Meralco

La Electricista

Organized in 1891 and beginning operations in late 1900, La Electricista was the first electric company to provide electricity to Manila towards the close of the Spanish era. La Electricista had built a central power plant on Calle San Sebastián (now Hidalgo Street[1][2]) in Quiapo, 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.

Founding of the Manila "Electricity", "Railroad" and "Lighting" Company (MERaLCo)

On October 20, 1902, under the American Insular Government, the Second Philippine Commission began accepting bids to operate Manila's electric company, and by extension, providing public lighting to the city and its suburbs. Detroit entrepreneur Charles 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 the Compañía de los Tranvías de Filipinas, a firm that ran Manila's horse-drawn tramways which was founded in 1882.[5] Construction on the railed tramway began that same year. In addition to acquiring La Electricista's Calle San Sebastián power plant, the company built its own turbine rotated by water steam generating electricity plant on Isla de Provisor (later becoming the Manila 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.

Manila Suburban Railways Company

Swift was awarded another franchise in 1906 to operate a 9.8 km extension line from Paco to Fort McKinley and Pasig and founded the Manila 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 of trams until World War II. The equipment and tracks of the system were severely damaged during the war and had to be removed.[6]

Power generation and distribution

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 company Associated Gas and Electric, which had begun a massive expansion throughout the United States and Canada. 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 first hydroelectric power plant, the 23MW Botocan Hydro Station.[7] At the time, this plant was one of the largest engineering projects in Asia and constituted the largest single private capital investment in the Philippines. The additional capacity allowed the company to begin hooking up customers throughout the metropolitan area.

To drive demand for more power, MERALCO also opened a retail store in order to sell electric home appliances.

World War II

During the Second World War, the Japanese occupying forces forcibly transferred all of MERALCO's assets and holdings to the Japanese-controlled Taiwan Power Company.

Postwar

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.

Acquisition by the López group

In 1962, Eugenio López, Sr. of the influential López family of Iloilo put together Meralco 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 in Rizal Province.[9]

The Meralco Building, designed by National Artist of the Philippines for Architecture José María Zaragoza, was built during this period. The Meralco Theater within it was inaugurated shortly thereafter, in March 1969.[10]

Martial law and Romualdez takeover

In September 1972, President Ferdinand Marcos, who had begun feuding with the Lópezes,[11] declared Martial 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, which nationalized 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]

After martial law

President Corazon Aquino reverted company ownership to the López Group. 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]

Entry of First Pacific and JG Summit groups

Between 2009 and 2012, the López Group would reduce its 33.4% holdings in MERALCO by selling most of its shares to the First 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, through Metro Pacific Investments Corporation (MPIC), currently holds the majority share in MERALCO,[21] followed by the Gokongwei Family's JG Summit Group

Early renewal initiatives during the 16th Congress

In 2014 and 2015, MERALCO requested the 16th Congress to tackle the extension of its franchise early, although its renewal was not due until six years later, in 2020.

Franchise renewal

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

2008 legislative investigation on high power rates

Meralco is facing a Philippine legislative inquiry/investigation for alleged excessive pricing.[28] The government has considered a plan to take over Meralco, to reduce electricity bills. Meralco and National 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-ongoing ZTE NBN scandal and other government issues.[30]