By Lenie Lectura
THE Manila Electric Co. (Meralco) may boost its capital expenditure (capex) for the year by some P1 billion in anticipation of more robust business in the months ahead.
“I think, for this year, we are probably looking at P13.5 billion and potentially up to P14.5 billion,” Meralco President Oscar S. Reyes said.
In 2014 Meralco’s capex stood at P12.6 billion. Capex in the first three months this year totaled P3 billion.
The Meralco official explained that the additional budget was “directed at five things.”
“One, is continue to meet [the] growing number of customer accounts [which is] increasing at 4 percent to 5 percent per annum,” he said. At end-March Meralco customers aggregated 5.63 million, up by 4 percent and buoyed by residential, commercial and industrial sale segments. Residential customers, which account for 91 percent of its subscriber base, rose by almost 198,000.
“Number two, being able to respond to load growth and decrease in energy sales with more awareness of customers. Sales sort of moderated but we want to be ready. Meralco has been actively promoting energy-
saving measures since the government announced it was anticipating a supply shortage in Luzon this summer,” he said.
“Number three, we want to ensure that our facilities are hardened to be able to cope with the new normal in terms of typhoons.
We are now seeing a potential of 285 kilometer-per-hour of strong winds,” Reyes said. This means that Meralco posts are better equipped to withstand strong tropical storms.
“Number four, ensuring that our facilities are upgraded in terms of safety and resiliency for the benefit of customers and the public,” the Meralco official added.
The larger capex should also support the power distributor’s prepaid retail service.
Meralco has so far received 20,000 applications for its prepaid retail electric service (PRES). The service will be initially available in some parts of Manila, Cainta, Quezon City, San Juan, Caloocan, Pasig and Cavite.
Meralco is authorized to install up to 40,000 prepaid meters this year for its PRES. It has a pending application to install an additional 100,000 meters in 2016.
“And then a few things like prepaid retail electricity service, which has been very exciting for the customers because it enables them to have real-time information on consumption and manage their own electricity spending,” Reyes said.