Manila Electric Company (Meralco) has emphasized the importance of strategic internal audit in driving operational transformation and innovation in the power sector during the 2025 Heads of ASEAN Power Utilities/Authorities (HAPUA) Internal Audit Summit held on August 13–14.

In his keynote speech, Meralco Executive Vice President and Chief Operating Officer Ronnie L. Aperocho highlighted the shift in internal audit’s role from compliance to a more proactive function. “By embedding audit foresight into strategic execution, we ensure that transformation happens with control, not chaos. This is especially vital as we pursue innovation without compromising risk standards or regulatory alignment,” Aperocho said.

Providing a focused audit perspective on Meralco’s digital transformation, Senior Vice President and Group Chief Audit Executive Melanie T. Oteyza discussed the company’s Advanced Metering Infrastructure (AMI), which she described as the “digital nervous system of modern utilities.” AMI plays a central role in enabling the government’s customer choice initiatives. This includes the Retail Aggregation Program, which has switched 19 aggregated groups covering 292 services as of June.

Oteyza stressed that auditing AMI requires moving away from traditional assurance frameworks to a broader understanding of interdependent risks. These would include a holistic understanding of cybersecurity, data integrity, vendor reliability, and regulatory compliance. She also called on ASEAN auditors to leverage artificial intelligence and analytics for insights-driven auditing. “Internal Audit must evolve from guardians of compliance to catalysts of resilience and innovation. Our role is not only to protect value—but to enable it,” she emphasized.

She further outlined global lessons in AMI governance, the importance of cyber and operational safeguards, and data assurance, encouraging ASEAN utilities to adopt these principles early to prevent implementation challenges and strengthen audit maturity across the region.

The summit gathered 150 delegates, including chief audit executives, leaders, and practitioners from seven Southeast Asian countries. The Philippine delegation was composed of Meralco, the National Grid Corporation of the Philippines (NGCP), the National Power Corporation (NPC), and the National Transmission Corporation (TransCo). The annual event serves as a platform for expert-led discussions and collaboration on advancing audit practices across ASEAN.

How can internal audit further evolve to strengthen accountability and innovation in the country’s power sector?

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