Meralco eyes partnerships with electric cooperatives to lower power rates

Abi Sarabia M., Philippine Canadian Inquirer
August 21, 2026

Photo courtesy: Philippine News Agency

MANILA, Philippines — Manila Electric Co. (Meralco) is pursuing partnerships with electric cooperatives to improve power service and lower electricity costs in areas outside its franchise.

Meralco Senior Vice President Arnel Casanova said the company plans to provide capital and technology to electric cooperatives struggling with high system losses and unreliable service.

He said Meralco’s system loss is around 5 percent, while some electric cooperatives record losses of 10 percent to as high as 25 percent.

“If you are able to lower that to even a single digit, that’s worth billions of pesos in savings for the consumers,” Casanova said.

Meralco said its proposal would involve converting participating electric cooperatives from non-stock to stock corporations, allowing private investment while giving member-consumers ownership in the new entity.

Casanova stressed that the plan is a partnership, not a takeover.

Meralco is currently pursuing possible partnerships with Batangas I Electric Cooperative and Batangas II Electric Cooperative. The company has also backed competitive bidding in selecting private partners for electric cooperatives.

Prime Electric Holdings Inc., led by Enrique Razon, has also expressed interest in investing in the Batangas cooperatives.