Manila Electric Company

Logo
Meralco Building at the Meralco Compound inPasig.
Formerly	Manila Electric Railroad and Light Company (1903–1919)
Company type	Private/Public
Traded as	PSE: MER
Industry	Power distributor
Predecessor	Compañía Electricista de Manila Compañía de Tranvías y Ferrocarriles de Filipinas
Founded	March 24, 1903; 122 years ago (1903-03-24)
Founder	Charles May Swift
Headquarters	Meralco Building,Ortigas Avenue,Pasig,Metro Manila,Philippines
Key people	Manuel V. Pangilinan, Chairman and CEO
Owner	see list
Website	www.meralco.com.ph

TheManila Electric Company, also known asMeralco (/mɜːrɑːlkoʊ/,Tagalog:[mɛˈɾalkɔ], stylized inuppercase), is anelectric power distribution company in thePhilippines. It isMetro Manila's only electric power distributor and holds the power distribution franchise for 39 cities and 72 municipalities, including the whole of Metro Manila and theexurbs that formMega Manila.

The name "Meralco" is anacronym forManila Electric Railroad and Light Company, which was the company's official name until 1919.

Organized in 1891 and beginning operations in late 1900,La Electricista was the first electric company to provide electricity toManila towards the close of theSpanish era. La Electricista had built a central power plant on Calle San Sebastián (nowHidalgo Street^[1][2]) inQuiapo, Manila.^[3] On January 17, 1895, its streetlights were turned on for the first time and by 1903, it had about 3,000 electric light customers.

On October 20, 1902, under theAmericanInsular Government, theSecond Philippine Commission began accepting bids to operate Manila's electric company, and by extension, providing public lighting to the city and its suburbs.Detroit entrepreneurCharles M. Swift was the sole bidder and on March 24, 1903, was granted the original basic franchise of the Manila Electric Company.^[4] March 24 thus is marked annually as the company's anniversary.

The Manila Electric Company acquired both La Electricista and theCompañía de los Tranvías de Filipinas, a firm that ran Manila's horse-drawntramways which was founded in 1882.^[5] Construction on the railed tramway began that same year. In addition to acquiring La Electricista'sCalle San Sebastián power plant, the company built its own turbine rotated by water steam generating electricity plant on Isla de Provisor (later becoming theManila Thermal Power Plant), which fuelled the railed tram system and eventually also provided the electric service. By 1906, the Manila Suburb Railway was founded and later merged with the Manila Electric Company. Forming the Manila Electric, Railway and Lighting Company. The name Manila Electricity, Lighting and Railroad Company (MELARCo) was also considered.^{[citation needed]}

Swift was awarded another franchise in 1906 to operate a 9.8 kilometres (6.1 mi) extension line fromPaco toFort McKinley andPasig and founded theManila Suburban Railway to operate this franchise.^[4] In 1919 this company merged with the Manila Electric Company.^[4] This extension was one of the most profitable of MERALCO's lines.^[4]

By the 1920, MERALCO had invested in transportation and owned a 170-strong fleet of streetcars, before switching over to buses later in that decade.

The company operated 52-miles oftrams untilWorld War II. The equipment and tracks of the system were severely damaged during the war and had to be removed.^[6]

By 1915, electricity generation and distribution became the main MERALCO's main income generator, overtaking its public transportation operations in terms of revenue. In 1919, it changed its official name to Manila Electric Company. By 1920, the company's power capacity had grown to 45 million kWh.

In 1925, MERALCO was acquired by the utility holding companyAssociated Gas and Electric, which had begun a massive expansion throughout theUnited States andCanada. With AGECO's financial backing, MERALCO began acquiring a number of existing utility companies in the Philippines, enabling the company to expand beyond Manila.

By 1930, MERALCO had completed construction of the Philippine's firsthydroelectric power plant, the 23MW Botocan Hydro Station.^[7] At the time, this plant was one of the largest engineering projects in Asia^{[citation needed]} and constituted the largest single private capital investment in the Philippines.^{[citation needed]} The additional capacity allowed the company to begin hooking up customers throughout themetropolitan area.

To drive demand for more power, MERALCO also opened a retail store in order to sell electric home appliances.^{[citation needed]}

During theSecond World War, theJapanese occupying forces forcibly transferred all of MERALCO's assets and holdings to the Japanese-controlledTaiwan Power Company.

This sectionneeds expansion. You can help byadding missing information.(November 2022)

By the war's end, most of the former Meralco facilities had been destroyed. AGECO was reorganized as General Public Utilities Corporation or GPU in 1946. MERALCO's autobus franchise was sold to Halili Transport.

In 1962,Eugenio López, Sr. of the influentialLópez family of Iloilo put togetherMeralco Securities Corporation (MSC), which acquired MERALCO, making it wholly Filipino-owned.^[8] During 1962-72, he increased MERALCO's power generating capacity by five times with the building of additional power stations in the Manila area with two more planned inRizal Province.^[9]

TheMeralco Building, designed byNational Artist of the Philippines for ArchitectureJosé María Zaragoza, was built during this period. TheMeralco Theater within it was inaugurated shortly thereafter, in March 1969.^[10]

In September 1972,President Ferdinand Marcos, who had begun feuding with the Lópezes,^[11] declaredMartial Law, acquiring and consolidating power and effectively extending his powers beyond the constitutional term limit which would have forced him to step down in 1973.^[12][13] A few weeks later in November 1972, he issued Presidential Decree № 40, whichnationalized the country's electric generation and transmission. A few more weeks after that, Marcos had López' son and namesake,Eugenio "Geny" López, Jr. arrested without formal charges, claiming that the younger López had been involved in an alleged assassination attempt against him.^[11]

Geny's arrest became a bargaining chip which eventually compelled the Lopezes to sell their controlling share of Meralco Securities Corporation to Marcos' associates late in 1973.^[11] Ownership of Meralco Securities Corporation was placed under a newly createdshell company called theMeralco Foundation, Inc., controlled by Marcos' brother-in-lawBenjamin Romuáldez,^[11] which made a down payment of about $1,500 for a "very minimal" total sale price of about $28 million (200 million pesos at the prevailing rate). Installment payments were supposed to be due starting two years later.^[14]

The Meralco Foundation takeover was immediately followed by a 100% increase in electric rates, with continuous increases throughout Romuáldez's management.^[15] A rate adjustment clause, which allowed MERALCO to adjust its rates depending on crude oil increases or higher dollar exchange rates, was also introduced.^[15]

In 1977, MSC was renamedFirst Philippine Holdings Corporation.^[8]

By 1978, all of the Philippines' major power plants were owned and operated by Napocor, including the Metro Manila plants that MERALCO had built beforehand in the 1960s.^{[citation needed]} By the end of the Martial Law period in 1981, MERALCO expanded even further into Cavite and western parts of Laguna, Rizal and Quezon provinces, as well as parts of southern Bulacan.^{[citation needed]}

Meralco Foundation's control of MERALCO lasted until thePeople Power Revolution in February 1986 when it defaulted on its payments under the terms of the original turnover of shares in 1973,^[16] although it took a five-year period before the shares were eventually reverted to the Lópezes in 1991.^[16]

This sectionis missing information about the sequestration process of thePresidential Commission on Good Government. Please expand the section to include this information. Further details may exist on thetalk page.(November 2022)

PresidentCorazon Aquino reverted company ownership to theLópez Group.^{[citation needed]} She also enacted an executive order that allowed the company to directly compete with Napocor.^[17]

On March 18, 1989, MERALCO unveiled its new and current corporate logo.^[18]

In 1990, MERALCO acquired the electric facilities and other assets of the Communications and Electric Development Authority, one of two companies that distributed power in Cavite Province for much of the 1970s and 80s.^[19]

Between 2009 and 2012, the López Group would reduce its 33.4% holdings in MERALCO by selling most of its shares to theFirst Pacific Group.^[20][21][22] By 2012, the López Group's holdings in MERALCO would be reduced to 3.95%.^[23]

The First Pacific Group, throughMetro Pacific Investments Corporation (MPIC), currently holds the majority share in MERALCO,^[21] followed by theGokongwei Family'sJG Summit Group. (See further:ownership )

In 2014 and 2015, MERALCO requested the16th Congress to tackle the extension of its franchise early, although its renewal was not due until six years later, in 2020.

On April 11, 2025, PresidentBongbong Marcos signed Republic Act No. 12146 which renewed MERALCO's franchise for another 25 years from its expiration in 2028.^{[24][25][26][27]}

Meralco is facing aPhilippine legislative inquiry/investigation for alleged excessive pricing.^[28] The government has considered a plan to take over Meralco, to reduce electricity bills. Meralco andNational Transmission Corporation (TransCo) blamed each other for the high power rates.^[29] Meralco also blames high power generation costs, high transmission costs and government taxes imposed on the electricity sector from power generation to distribution.Government Service Insurance System (GSIS) President Winston García, however, blamed Meralco's inefficiency, its "bloated bureaucracy" and its sourcing of power from independent power producers (IPPs) also owned by the López Family, and the need to amend the Electric Power Industry Reform Act (EPIRA) of 2001. Oscar López said that if the GSIS would buy the Meralco shares, they must buy in whole cash, while many businessmen also said that taking over Meralco is not the way to reduce electricity prices, which depends on the national government and the President. The issue was also seen as a purposeful diversion from the then-ongoingZTE NBN scandal and other government issues.^[30] A perceived lack of general understanding regarding the issue of system loss, inherent in the business of utilities prompted Meralco's former holding company, First Philippine Holdings, to issue advertisements explaining systems loss. The latter had featuredJudy Ann Santos prominently to the extent she receivedbashing/online hate and calls for the general public to boycott her - not watch any shows or movies she was or would be starring in, as well as patronize products she was an endorser for.^[31]

TheDepartment of Justice (Philippines) filed syndicated (fraud) charges against Meralco in its August 22, 2008 31-page resolution, filed with thePasig Regional Trial Court. The May 29 National Association of Electricity Consumers for Reform (Nasecore) complaint accused Meralco of "illegally declaring as income ₱889 million in consumers' money, which represents interest from meter and bill deposits consumers had been paying since 1995."^[32] No bail was recommended for all the accused, 2006 officers of Meralco, to wit: Meralco chairman and CEO Manuel Lopez, executive vice president and chief financial officer Daniel Tagaza, first Vice-resident and treasurer Rafael Andrada, vice president and corporate auditor and compliance officer Helen De Guzman, vice president and assistant comptroller Antonio Valera, and senior assistant vice president and assistant treasurer Manolo Fernando; 2006 Meralco directors Arthur Defensor Jr., Gregory Domingo, Octavio Victor Espiritu, Christian Monsod, Federico Puno, Washington Sycip, Emilio Vicens, Francisco Viray and formerPrime MinisterCesar Virata.

Nasecore's complaint accusing Meralco of "illegally declaring as income 889 million pesos in consumers' money, which represents interest from meter and bill deposits consumers had been paying since 1995," was immediately refuted by the accused company as the alleged ₱889 million only stemmed from a generally accepted accounting principle of reversing Meralco's earlier provision for meter deposit interests which, earlier set at 10% per annum was deemed too high and was set to the recommended 6%.^[33] Meralco also questioned how a syndicated estafa case can arise when it has already announced and committed that it will be refunding to customers who paid meter deposit principals plus interest months ahead of the ERC prescribed schedule and has allocated enough funds for the said refund.

Meralco is also involved in theGSIS-Meralco bribery case.^[34]

On October 6, 2008, the Pasig Regional Trial Court Branch 71 dismissed the syndicatedestafa case filed against the Meralco board of directors, for the prosecution failed to establish all the elements of syndicatedestafa.

Presiding Judge Franco Falcon, pointed out in the ruling that the board is not the kind described by the law as being formed to perpetrate an illegal act for the board of directors were elected by stockholders. The court explained, "Therefore, the accused can never be charged of taking part in the commission of syndicatedestafa not only because they are not part of a syndicate as contemplated by law in PD 1689, but more so, because there was absolutely noestafa committed."

According to Philippine law, to constitute syndicatedestafa, the subject money or property must be received by the offenders. The money represents the accrued interests on the bill and meter deposits, which were paid by Meralco customers, not directly to the board, but to the various Meralco business centers where the customers transacted. Meralco expressed elation over the dismissal.^[35]

A complaint was filed by Lucy Yu against Meralco which, on December 9, 1999, its representatives, forcibly entering her office at the New Supersonic Industrial Corp. inValenzuela, shut off the electricity in the factory and Yu's residence.

TheCourt of Appeals later ruled that Meralco violated the law when it cut off the electric supply of a consumer without notice; the decision was later upheld by theSupreme Court in late June 2023, with Yu being entitled to ₱150,000 in damages. The court said that a written notice must be given to the consumer at least 48 hours prior to Meralco's disconnection of its electric service on grounds cited under Section 4(a) ofRepublic Act No. 7832; in that case, a consumer's right to due process was violated.

Spokesperson Joe Zaldarriaga, in a statement, said that Meralco will respect and abide by the said decision; however, he said that the incident occurred when Meralco was already implementing a policy of serving prior disconnection notices.^[36]

The2.4 GHz band is mostly used by Wi-Fi and Bluetooth. In 1993, theNational Telecommunications Commission allocated the 2.4 GHz band for the exclusive use by Meralco in Metro Manila,Central Luzon, andCalabarzon for the operation of their Supervisory Control and Data Access (SCADA) system which controls and monitors Meralco’s substations.^[37] This has made the use of the 2.4 GHz band in the Philippines illegal, in spite of theInternational Telecommunication Union declaring the 2.4 GHz band as an ISM unlicensed band.^[38]

On September 12, 2003, the NTC issued Memorandum Circular No. 09-09-2003, which lifted the ban on the 2.4 GHz band.^[39]

Meralco servesMetro Manila, where it is the sole electricity distributor, as well as some nearby provinces, likeBulacan,Cavite,Laguna,Batangas,Rizal,Quezon.Bulacan,Cavite, andRizal are solely served by Meralco, but on some provinces, it only serves some parts, like in Laguna, Batangas, and Quezon, where most or some areas are served byelectric cooperatives. In Laguna and Quezon, most part of those provinces are served by the company, but other areas, mostly rural municipalities, are served by electric cooperatives. In Batangas, onlySanto Tomas, theFirst Philippine Industrial Park and First Industrial Township SEZ both inTanauan,Batangas City,San Pascual and parts ofLaurel (Barangays of Niyugan and Dayap Itaas) andCalaca (parts of Barangay Cahil) which facingTagaytay–Nasugbu Highway are served by Meralco, and the rest of the province are franchise areas of electric cooperatives. InPampanga, some barangays inCandaba are served by the company.

MERALCO is 48% owned byFirst Pacific-owned &/or linked, andManny Pangilinan-led entities^[40]. It'spublic ownership level is at 26.09%%^[41] with the following breakdown as of June 30, 2025,^[42] and as amended on July 23, 2025 regarding transfer of shares in escrow fromLandbank of the Philippines to aSan Miguel Corporation subsidiary:

* InGamboa v. Finance Secretary Teves (G.R. No. 207246 | June 28, 2011): TheSupreme Court of the Philippines ruled that under Section 11, Article XII of theConstitution, “capital” in apublic utility refers only to shares entitled to vote in the election ofdirectors. Thus, Preferred shares that have been vested withsuch power are included in the relevant computations, in addition to common shares that naturally are appurtenant with voting privileges in every aspect.
** While the Philippine Central Depository (PCD) is listed a major shareholder, it is more of a trustee-nominee for all shares lodged in the PCD system rather than a single owner/shareholder. Major beneficial shareholders (i.e. those who own at least 5% of outstanding capital stock with voting rights) hidden, if any, under the PCD system are checked/identified and are disclosed with the Definitive Information Statement companies are submitting annually to thelocal bourse andSecurities and Exchange Commission^[49][50]

• Meralco Reddy Kilowatts (MICAA basketball team)
• Meralco Bolts (PBA team)
• FC Meralco Manila (Philippines Football League team)
• Meralco Power Spikers (Shakey's V-League andPhilippine Super Liga team)

• John F. Cotton Corporate Wellness Center
• List of electric distribution utilities in the Philippines

• Electric power companies of the Philippines
• Companies listed on the Philippine Stock Exchange
• Companies based in Pasig
• Companies in the PSE Composite Index

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