The Manila Electric Co. (Meralco) announced plans on Wednesday to allocate up to P25 billion as capital expenditure (capex) in 2025, marking an increase from this year’s P22 billion budget. The funds are primarily directed at strengthening the company’s power distribution network, with focus on enhancing grid resilience and storm hardening.
Ronnie Aperocho, Meralco executive vice president and chief operating officer, said at a corporate event in Pasig City last week the increased capex helps address the rising number of storms in the region. “The integrity of our distribution system is really, somewhat in danger if our system is not really that storm-hardened,” Aperocho said, emphasizing the importance of fortifying the network against severe weather conditions.
The P25 billion fund is focused solely on Meralco’s power distribution business, as the company’s other affiliates, especially in power generation, have separate, but even larger capital requirements.
In addition to the planned investments, Meralco expects to report strong financial performance this year. The company recently revised its 2024 income guidance, forecasting income exceeding P43 billion, surpassing its original estimate of P40 billion. Meralco Chairman Manuel Pangilinan expressed optimism on the company’s future, citing projections of continued growth in 2025 through organic expansion and new investments.
The increased capex and positive financial outlook reflect Meralco’s ongoing commitment to improving service reliability and preparing for the challenges posed by climate-related disruptions.
