COMPANY PROFILE -The Manila Electric Company (Meralco)
Business Sector :Power Distribution
Operating Geography :Philippines, Southeast Asia, Global
About The Manila Electric Company (Meralco) :
The Manila Electric Company, also known as Meralco, is a Philippine power distribution company. It is Metro Manila's sole electric power distributor, with franchises for 36 cities and 75 municipalities, encompassing the whole National Capital Region and the exurbs that comprise Mega Manila. Meralco is an abbreviation for Manila Electric Railroad and Light Company, the company's actual name until 1919. Its franchise area of about 9,685 km2 represents for only 3% of the Philippines' total land area yet accounts for 55% of the country's electrical output. Meralco will be celebrating 119 years of service in 2022, and is dedicated to providing reliable and inexpensive energy. The Manila Electric Company (Meralco) was recognised for displaying excellence in stakeholder communication at the recently concluded Gold Quill Awards, one of the most prestigious business communication awards programmes in the world. As of early 2022, the Manila Electric Company employees more than 5,000 people.
The USP of Meralco lies in it being the largest power distribution company in the Philippines. Meralco’s mission statement reads, “To provide our customers the best value energy solutions—reliably, affordably, superbly, and sustainably.” Meralco’s vision statement reads, “To be a world-class energy solutions provider, powering our nation and empowering our people today and for generations to come.”
The Manila Electric Company (Meralco) Revenue :
PhP 318,547 million – FY ending 31st March 2021
PhP 275,304 million – FY ending 31st March 2020
Competitive Analysis of The Manila Electric Company (Meralco)
The SWOT analysis for The Manila Electric Company (Meralco) is presented below in a matrix followed by the detailed analysis report:
Strengths | Weaknesses |
1. Largest private sector electric distribution utility company in the Philippines
2. Diversified service offerings through subsidiaries
3. Consistently increasing strong revenues from past 5 years
4. Highly customer-focused organization
5. Recipient of many prestigious awards
| 1. Dependency of Meralco on fossil fuels for its energy mix |
Opportunities | Threats |
1. Opportunity to move towards sustainable future in the wake of energy crisis
2. Expansion of the online self-service business
3. Harnessing the power of data to drive business success
4. High investments for its capex program to meet growing demand
| 1. Blackouts due to mounting energy crisis
2. Costlier fuel and a weaker peso have prompted Meralco to implement rate hikes
3. Rising competition in the retail power market
|
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Detailed SWOT Analysis of The Manila Electric Company (Meralco)
Strength
This section is available only in the 'Complete Report' on purchase.
Weakness
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Opportunity
1. Opportunity to move towards sustainable future in the wake of energy crisis: The Philippines is experiencing an energy crisis. The expanding number of dwellings with access to electricity, as well as rising industrial demand for power, are driving the surge. Indeed, Meralco anticipates that its electrical generation will increase from 46,073 gigatonnes in 2021 to 65,509 gigatonnes in 2031. Ray Espinosa, President and CEO of Manila Electric Company (Meralco), sees the difficulty as an opportunity. He assures that the corporation will continue to prioritise renewable energy and increased sustainability. Meralco has invested in several solar projects, including the collaboration with AP, which includes a one-megawatt peak capacity pilot solar project at the company's manufacturing factory in Guiguinto, Bulacan, which generates around 1.33 gigatonnes of energy per year. Meralco is also interested in nuclear energy. The company's franchise territory, which includes Metro Manila and several neighbouring provinces, accounts for only 3% of the entire geographical area of the Philippines. However, Ray is focused on extending this already sizable franchise territory. Ray has already identified a number of cooperatives in which Meralco would be interested and plans to pursue them in the coming months.
The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.
Threat
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The PESTSLE analysis for The Manila Electric Company (Meralco) is presented below in a matrix followed by the detailed analysis report:
Political | Economical |
1. Impact of Russia-Ukraine war on the energy sector | 1. Rise in rates due to weak peso and high oil prices |
Social | Technological |
1. Improvement in bill design to facilitate convenience
2. Provision of full electrification to underserved areas
| 1. Accelerating digital transformation through various initiatives
2. Setting of Information, Communication and Technology (ICT) command and control center
|
Legal | Environmental |
1. Approval of rate hike by the courts
2. Involvement in lawsuits impact the reputation of the company
| 1. Commitment to become an environmentally responsible firm
2. Focus on employing green mobility
|
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Detailed Pestle Analysis of The Manila Electric Company (Meralco)
Political
This section is available only in the 'Complete Report' on purchase.
Economic
1. Rise in rates due to weak peso and high oil prices: The Philippines' major distribution company, Manila Electric Co. (Meralco), raised power rates in franchise regions in September, owing primarily to higher fuel costs and peso depreciation. Meralco announced a rise in electricity costs of PHP0.3907 per kilowatt hour, bringing rates to PHP9.9365 per kWh, up from PHP9.5458 per kWh last month. Because of the ongoing Malampaya gas supply constraint, First Gas Sta. Rita and San Lorenzo have expanded their use of more expensive alternative fuel to assure uninterrupted supply. The lower peso boosted charges from independent power producers (IPPs) and power supply agreements (PSAs), with the dollar accounting for 98 percent of overall IPP expenses and 36 percent of PSA prices. In August 2022, the Philippine peso reached an all-time low against the US dollar, reaching PHP57. Lower Wholesale Electricity Spot Market (WESM) costs, on the other hand, countered increasing IPP and PSA costs as the Luzon grid's power supply improved. Meralco stated that the WESM charge reduction is PHP3.7473 per kWh. Transmission prices for residential users fell by PHP0.0432 in August, while taxes and other charges increased by PHP0.0758 per kWh.
Social
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Technological
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Legal
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Environmental
This section is available only in the 'Complete Report' on purchase.
On purchase the The Manila Electric Company (Meralco) SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 4 hours might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Check Out Analysis of Other Relevant Companies
References used in The Manila Electric Company (Meralco) SWOT & PESTLE Analysis Report
1. Corporate Profile - https://company.meralco.com.ph/corporate-profile
2. Annual Report - https://meralcomain.s3.ap-southeast-1.amazonaws.com/2022-08/2021_meralco_ar_08.04.pdf
3. Energy and economic impact of Russia-Ukraine war - https://www.bworldonline.com/opinion/2022/02/28/432834/energy-and-economic-impact-of-russia-ukraine-war/
4. High oil prices, weak peso push Meralco rates upward - https://www.pna.gov.ph/articles/1183203
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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