Meralco-Batelec JV gains traction

MANILA, Philippines — A proposed joint venture between Manila Electric Co. (Meralco) and electric cooperatives in Batangas has received support from at least 18 mayors in the province.

Mayors passed a resolution supporting the partnership between Meralco and Batangas Electric Cooperative Inc. (Batelec) 1 and 2 during the recent meeting of the League of Municipalities of the Philippines (LMP)-Batangas Chapter.

The partnership aims to address the province’s prolonged power outages and recurring brownouts, which were said to have affected not just the residents and businesses but also the local economy.

“We are grateful for LMP-Batangas backing this initiative because an improved power service isn’t just beneficial to the daily grind; when you look at the bigger picture, it also impacts the local economy,” Meralco chief external and government affairs officer Arnel Casanova said.

The joint venture, Casanova said, is expected to improve consumer services and ensure reliable and affordable electricity for locals.

“We can also attract and retain investors in non-Meralco areas in Batangas to contribute to local employment and economic growth. The joint venture will allow electric cooperatives to continue participating in and (benefiting) from the growth in the area,” he added.

Through the partnership, the Pangilinan-led distribution utility can also infuse more capital into the electric cooperatives in addition to its technical expertise.

Batelec 1 covers one city and 11 municipalities in the western part of Batangas, while Batelec 2 provides service to two cities and 15 municipalities in the eastern part of the province.

When combined, the two electric cooperatives have more than 500,000 consumer members and around 1,671 gigawatt-hours in energy sales.