DOE Urges Meralco: Be the Very Best You Can Be
- May 6, 2025
Department of Energy (DOE) Secretary Raphael Lotilla urged the Manila Electric Company (Meralco) to enhance its efforts in delivering more affordable and efficient electricity, following the recent renewal of its congressional franchise.
Speaking at the 2025 Giga Summit, Lotilla highlighted the utility’s significant role in the country’s energy landscape. He noted that Meralco’s power demand of nearly 9,000 megawatts comprises half of the Philippines’ total demand and 70 percent of Luzon’s consumption.
Meralco also holds a dominant position in the contestable market. Its retail electricity arm, MPower, supplies around 40 percent of eligible customers within its franchise area, representing roughly 25 percent of contestable demand nationwide.
The energy giant is also in the power generation business with MGen. Meralco’s affiliated generation companies are nearing the regulatory limit, which allows distribution utilities to source up to 50 percent of their power supply from related firms.
(Also read: The Power of Competition Ensuring Affordable and Reliable Energy)
An appeal for affordability and reliability
Despite its broad market reach and growing generation portfolio, Lotilla pointed out that some of Meralco’s performance indicators have drawn concern and warrant improvement.
“Even with economies of scale, Meralco does not have the cheapest power when compared with other DUs [distribution utilities] and ECs [electric cooperatives],” the energy secretary said.
(Also read: Appeals Mount to Slash Electricity Rates)
Meralco Chairman and CEO Manuel Pangilinan expressed hope that the company can help lower electricity costs.
“I hope we are able to bring down power prices at least on the distribution side. We don’t make money on the generation side, but we get the brunt of the criticisms,” Pangilinan said. “It is in our interest to bring power rates down, we are looking for ways to do that.”
Lotilla also appealed to Meralco to fulfill its franchise duties, especially in securing reliable and cost-effective power supply through its sourcing decisions.
“Any delays in the implementation of a power supply agreement have results, not just within the Meralco franchise area, but particularly for the rest of Luzon,” Lotilla said.
In early April, the DOE raised concerns over alleged shortfalls in electricity delivery under a power supply agreement between Meralco and Excellent Energy Resources Inc. (EERI), the operator of a 1,275-megawatt combined-cycle natural gas facility.
(Also read: Delays at Batangas Gas-Fueled Plant Draw Scrutiny)
Be the very best you can be
While calling for improvements, Lotilla also acknowledged Meralco’s progress in several key areas, praising the company’s technological advancements and leadership in energy diversification.
“Meralco has shown commendable steps. Its technological capabilities, especially in disaster response, are exemplary and should be adopted more widely by electric operators. In diversification of sources of energy, including renewable energy, the Meralco group has also been a leader,” Lotilla said.
Lotilla underscored the critical role Meralco plays in the nation’s development, emphasizing the company’s responsibility to raise performance standards, given the scale of its operations and impact.
“Electricity is a public necessity vital for every aspect of our economy and society and central to the government’s goal of equitable national development. In this context, Meralco has a primordial role as the country’s largest and most significant distribution utility,” Lotilla said.
“The question that we need to ask is, how can Meralco be the very best that it can be? It is a challenge that I impose on you, given that your performance affects the rest of the country,” the energy secretary urged.
Sources:
https://www.meralcopoweracademy.org/giga-summit-about/
https://businessmirror.com.ph/2025/04/25/doe-to-meralco-be-the-very-best-you-can-be/
https://tribune.net.ph/2025/04/24/doe-prods-meralco-rate-cut-post-extension
