Power distributor Manila Electric Co. plans to increase its capital expenditures this year to P14.5 billion from P12.6 billion in 2014 to strengthen its network, meet customer demand and introduce prepaid electricity retail service.
“I think for this year, we are probably looking at P13.5 [billion] and potentially up to P14.5 billion. It’s all directed at five things,” Meralco president Oscar Reyes told reporters.
Meralco already spent P3 billion in the first quarter to maintain and upgrade its distribution network.
Reyes said the higher capex this year would ensure that Meralco would meet the 4 percent to 5 percent annual growth in customer accounts.
He said the higher capital expenditures would enable Meralco to “respond to load growth.”
“Number three, we want to ensure that our facilities are hardened to be able to cope with new normal in terms of typhoons. We are now seeing a potential of 285 km/h winds. Number four, ensuring that our facilities are upgraded in terms of safety and resiliency for the benefit of customers and the public,” Reyes said.
The capex also includes the budget for the prepaid retail electricity service, “which has been very exciting for customers because it enables them to have real time information on consumption and manage their own electricity spending.”