.

On the one hand, the franchise extension is a nod to the way Meralco has been performing in the past, and a testament to its demonstrated capacity of being a power distribution utility to some of the most important economic centers in the country.

On the other, it’s not a right—it’s a responsibility earned. The franchisee must always remember that the privilege comes with high expectations and a duty to serve the public well. It’s a serious obligation.

Consumers, whether at the individual or household level and the entire spectrum of private and government enterprise, expect more than the status quo. Thus, as Meralco celebrates the good news of its franchise extension, it must recognize the need to step up and improve its services with a clear, actionable roadmap that addresses the accelerating energy demands of a growing population and economy. 

What exactly does this mean?

First, investments. aggressive investments to modernize the aging grid infrastructure, ensuring that brownouts and power interruptions become rare anomalies rather than painful regularities. 

Secondly, it is also about progressive change in processes. Meralco must continue its strict compliance to the transparent and competitive power procurement process (Competitive Selection Process or CSP) that guarantees consumers access to the most affordable, efficient, and clean energy sources.

In March 2025, the Philippines’ headline inflation slowed to 1.8%. This is a welcome development, a good respite for Filipinos who have been battling with the soaring prices of goods for a long time. 

Still, electricity costs remain a significant driver of inflationary pressures. Filipinos still have to shell out more money for electricity than most of their Asian counterparts. This underlines the urgent need for stable, affordable, and reliable power. 

Distribution Utilities (DUs), like other capital-intensive industries, operates as a business in which investors seek reasonable returns on their investment. But power isn’t just another commodity. It directly impacts people’s daily lives and their endeavors to elevate their standard of living. It fuels the economy, drives productivity, and enables people to earn a living.

That’s why millions of Filipino consumers have the right to demand reliable, efficient service. Meralco must continually earn the trust placed in it—by delivering power that meets the needs of the people it serves.

Kit Belmonte is a co-convenor at CitizenWatch Philippines.