Meralco looking to spend P50B for distribution business, generation investments

Manila Electric Co. (Meralco) is looking at a P50-billion spending program for its distribution business and generation investments moving forward, in efforts to ensure that the franchise is enabled for the economic upturn.

In a regulatory filing on Tuesday, Meralco said it continues to look out for ways to limit the adverse impact of the COVID-19 pandemic, which hit the company's business in the first nine months of the year.

"Today, we estimate that we need to execute close to P50 billion of capital expenditures for our distribution business and generation investments. We look at this as an opportunity to create jobs, propel business activities, and stimulate consumption," Meralco chairman Manuel Pangilinan said.

The company saw its consolidated core net income slip by 15% in the January to September period to P15.7 billion, while its consolidated reported net income fell to P11.3 billion.

"We are confident that we will surpass the P21-billion consolidated core net income guidance for 2020 provided in the first half of this year and be able to meet our committed return to shareholders," Pangilinan said.

The company said it shouldered P51.5-million worth of convenience fees charged by the online third-party payment gateway partner, which was then refunded to consumers who paid for such fees.

It also refunded some P64.1 million to customers for the months when bills were estimated, due to the implementation of community quarantines designed to curb the spread of COVID-19.

"As 2020 comes to a close, we remain to be on the lookout for ways to limit the adverse impact of this pandemic, while remaining steadfast in commitment to keeping the lights on," said Pangilinan.

"We firmly believe that there is opportunity in every crisis and, are hopeful that we will emerge stronger than ever," he added.

Meralco operates and maintains the electric distribution system in the cities and municipalities of Bulacan, Cavite, Metro Manila, and Rizal; and certain areas in the provinces of Batangas, Laguna, Pampanga, and Quezon.—AOL, GMA News