The Manila Electric Co. (Meralco) will invest in improving the services of electric cooperatives (ECs) in key areas of the country.
Manuel Pangilinan, Meralco chairman and chief executive officer, said at the Giga Summit hosted by the company in Makati City this week improvements are needed to level up the services and efficiencies of ECs.
Pangilinan said he is “encouraging” Meralco to adopt the idea of “broadening investments in electric cooperatives in the country.”
“We might be efficient on the generation side of the business but Meralco’s distribution footprint is limited to our franchise area. So, there are key areas in the country where electric cooperatives have got to level up to the kind of standards and efficiencies Meralco as a distribution company has achieved,” Pangilinan said.
Meralco did not elaborate on the plan as well as the target areas for possible EC investments.
One of the ways private companies can invest in ECs is through a joint venture agreement.
Meralco also has a 65 percent stake in Clark Electric Distribution Corp. which has the rights to own, operate and maintain a power distribution system and to distribute power exclusively within the Clark Special Economic Zone and its subzones.
The company also has a stake in Pampanga II Electric Cooperative as the EC signed an investment management contract with Comstech Integrated Alliance Inc. and Meralco as its technical partner in 2014.
