Meralco
Chapter 1
A. Rationale of the Study
The Manila Electric Company (Meralco) operates the electricity distribution franchise in Metro Manila and the entire provinces of Bulacan, Rizal, and Cavite; and portions of Laguna, Quezon, Batangas and Pampanga. With over 4.8 million customers and 30,247 GWh of energy sales in 2010, it is one of Southeast Asia’s largest distribution utility.
The franchise area of Meralco is home to 25.5 million people, roughly a quarter of the entire Philippine population of 94 million, and it is within Meralco's service area where almost half of the country's Gross Domestic Product (GDP) is produced, one-third from Metro Manila alone. Consequently, 54% of the total electricity usage in the Philippines, or almost three-fourths of all electricity used in Luzon, is consumed in the Meralco area.
Meralco also has majority ownership on Rockwell Land Corporation, known for its upscale real estate developments in Makati City, Pasig and Ortigas. Other subsidiaries of include Meralco Industrial Engineering Services Corporation, Corporate Information Solutions, Inc., Meralco Energy, Inc., e-Meralco Ventures, Inc., Meralco Financial Services Corporation, and Clark Electric Distribution Corporation, all of which play a supporting role on the distribution business.
Brief History
The company was organized as the Manila Electric Railroad and Light Company 108 years ago in 1903 to provide electric light and power and an electric street railway system to Manila and its suburbs. The facilities that Meralco built to provide these two services represented for many years the largest single investment of American private capital and know-how in the whole of East Asia.
Since the 1960’s, the company was dominated by the Lopez Group through its subsidiary First Philippine Holdings Inc. However, a series of internal and external events in the mid-2000s triggered a change in ownership in Meralco. The table below summarizes the current ownership structure of the
A. Rationale of the Study
The Manila Electric Company (Meralco) operates the electricity distribution franchise in Metro Manila and the entire provinces of Bulacan, Rizal, and Cavite; and portions of Laguna, Quezon, Batangas and Pampanga. With over 4.8 million customers and 30,247 GWh of energy sales in 2010, it is one of Southeast Asia’s largest distribution utility.
The franchise area of Meralco is home to 25.5 million people, roughly a quarter of the entire Philippine population of 94 million, and it is within Meralco's service area where almost half of the country's Gross Domestic Product (GDP) is produced, one-third from Metro Manila alone. Consequently, 54% of the total electricity usage in the Philippines, or almost three-fourths of all electricity used in Luzon, is consumed in the Meralco area.
Meralco also has majority ownership on Rockwell Land Corporation, known for its upscale real estate developments in Makati City, Pasig and Ortigas. Other subsidiaries of include Meralco Industrial Engineering Services Corporation, Corporate Information Solutions, Inc., Meralco Energy, Inc., e-Meralco Ventures, Inc., Meralco Financial Services Corporation, and Clark Electric Distribution Corporation, all of which play a supporting role on the distribution business.
Brief History
The company was organized as the Manila Electric Railroad and Light Company 108 years ago in 1903 to provide electric light and power and an electric street railway system to Manila and its suburbs. The facilities that Meralco built to provide these two services represented for many years the largest single investment of American private capital and know-how in the whole of East Asia.
Since the 1960’s, the company was dominated by the Lopez Group through its subsidiary First Philippine Holdings Inc. However, a series of internal and external events in the mid-2000s triggered a change in ownership in Meralco. The table below summarizes the current ownership structure of the