Orange Banner with a collage of Solar Light, Solar Panel, Woman and a Child.
Orange Banner with a collage of Solar Light, Solar Panel, Woman and a Child.

Our Materiality Matrix

The results of our 2024 DMA underscore the interconnectedness of the Group’s impacts and financial performance. The 19 issues considered in our DMA remain material and will guide our granular assessment of IROs as we progress towards compliance with PFRS S1. For more information about our first DMA, including details about how it was conducted, please refer to the One Meralco 2024 Integrated Report

Value Creation Framework

This framework demonstrates how we align our resources with strategic priorities to harness our growth platforms, generate stakeholder value, and advance meaningful contributions to sustainable development.

We leverage our growth platforms to deliver value to our stakeholders and drive meaningful outcomes for sustainable development by aligning the use of our capitals with our strategies.

Intellectual

InputOutput

122 Years

of industry leadership

Institutional knowledge on laws, policies, and best practices in the electric utility sector

The enduring Meralco brand, including our logo, mission, vision, and core values

Expanded understanding of the market that enables us to develop better services for our customers and drive innovation

Manufactured

InputOutput

156 Substations

22,107.4 km power lines

2,652 MWac

net sellable capacity across our diversified power generation portfolio

5.85% system loss, lower than the 6.5% regulatory cap, resulting in PhP 6.5 billion in customer savings

Reduced number of power outages in our franchise area, as evidenced by 12.5% improvement in SAIFI

Shortened power interruptions for our customers, as indicated by 9.9% improvement in SAIDI

Estimated Equivalent of 430,000 households and businesses powered by MGEN with lower carbon energy

Nature

InputOutput

5.1 million tonnes

of feedstock coal

11 million liters

of feedstock oil

1,371.5 GL

Of cooling water

2.5% increase

in Group-wide greenhouse gas emissions

0.6% increase

in DU water use

Kept solid waste out of our land and oceans, as proven by 98% DU annual waste diversion rate and 89,000 MT coal ash diverted by MGEN

Human

InputOutput

18,211

employees

285

third-party workers

Helped unlock the full potential of our employees, as upported by 6.4% increase in average training hours

21.8% decrease in LTIFR as a result of strengthened OHS programs

24% female representation in the DU, above the 14% global industry average

4.7% DU gender pay gap, lower than the 19% global industry average

Financial

InputOutput

PhP

832.9 billion

in assets

PhP

108.9 billion

in CapEx

Delivered greater value to our shareholders, as demonstrated by 16.5% increase in dividends

PhP 497.3 billion in consolidated revenues, an increase of 6% from 2024

PhP 50.6 billion consolidated core net income, up by 12% from 2024

Social and Relationship

InputOutput

3,256 suppliers and vendors

Partnerships with communities and charitable organizations for CSR initiatives

Provided 375 families access to clean and potable water with the energization of one community water facility.

563 teachers and students empowered with better learning conditions via the re-electrification of five public schools.

616 suppliers fully compliant with our sustainability standards, as part of the Meralco Sustainability Scorecard.

8,574 residents benefited from uninterrupted medical care through the electrification of three rural health centers.

779 members benefited from solar mobile irrigation pump, fish processing and water filtration facility, and electric tricycle charging station granted to three agriculture and livelihood associations.

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Our Impacts, Risks, and Opportunities

Regulatory Decision Risks

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1

Uncertainty in Regulatory Outcomes

The outcome of pending and future regulatory determinations, including those related to rate-setting frameworks and applications, may differ from the Company’s proposals. Such outcomes may affect the timing and level of cost recovery.

2

Policy and Methodology Changes

Changes in regulatory approaches, including shifts in methodologies, performance frameworks, or cost recovery mechanisms, may influence the determination of allowable revenue and returns.

3

Adoption of New or Evolving Regulatory Frameworks

The introduction of new methodologies or standards may result in adjustments to the previously applied approaches, with possible implications for asset valuation, regulatory treatment and revenue recovery.

4

Regulatory and Legal Developments

Ongoing regulatory reviews, audits, or legal proceedings may affect certain cost items or recovery mechanisms. These developments may influence future applications and regulatory outcomes across the industry.

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Cash Flow, Funding, and Contract Compliance Risks

5

Regulatory Recovery, Cost Pass-Through, and Revenue and Cost Variances

The Company’s ability to recover certain costs and charges is subject to regulatory approval and prescribed mechanisms. Differences between actual costs incurred and recoveries recognized affect cash flow timing and financial results. Adjustments arising from operational or market-related factors may result in temporary variances between billed and recoverable amounts, which may impact short-term financial performance.

6

Customer Receivables

Collection levels may be influenced by customer payment behavior, economic conditions, and regulatory directives. These factors may affect receivables and working capital.

7

Funding and Liquidity

Access to funding and financing conditions may vary depending on market developments and credit considerations. These may affect the Company’s liquidity position and ability to fund operations and investments.

Market, Regulatory and Competition Risks

8

Demand and Customer Mix Changes

Changes in customer demand and consumption patterns influenced by market and regulatory developments may affect demand forecasts, supply planning, and contract management, with potential implications for cost recovery over time. Retail competition and open access may expand customer choice and participation, and influence the Company’s customer base, demand profile, and revenue mix.

9

Power Supply and Demand Management

Variability in customer demand and supply requirements of RES business may affect the management of power supply portfolios and exposure to market-based pricing, with corresponding implications on procurement strategies and cost management.

10

Competitive Landscape

Increasing competition and evolving customer expectations in non-distribution businesses may affect pricing dynamics, service offerings, and market positioning. The Company continues to respond through innovation and customer-focused solutions.

IT Systems and Cybersecurity Risks

11

IT Systems Reliability and Performance

Disruptions or limitations in IT systems may affect operational processes, service delivery, or data management. Ongoing investments and upgrades are essential to maintain system performance and reliability.

12

Cybersecurity and Data Protection

Cybersecurity threats and data- related risks continue to evolve alongside increased digitalization. These may affect system security, data integrity, and overall operations if not effectively managed.

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Business Interruption, Project Construction, and Execution Risks

13

Business Continuity

External events and operational disruptions may affect service continuity, infrastructure integrity, and related operations. Ongoing investments in resilience and preparedness help mitigate potential impacts.

14

Project Execution and Delivery

Delays or changes in project timelines and implementation may arise due to operational, regulatory, or market factors. These may influence the timing of project benefits and overall execution.

15

Contract Compliance

The ability to meet contractual and regulatory requirements remains subject to various operational and external factors, which may affect project or service obligations.

16

Operational Efficiency and Third-Party Dependencies

The execution of business initiatives may be influenced by process efficiency, resource availability, and coordination with third-party providers. These factors may impact timelines, costs, and delivery outcomes.

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Stranded Asset Risk

17

Asset Utilization and Recovery

Recovery of pre-development directions, or operational requirements may affect utilization or recoverability of certain assets and pre-development investments over time.

Our Outlook 
and Strategy

The urgency of the global energy transition continue to intensify as climate risks grow more pronounced. Yet for emerging economies such as the Philippines, the pathway to a low-carbon future must move in step with equally critical imperatives of energy security, affordability, and sustained economic progress. Stable baseload capacity—supported by thermal generation—remains essential to power industries, enable digital infrastructure growth, and safeguard grid stability, particularly as variable renewable energy (“RE”) expands. A diversified energy mix therefore remains central to ensuring that the country’s transition strengthens, rather than compromises, economic development.

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Horizon 1

2021-30

One Meralco has initiated a low- carbon transition to serve the country’s growing energy demand with greener power.

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Horizon 2

2031-40

We will accelerate the Group’s transition to cleaner energy through the progressive adoption of next- generation technologies.

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Horizon 3

2041-50

One Meralco is committed to driving deep decarbonization and advancing sustainability leadership in the energy sector, with the ambition of becoming coal-zero by 2050.

Download our 2025 Annual Reports

Diagram of the Value Creation Framework.
Diagram of the Value Creation Framework.
Diagram of the Strategic Thrusts.