Power utility giant Manila Electric Company (Meralco) has rolled out P14.12 billion worth of capital expenditure (capex) projects in this year’s first half, roughly flat from the P4.17 billion spending level in the same period last year.

According to the power firm, the bulk of the capital outlay at P9.6 billion had been for expansion and reinforcement of its load network so it can improve services to its more than 7.7 million customers. These projects covered new connections, asset renewals and load growth projects.

Within January to June this year, Meralco reported that its customer base had grown by three percent to 7.716 million versus 7.519 million a year ago.

On top of its electric-related capital projects, Meralco similarly injected P2 billion worth of capital investment for its tower business under MIESCOR Infrastructure Development Corp. (MIDC) while capital outlay in the power generation segment of its business stood at P461 million.

“Meralco continued to invest in the expansion and upgrading of its distribution network facilities,” the utility firm indicated.

Among the network projects it recently completed had been four new substations – including the 115 kilovolt-34.5kV Arca South gas insulated switchgear substation in Taguig City; the 115kV-34.5kV Vermosa South substation in Imus City, Cavite; the 115kV-34.5kV Real substation in Calamba City, Laguna; and the 69kV-13.8kV substation in San Ildefonso, Bulacan.

Additionally, the utility firm had installed 115kV capacitor banks at the Canlubang and Cainta substations which was done in conjunction with the transmission project of the National Grid Corporation of the Philippines.

Critical component of the capex projects carried out by Meralco had also been its pole replacement programs - primarily across sites that will be straddled by the infrastructure projects of the government.

It specified that within areas traversed by the road widening projects of the Department of Public Works and Highways (DPWH), there had been at least 720 poles relocated while another 370 poles had to be transferred because they would be crossed over by the Build Better More infrastructure development plan of the current administration.

The expanded capex projects of Meralco will be highly essential as the country grapples with the growing energy demand, not just of residential end-users but also of a rebounding economy from the torment of a three-year long pandemic.

Capex is part of the building blocks integrated in Meralco’s application for tariff-setting with the Energy Regulatory Commission (ERC) and any emergency capital spending will also need to go through regulatory approval before the projects can be implemented.