ENERGY Secretary Raphael Lotilla on Thursday called on the Manila Electric Co. (Meralco) to step up and rise to the challenge of delivering more affordable and efficient electricity, following its recent franchise renewal.

Speaking at an event held at the Meralco Power Academy, Lotilla noted that, while "Meralco's demand of nearly 9,000 megawatts accounts for half of the entire country's power demand and 70 percent of Luzon's demand," its performance metrics have raised concerns.

He cited Meralco's power sourcing practices, in which "nearly half of its power comes from its affiliates," yet it "does not have the cheapest power rates when compared with other [distribution utilities] and [power cooperatives]."

Lotilla cautioned that "any delays in the implementation of a power supply agreement [affects not just] the Meralco franchise area but particularly the rest of the zone."

The Department of Energy, along with regulatory agencies such as the Energy Regulatory Commission and the Philippine Competition Commission, pledged to maintain oversight functions to examine the issues.

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"Meralco has a primordial role ... Even our courts recognize that Meralco's franchise area is a mega-franchise," said Lotilla.

The power distribution company serves more than 7.8 million customers across nearly 10,000 square kilometers — five times larger than the area covered by the country's two largest water utilities combined.

Strengths

Nonetheless, Lotilla acknowledged Meralco's strengths: "Its technological capabilities, especially in disaster response, are exemplary ... In diversification of sources of energy, including renewable energy, the Meralco Group has also been a leader."

He urged Meralco "to be the very best you can be. Your performance affects the rest of the country."

For his part, Meralco Chairman and CEO Manuel Pangilinan said: "I hope we are able to bring down power prices at least on the distribution side. We don't make money on the generation side, but we get the brunt of the criticisms."

He concluded: "It is in our interest to bring power rates down, we are looking for ways to do that."