Meralco unlikely to reduce capex, chairman says

POWER DISTRIBUTOR Manila Electric Co. (Meralco) is likely to retain its planned capital expenditure (capex) program for 2026, its chairman said, as the group reviews spending plans amid global uncertainties.

“There is an approved one for 2026, of course. But I doubt whether we will reduce it for Meralco and MGEN (Meralco PowerGen Corp.),” Meralco Chairman Manuel V. Pangilinan told reporters on Tuesday.

Meralco earlier said it plans to invest up to P30 billion in distribution projects aimed at improving customer service.

For 2025, the company’s capex reached P108.9 billion. About 73%, or P80 billion, was allocated to the MTerra Solar project and other renewable energy developments.

Around P28.5 billion was spent on Meralco’s distribution business, particularly for projects related to new connections, asset renewals, load growth, and pole relocation.

Mr. Pangilinan said he has asked other major companies under Metro Pacific Investments Corp. (MPIC), except Meralco, to reassess their budgets this year.

“I told the major companies within the group, ‘Let’s redo our budget and rethink whether we should update based on these latest trends, because part of the great uncertainty is when will this Iran (war) finish,” he said.

“So at least we should settle down and have better footing on what it is,” he added.

Despite this, Mr. Pangilinan said he remains optimistic about the country’s economic growth.

“I’m just concerned that it could obviously affect the rate of growth. But I think we will still grow. We will still definitely grow. And I think we should push more for the sake of this country. Continue to invest as much as we can,” he said.

In 2025, MPIC reported a 15% increase in consolidated core net income to P27.1 billion, driven by higher contributions from its power, water, toll road, and healthcare businesses.

“Looking ahead, our task remains straightforward: to grow responsibly while maintaining financial discipline. If we stay focused on execution and on serving the needs of the communities that depend on us, we believe the Group will remain resilient. At the end of the day, our businesses exist to serve the country,” Mr. Pangilinan said last week. 

MPIC is one of the three main Philippine units of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

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