Manila Electric Company (Meralco) said it is taking steps to protect consumers from possible electricity price increases and supply disruptions as tensions in the Middle East threaten to ripple through global fuel markets.

Meralco Executive Vice President and Chief Operating Officer Ronnie Aperocho said the utility is coordinating with power suppliers and adjusting its sourcing strategies to keep generation charges at least-cost while maintaining system reliability.

“Amid heightened geopolitical tensions in the Middle East and the potential ripple effects on global fuel markets, Meralco is proactively implementing all necessary measures to shield our customers from possible supply disruptions and upward pressure on electricity prices,” Aperocho said.

The distribution utility said it is optimizing its energy mix and managing its exposure to the Wholesale Electricity Spot Market (WESM), where electricity prices can be volatile.

“We are closely coordinating with our power suppliers to keep generation charges at least-cost while prioritizing reliability across our system. We are optimizing our energy mix and fully leveraging cost-efficient sources, regardless of technology. In addition, we are carefully managing our exposure to the Wholesale Electricity Spot Market (WESM), where price volatility is high. We will also secure lower-cost replacement power whenever needed,” he said.

Aperocho added that the measures align with a directive from Meralco Chairman and CEO Manuel V. Pangilinan to reassess the company’s fuel sourcing strategy amid evolving global risks.

“This is fully aligned with the directive of our Chairman and CEO, Manuel V. Pangilinan, for Meralco to undertake a comprehensive reassessment of our fuel position and sourcing strategy. As a company also engaged in power generation, we stand ready to do our part to help stabilize supply,” he said.

Meralco also reiterated support for government calls to strengthen energy efficiency, including wider participation in the Interruptible Load Program (ILP) to help preserve supply during grid stress.

“We likewise support the national government’s call to strengthen energy efficiency across all sectors. For our industrial and commercial customers, we continue to provide practical guidance and technical support to help enhance efficiency within their operations. We are also amplifying our call for participation in the Interruptible Load Program (ILP), which remains a critical proactive measure to help preserve available supply should de-loading from the grid become necessary,” Aperocho said.

For households, the company said it is intensifying efforts to promote conservation and expand access to the Lifeline Rate Subsidy Program, including automatic enrollment for eligible beneficiaries under the Department of Social Welfare and Development’s 4Ps program.

“We remain fully committed to facing these uncertainties with care and foresight so Meralco can continue providing reliable power and supporting our customers through these challenging times,” he said.

Could geopolitical tensions and fuel price volatility reshape the Philippines’ power sourcing strategies in the near term?

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