Power distributor Manila Electric Co. (Meralco) is seeking its first distribution rate increase in over a decade to fund a ₱272 billion grid modernization plan.

Meralco chairperson Manuel V. Pangilinan told reporters that the utility filed an application with the Energy Regulatory Commission (ERC) to adjust its tariffs for the first regulatory period, a move that would end an 11-year freeze on the rates it charges customers for delivering electricity.

Pangilinan said the adjustment is necessary to reflect the company's current operational costs and the substantial investments required to upgrade the aging power infrastructure.

“We filed an application for the tariffs. All I can say is we haven’t had any tariff adjustment since July 2015… This is our 11th year of flat distribution of tariffs, so we deserve some adjustment,” Pangilinan said.

Meralco has not seen a tariff adjustment since July 2015, leaving distribution rates flat even as inflation and technological demands have evolved.

According to Pangilinan, the company deserves an adjustment given the decade-long gap in rate revisions, though he noted the final decision rests with the ERC.

The proposed ₱272 billion capital expenditure program, spanning 2027 through 2030, is designed to enhance service reliability and prepare the grid for a shifting energy landscape.

Under the filing, Meralco plans to deploy ₱50.80 billion in 2027, followed by ₱59.87 billion in 2028 and ₱59.67 billion in 2029. The spending is expected to peak at ₱71.17 billion in 2030. These figures follow a period of aggressive spending; for the first nine months of last year, the utility’s consolidated capital expenditure reached ₱78.8 billion.

A key pillar of the investment plan is the development of the Grid Edge Operations and Control Center. Slated for completion in 2030, the facility is intended to serve as a complementary system control hub capable of managing a growing fleet of electric vehicles, battery energy storage systems, and residential solar installations. Pangilinan signaled that the company’s capital budget for the current year would likely exceed 2025 levels as the firm pushes to become the most efficient power utility in the country.

While the rate reset process moves through the regulatory pipeline, Pangilinan offered assurances regarding the country’s immediate energy security. Despite the approaching summer months—a period typically marked by spikes in demand and occasional supply thins—the Meralco chief said the current market is well-supplied.

He indicated that there is an oversupply in the system, suggesting that consumers are unlikely to face power shortages in the near term.