In his 2025 State of the Nation Address, President Ferdinand Marcos Jr. acknowledged the country’s persistent energy supply challenges such as frequent power outages in rural areas, and the lack of access to electricity of over 3 million households in the countryside as he vowed to achieve full household electrification by the end of his term.
With artificial intelligence and rapid technological advancement often dominating public discourse on progress and innovation, it may come as a surprise that for many communities across the Philippines, stable and reliable electricity remains out of reach.
A 2023 study by the Philippine Institute for Development Studies titled “Electricity Supply Interruptions and Its Impact on Local Economies” estimates that a single power interruption experienced by electric cooperatives results in ₱10.7 billion losses from local government from reduced earnings from economic enterprises, business taxes, and real estate taxes.
“…Improving electricity reliability especially outside the NCR (National Capital Region), is both crucial and urgent as unreliable electricity supply has major repercussions on local growth and development,” the study noted. “Hence, developing policies that would help boost the performance of ECs as well as ensuring they have access to enough power supply should be high in the list of priorities.”
Recognizing electricity access challenges, the Department of Energy is accelerating electrification through government funding and aligning strategies with distribution utilities, electric cooperatives, local government units, and other stakeholders under its flagship initiative Locally Funded Project-Total Electrification Program. The program highlights the transformative link between energy access and human development, where education, healthcare, enterprise, and overall quality of life are uplifted through electrification.
With energy access in the countryside high up in the government’s agenda, the Philippines is fortunate that it does not have to look far for the blueprint for reliable and stable electricity service to boost regional development.
With over a century of expertise in the energy industry, the Manila Electric Company (Meralco), long recognized for its resilient distribution network and operational efficiency, is actively working to bridge the electricity service gap by positioning itself as a strategic partner to electric cooperatives—leveraging its infrastructure, and technical expertise to support economic progress and champion inclusive development in other parts of the country.
“Being the biggest power distribution company in the Philippines, we believe that it’s our moral duty to actually invest in our electric cooperatives so that we could bring everyone up,” Meralco Senior Vice President and Chief External and Government Relations Officer Arnel P. Casanova said.
Bridging the gap
As part of its commitment to inclusive nation-building, Meralco is working to narrow the electricity service divide between urban hubs and rural areas by offering help to electric cooperatives. Casanova emphasized that the intent is not to displace cooperatives but to partner with them through capital infusion, training, and shared solutions.
“Our main thrust is to empower the electric cooperatives. We are not an enemy of the cooperatives. In fact, what we want to do is infuse more capital and improve their quality of service,” Casanova said.
Earlier this year, Meralco formally expressed its intent partner with Batangas Electric Cooperative (BATELEC) I and II with an ultimate aim of enhancing the delivery of reliable and stable power distribution services across the Southern Tagalog province, part of which are already being served by Meralco.
The initiative seeks to replicate the economic momentum seen in Batangas municipalities already under Meralco’s coverage—namely Sto. Tomas, Batangas City, and San Pascual—which have posted a cumulative annual growth rate of 14% from 1992 to 2024.
This figure significantly outpaces the 8.5% growth recorded in BATELEC II’s service areas from 1991 to 2024, and the 6.3% growth in BATELEC I territories from 2000 to 2024 according to industry data.
The proposed partnership underscores the critical link between economic development and energy reliability and stability—positioning Meralco as an enabler of broader and more inclusive economic growth.
“Where distribution is strong, industries thrive. Meralco’s growth in Batangas is proof that strong utilities attract investment and jobs,” Casanova said.
Proven enabler of economic growth
Compared with the 121 electric cooperatives in the country, Meralco has been widely known as the “gold standard” in electricity service backed by proven operational efficiency, infrastructure, scale, and service quality that consistently surpasses industry standards.
Industry data shows that in 2024 alone, Meralco registered 54,325 GWh in energy sales—significantly higher than the 31,553 GWh collectively distributed by the country’s electric cooperatives.
This immense energy output powered industries, commercial hubs, and millions of households in Metro Manila and surrounding provinces that serve as the economic lifeline of the country.
Last year, Meralco also saw a peak demand of 9,320 MW versus the combined 6,203 MW managed by cooperatives—demonstrating its capacity to support large-scale economic activity and infrastructure.
“The challenge now is how can we serve and how can we promote industrialization in the countryside so that the entire economy of the Philippines can be lifted up,” Casanova said.
Beyond scale, Meralco’s operational efficiency sets it apart. In 2024, its system average interruption frequency index – the average number of times a customer experiences an outage in a year – was far lower by around 94% at 1.04 times compared with the average 16.15 times for electric cooperatives. Average duration of power interruptions in areas serviced by Meralco was also significantly lower by around fifteenfold at 108 minutes or less than two hours, compared with the average 1,706 minutes or around 28 hours for cooperatives during the same year.
“If we are able to provide reliable and quality power to the countryside, then investments will flock inside the country, and we can compete with our neighboring countries. And therefore, from a service economy, we can build a strong foundation for our manufacturing and technology,” Casanova said.
With a collection efficiency of 99.8%, Meralco is also able to maintain good financial health—allowing it to actively invest in strengthening its distribution network. As of 2024, Meralco’s investments in property, plant, and equipment are valued at ₱194 billion—higher by more than 200-fold compared with the average ₱903 million of electric cooperatives.
While there are cooperatives with cheaper power rates than Meralco, industry data shows that on average, the company has a lower rate of ₱11.44 per kWh in 2024 compared with the average ₱11.50 per kWh rate of electric cooperatives. And with a franchise extended until 2053, Meralco is well positioned to continue powering progress for decades to come.
“As the country’s leading power distribution utility, Meralco is uniquely positioned to help drive inclusive economic growth and development in the countryside by ensuring improved electricity service that meets the evolving needs of communities and industries alike,” Casanova said