Manila Electric Co. (Meralco) is pushing for a joint venture agreement with Batangas II Electric Cooperative (BATELEC II) that would involve a multibillion-peso capital infusion to improve power supply reliability and service quality in the cooperative’s franchise area.
In an interview during Dos Por Dos on Wednesday, Meralco Senior Vice President and Head of Strategic DU Partnership Arnel Casanova said that the proposed partnership would fund the modernization of BATELEC II’s facilities, technology and other infrastructure.
Casanova stressed that the proposal was not intended to take over the electric cooperative but to strengthen its operations and reduce system losses.
The proposal also includes converting BATELEC II into a stock corporation, allowing member-consumers to become shareholders, receive dividends and participate in the company’s management.
Casanova said the partnership would also seek to keep generation costs low while improving electricity services for consumers.
He said Meralco’s existing infrastructure in Batangas and neighboring provinces would allow it to address power interruptions and improve supply reliability in the area.
Meralco could connect and loop existing substations to provide alternative sources of electricity in case one substation encounters a problem, Casanova said.
“Marami kaming substations na pwedeng ikabit agad, ilu-loop natin upang magkaroon man ng problema sa isang substation ay may pagkukunan pa rin ng kuryente.”
He added that consumers could begin experiencing improvements in service within a year if the proposed measures were implemented.
“Napakadaling gawin non, sa loob lamang ng isang taon mararamdaman agad ang pagganda ng serbisyo. Meralco lang ang kayang gumawa non.”
Meanwhile, Casanova attributed rising electricity rates to higher generation charges, which are affected by fuel prices, including the cost of natural gas and crude oil.
He cited the conflict involving Iran as a factor contributing to higher fuel prices, which in turn increased generation costs.
“Halimbawa sa Meralco ang kinukuhanan namin ay sa natural gas, dahil sa giyera sa Iran at nagkaroon ng pagtaas ng halaga ng natural gas at krudo na ikinataas ng presyo ng generation rate.”
Casanova said electricity rates vary across the country depending on the energy sources used by power providers and the availability of supply. Areas relying on coal may have lower generation costs, while supply shortages could push rates higher elsewhere.
He also pointed to power supply shortages and reliability problems in other areas of the country such as in Eastern Samar, where consumers may face additional costs when electricity is sourced from distant power plants because of transmission-related charges.
“Kung ang pinagkukunan nila halimbawa ng kuryente ay malayo pang planta, nagbabayad pa sila ng malaki line rental charge.”
Casanova’s remarks came amid concerns over high electricity rates in some parts of the country, including reported rates of around 22 pesos per kilowatt-hour in Eastern Samar.
Watch the full exclusive interview below:
