Power giant Manila Electric Co. is revving up for a historic spending cycle, lining up P272.2 billion in capital expenditures to modernize its grid, harden infrastructure, and keep pace with the country’s swelling power demand.
Chairman Manuel V. Pangilinan, better known as MVP, is framing the push as both defensive and opportunistic. The utility is preparing for increasing solar panel installations on rooftops, a rising electric vehicle fleet, and even the long arc of nuclear energy feasibility.
In short, Meralco wants to future proof the franchise before demand outruns the wires.
The plan hinges on a pending distribution tariff application with the Energy Regulatory Commission under its Fourth Regulatory Period, covering July 2026 to June 2030. Filed on Feb. 2, 2026, the proposal lays out the revenue requirement to fund the upgrade wave. Hearings start in March.
“Finally, the timely implementation of new distribution tariffs under the 1RP will further allow Meralco to undertake capital intensive projects that will not only meet growing power demand and modernize energy infrastructures, but also future proof our operations, all of which will benefit our customers in the long term,” Pangilinan said.
This means the higher power distribution tariffs would bankroll a grid that is smarter, sturdier, and more renewables ready. The last performance based reset dates back to 2010, leaving a backlog of projects now bundled into the P272.2 billion program, from substation builds to digital systems and solar home deployments in remote areas.
On supply, regulators approved a second interim extension of Meralco’s deal with First Gas Power Corp.’s Sta. Rita plant, securing 644 megawatts of capacity through June 25, 2026.
Meanwhile, change in circumstance claims worth P31.3 billion from several generators will add P0.2817 per kilowatt hour to the generation charge starting March, for 12 to 36 months.
In renewables, Meralco’s 200 megawatt baseload requirement for Renewable Portfolio Standards compliance drew a lowest offer of P4.2955 per kilowatt hour, beating 10 bidders.
The strategy is straightforward. Spend big now, stabilize the grid, and anchor growth in a power market that is only getting more complex and more electric.
