Power distributor Manila Electric Co. (Meralco) is open to supporting additional electric cooperatives (ECs) in other areas of the Philippines, including Mindoro, Albay, and Davao de Oro, through equity investment, even as it plans to infuse capital into Batangas Electric Cooperative Inc. (BATELEC) I and II and South Cotabato II Electric Cooperative (SOCOTECO II) — a move it emphasized is not a takeover but a partnership designed to empower and strengthen the ECs.

In a roundtable discussion with reporters on Tuesday, April 7, Atty. Arnel Casanova, senior vice president and head of Meralco’s strategic DU partnerships, shared that while they are focusing on supporting BATELEC I and II, as well as SOCOTECO II, they are open to supporting other ECs that need assistance.

“Other areas like Mindoro, like Albay, like Davao de Oro — these areas, they would really need help. So, they reached out to us, but it would require the board of directors and the management to be open to it,” he said.

“We’re not saying that when we go there, they commit to us already, but at least to hear Meralco’s proposal and how it can benefit them and empower them as electric cooperatives,” he added.

Casanova emphasized that Meralco has no intention of taking over ECs with its capital infusion; instead, the company aims to empower and equip ECs so they can better serve the public.

“We are just an investor. We’re going to upgrade the skills and the capabilities of their employees,” he stressed.

Casanova said Meralco would have a controlling stake in these ECs due to the large-scale system upgrades, such as substations, lines, and smart grids, and a supervisory control and data acquisition (SCADA) system, which require billions in investment.

However, he noted that local management will continue running day-to-day operations.

“We see this opportunity as really a nation-building opportunity. Because if we provide reliable and quality power to the rest of the country, our economy will grow. We will build our manufacturing industrial base,” the Meralco official said.

According to Casanova, the current GDP per capita within Meralco’s franchise is around PHP 500,000 annually, compared with PHP 150,000 to PHP 200,000 in other regions, a gap of roughly PHP 300,000.

“We want to narrow that inequality,” he said.

Meanwhile, Meralco is encouraging BATELEC I, BATELEC II, AND SOCOTECO II to conduct a competitive public bidding among power companies, including Meralco, so that member-consumers can choose the proposal that best serves their interests.

Casanova said the bidding process will be supervised and approved by the National Electrification Administration (NEA), which regulates ECs.

Once a winning bidder is selected, the Energy Regulatory Commission (ERC) will review and approve any proposal to adjust electricity rates, particularly for services like distribution, supply, and metering (DSM).

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