Manila Electric Co. (Meralco) has filed for regulatory approval of its annual revenue requirement (ARR) for the 2026-2029 period, proposing an initial PHP 81.8 billion in 2026 to fund power distribution upgrades, network expansion, and service reliability improvements.
The ARR, which will gradually rise to PHP 114.6 billion by 2029, covers operating costs, capital investments, return on capital, and taxes to maintain and enhance the distribution network.
Meralco’s application follows an Energy Regulatory Commission (ERC) directive issued on December 17, 2024, requiring a revised filing for the fifth regulatory period from July 1, 2025, to June 30, 2029.
The company proposed distribution rates starting at PHP 1.6871 per kWh in 2026, slightly increasing to PHP 1.6899 per kWh in 2027, before marginal decreases to PHP 1.6894 per kWh in 2028 and PHP 1.6872 per kWh in 2029. These rates, pending ERC approval, aim to balance affordability and continued investment in power infrastructure.
Meralco is also seeking approval for substantial capital expenditures (capex) and operating expenditures (opex) to support its modernization efforts.
The proposed capex includes PHP 34.39 billion in 2026, rising to PHP 58.50 billion in 2027, PHP 57.91 billion in 2028, and PHP 64.56 billion in 2029. The funds will be used to expand network capacity, replace aging infrastructure, relocate assets, and deploy advanced metering systems for over three million customers.
Meanwhile, operating and maintenance expenditures (opex) are projected at PHP 31.30 billion in 2026, increasing to PHP 33.85 billion in 2027, PHP 36.21 billion in 2028, and PHP 39.30 billion in 2029. These funds will ensure system efficiency, covering preventive maintenance, emergency repairs, and service enhancements.
Meralco underscored the urgency of these investments to meet rising electricity demand and improve grid stability in its franchise area, which includes Metro Manila and neighboring provinces.
“With increasing power consumption and the need for a more resilient grid, these investments are critical to ensuring uninterrupted power supply and better service for our customers,” a Meralco representative stated.
Industry experts highlight that modernizing distribution networks is essential for integrating renewable energy and digital grid technologies, which improve efficiency and minimize system losses.
Meralco’s application will undergo public consultations and ERC hearings, where stakeholders—including consumer groups and regulatory agencies—will assess the justification for the proposed rates and investments.
