Meralco Seeks Partnership to End Power Interruptions in Batangas

After years of recurring brownouts that routinely stretch up to three hours, thousands of consumers in the service area of Batangas Electric Cooperative 2 (BATELEC 2) may soon see changes as Manila Electric Co. (Meralco) signaled readiness to form a partnership aimed at stabilizing power supply across the province.

Meralco executives said the initiative is not a takeover but a proposed joint venture designed to inject capital, technology, and operational support into the cooperative, which has struggled with chronic service interruptions.

Empowering Cooperatives

Arnel P. Casanova, Meralco senior vice president for External and Government Affairs, said the company submitted its proposal to BATELEC 2 last year and is awaiting the cooperative’s formal evaluation process.

“Our approach is really to have a partnership with electric cooperatives,” he said. “So to us, it’s not exactly franchise expansion, but more of empowering electric cooperatives by forming joint ventures with them.” He emphasized that the cooperative would retain its franchise under the structure allowed by the Electric Power Industry Reform Act and its implementing rules, while Meralco’s role would be to provide capital infusion and technical expertise to help improve service reliability.

Casanova said the utility prepared a complete modernization plan for BATELEC 2’s network, noting that current constraints stem from the cooperative’s cash-flow-based rate-setting framework. This limits the co-op’s spending power and prevents large-scale upgrades.

Capital Gaps Affecting Investors

Meralco said Batangas’ growing industrial base requires advance investment in equipment they have previously struggled to fund, such as substations, transformers, and system reinforcement. Casanova noted that businesses in BATELEC 2 areas often end up paying for their own facilities, a deterrent that pushes potential locators to look elsewhere.

“With cash constraints, investors are forced to shoulder infrastructure that should be the utility’s responsibility,” he said, adding that the cost burden has slowed Batangas’ ability to attract and retain industries.

The proposal is now with BATELEC 2’s management and is expected to undergo a member-consumer referendum before securing approvals from the National Electrification Administration and other regulators.

Casanova urged the cooperative to establish clear evaluation criteria, citing the presence of other interested parties and the need for a transparent review process.

High Dissatisfaction Among The Public

A recent Capstone-Intel survey covering 1,200 respondents from all 34 towns and cities in Batangas revealed that frequent outages have eroded public confidence in both BATELEC 1 and 2. The study found that 93% of BATELEC 2 customers reported multiple monthly outages, while 81% of BATELEC 1 customers experienced similar disruptions, and that outages typically lasted one to two hours, sometimes reaching three.

Capstone-Intel said the sampling method ensured results accurately reflected consumer sentiment across service areas. It added that consumers served by other utilities encountered fewer disruptions, highlighting performance gaps among the co-ops. Customer service satisfaction scores also fell below the provincial average of 4.09, with BATELEC 2 scoring 3.90.

Dr. Guido David, Capstone-Intel’s chief data scientist, said the findings point to a “widening gap in electricity service across the province,” stressing that reliable power is essential for economic activity and daily life.

Impact on Key Economic Sectors

Meralco said stabilizing the electricity supply in BATELEC 2 territory would support both industrial operations and tourism, particularly in San Juan, Nasugbu, and Laiya—areas where resorts and commercial establishments rely heavily on consistent power.

Casanova said power instability has “suppressed” economic activity in parts of Batangas and discouraged manufacturers planning to set up facilities there. He added that persistent outages not only affect the province but may also limit broader economic opportunities for the country.

Should the joint venture push through, Meralco intends to upgrade BATELEC 2’s facilities using the cooperative’s existing franchise, focusing on system reliability, customer service improvements, and long-term operational sustainability.

Modernization Plans and Long-Term Vision

Meralco also said success in BATELEC 2 could pave the way for future collaboration with BATELEC 1. The company is additionally exploring projects such as a submarine cable between Batangas and Mindoro, which could provide alternative power routes and strengthen regional supply security.

With outages continuing across large parts of the province, residents and businesses are waiting for BATELEC 2’s next move on the proposal. The cooperative has not yet announced a timeline for public consultation or internal review.

For now, Casanova said Meralco remains ready to begin work once given the green light. “The main priority is to make power service reliable,” he said. “Once stable electricity is in place, the economy can grow the way it should.”

Source:

https://mb.com.ph/2025/11/08/meralcos-billion-bid-to-end-batangas-decades-of-darkness

https://business.inquirer.net/557469/biz-buzz-meralco-expansion-to-batangas-pushed