In a landmark move with major corporate and commercial implications, a proposal has emerged to convert the Batangas I Electric Cooperative (BATELEC I) into a stock corporation under a joint venture with Manila Electric Company (Meralco). The initiative, confirmed through a Memorandum of Understanding (MOU) signed by BATELEC I officials and Meralco representatives, would potentially shift the cooperative’s structure to allow private capital infusion and more robust grid modernization in Batangas.
Industry observers highlight this as part of a broader trend of electric cooperatives being absorbed or transformed in partnership with large private utilities. The Meralco-led proposal ostensibly focuses on improving service delivery and operational efficiency in the face of growing demand in the province.
However, the joint venture faces a competing proposal backed by business magnate Enrique Razon, through Primelectric Holdings. Razon’s group has been active in acquiring or partnering with cooperatives and local distribution utilities, as seen in similar moves in Iloilo and other regions, positioning this as a corporate power play between the Philippines’ top business groups.
The BATELEC I Board is expected to respond formally in the coming weeks, with members citing the need to protect consumer interests and ensure compliance with NEA (National Electrification Administration) guidelines. Observers suggest that the cooperative’s member-consumers may also be asked to vote on any structural conversion, adding another layer of regulatory and grassroots scrutiny to the unfolding power sector shake-up.
