The Energy Regulatory Commission (ERC) has approved around PHP 16.37 billion worth of capital expenditure (CAPEX) projects for Manila Electric Company (Meralco), allowing the utility to proceed with a wide range of distribution system upgrades and modernization projects.

The approval was contained in a decision promulgated on April 30 under ERC Case No. 2017-027 RC covering Meralco’s proposed 2018 CAPEX program.

According to the ERC, the approved projects are intended to support the expansion and rehabilitation of Meralco’s distribution network to address growing electricity demand while improving operational efficiency, reliability, power quality, and safety.

The approved amount was lower than Meralco’s original proposed project cost of around PHP 18.8 billion following adjustments and the exclusion of certain projects.

Among the major projects approved were the expansion and upgrading of substations, replacement of transformers and switchgear, construction of new distribution lines, smart metering initiatives, and information technology and communications system upgrades.

Several projects involve substations and facilities in areas including Valenzuela, Pasig, Taguig, Cavite, and Bulacan.

The decision also included reliability and safety improvement projects across Meralco’s network, including upgrades to poles, underground distribution systems, communications equipment, and customer-related infrastructure.

In its ruling, the ERC said the projects would help provide consumers with “continuous, safe, reliable, secure, and efficient service.”

The commission added that the projects remain subject to optimization and verification based on actual use and incurred expenses under existing regulatory review procedures for distribution wheeling rates.

The ERC also granted Meralco’s request to withdraw one Advanced Metering Infrastructure (AMI) expansion project from the application.

Meanwhile, the commission directed Meralco to pay approximately PHP 120.8 million in permit fees related to the approved projects.

The decision was signed by ERC Chairperson and CEO Francis Saturnino C. Juan along with commissioners Floresinda G. Baldo-Digal, Marko Romeo L. Fuentes, Alexis M. Lumbatan, and Paris G. Real.

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