The Manila Electric Company (Meralco) is ramping up its network capital investments and tightening enforcement against unauthorized power hookups as part of a broad initiative to reduce system losses that inflate consumer utility bills.
Meralco Head of Utility Economics Larry Fernandez stated on Sunday, Aug. 16, that the power firm is implementing a dual-track strategy targeting both technical and non-technical distribution inefficiencies.
To address technical losses—energy dissipated as thermal energy through transformers and distribution lines—Meralco is expanding substation capacities and modernizing power corridors.
On the non-technical side, which stems primarily from power theft and illegal connections, the distributor is pairing aggressive field operations with tamper-resistant infrastructure.
System loss recovery charges remain a critical point of public concern on monthly bills. Fernandez noted that passing a portion of these costs to end-users is authorized under Republic Act No. 7832 (Anti-Electricity and Electric Transmission Lines/Materials Pilferage Act) and the Electric Power Industry Reform Act of 2001.
However, Meralco emphasized that financial penalties collected from power thieves do not count as corporate revenue; instead, all recovered funds are credited back to paying consumers as bill deductions.
Moving forward, the utility company plans to expedite the deployment of smart grid networks and advanced metering infrastructure across its service area to enable real-time grid monitoring, quick fault detection, prompt identification of unusual usage linked to theft, and better load management for commercial and residential accounts.