Meralco is composed of three bodies — the parent distribution utility (DU) itself, the generation arm Meralco PowerGen Corp. (MGEN), and the retail electricity supply (RES). Mr. Aperocho discussed the DU’s business drivers and service performance including its system loss, electricity rates, sales performance by residential, commercial, and industrial customers, and the major projects including network modernization, reliability improvement, and STL construction. The DU has little room for growth unless it expands to areas currently served by many inefficient, blackout-friendly and politics-protected electric cooperatives (ECs). I checked global data on transmission and distribution system loss — in 2023 the Philippines had a system loss of 10% which is similar to that of richer countries Saudi Arabia and the UK. Meralco’s distribution SL of 6.1% in 2026 is below the 6.5% cap set by the Energy Regulatory Commission.