Overview
Manila
Electric Company, also known as MERALCO, is a private distribution
utility (DU), which holds a congressional franchise under Republic Act
(“RA”) No. 9209. The franchise valid through June 28, 2028 to
construct, operate, and maintain the electric distribution system in
the
cities and municipalities of Bulacan, Cavite, Metro Manila, and Rizal and
certain cities, municipalities, and barangays in the provinces of Batangas, Laguna, Pampanga, and Quezon. MERALCO
is the Philippines’ largest electric power distribution company, with
franchise area covering 9,685 square kilometers. It provides power to more
than 6 million customer accounts in 36 cities and 75 municipalities. The
franchise area accounts for more than 50% of the country’s Gross Domestic
Product (GDP).
MERALCO
has
a unit for its participation in retail electricity supply (“RES”). The
MERALCO local RES, otherwise known as MPower, is a
business unit within MERALCO.
Business
The
principal business of MERALCO is the distribution and sale of electric
energy through its distribution network facilities in its franchise area. It
consists of power distribution, power generation, RES and other services.
Sales contribution
per customer segment in 2016
Segment
|
Sales Percentage
|
No. of Customers
|
Residential
|
31.00%
|
5,537
|
Commercial
|
39.53%
|
486
|
Industrial
|
29.14%
|
10
|
Streetlights
|
0.33%
|
5
|
As of 2016, Generation charge accounts for 59% and
Distribution accounts for 23% of total electricity revenues.
Subsidiaries /
Associates / Affiliates / Joint Ventures
Meralco Industrial Engineering Services Corporation (“MIESCOR”) is
99%-owned by MERALCO, is engaged in engineering, procurement,
construction and maintenance activities related to power generation,
transmission and distribution, as well as industrial plants, water resources
and telecommunications.
Corporate Information Solutions, Inc. (“CIS”) is a wholly-owned
subsidiary of MERALCO.
CIS, through CIS Bayad
Center, Inc. (“Bayad Center”), is in the business of bills payment
collection.
Meralco Energy, Inc. (“MEI”), operating as MServ,
is a wholly-owned subsidiary, services like energy-saving alternatives, power
quality and power factor services.
Clark Electric Distribution Corporation (“CEDC”) is 65%-owned by MERALCO.
MERALCO PowerGen Corporation (“MGen”) is
a wholly owned subsidiary, to develop, build, own and operate a diversified
power portfolio. MGen has shares in the following power plants.
● San
Buenaventura Power Ltd. Co.’s (“SBPL”): 455 MW (net)
supercritical coal-fired power plant. Expected commercial operation is in
2019.
●
Redondo Peninsula Energy, Inc. (“RP Energy”): 2 x 300 MW (net)
coal-fired power plant. Expected commercial operation is in 2020.
● Atimonan
One Energy, Inc. (“A1E”): Developing 2 x 600 MW ultra supercritical
coal-fired power plant.
● St.
Raphael Power Generation Corporation (“SRPGC”): Will develop 2 x 350 MW
sub-critical pulverized coal-fired power plant. It’s a 50-50 JV with
Semirara Mining and Power Corporation.
● Mariveles
Power Generation Corporation (“MPGC”): Will develop a 4 x 132 MW coal-fired
power plant. It’s a JV with SMC Global Power Holdings Corp(51% holder).
●
MGen also has a 28% effective equity interest in PacificLight Power
Pte. Ltd. (“PacificLight”) that has been operating its 2 x 400 MW
in Singapore.
MSpectrum, Inc. (“Spectrum”) is a wholly-owned
subsidiary of MERALCO is for the entry into the renewable energy space
and other technologies.
MRAIL, Inc. (“MRail”) provides rail
maintenance service.
|