Volume 1 No. 2 - Meralco

meralco.com.ph

Volume 1 No. 2 - Meralco

N0.1 VOL.1 JANUARY-APRIL 2011


From the Top

Our second edition of the Meralco Power Club Magazine brings

you a diverse package of content. We feature our efforts to reinforce

the electric distribution system and to augment the dwindling

power supply; the Customer Choice Program and how it benefits

clients; and, the exciting future we face with the Meralco Innovations.

Not to be missed are updates on Open Access, the international

citation for our Corporate Governance, and the newly-launched

One Meralco Foundation.

Our main feature focuses on the semicon and electronics industry,

acknowledged as the main driver of the Philippine economy.

The Chairman and the President of the Semiconductor and

Electronics Industries in the Philippines or SEIPI, discuss the industry’s

remarkable performance as well as

goals and vision not only for its members

but more importantly, for the Philippines’

economic growth and development, a

vision Meralco likewise aims for.

Your feedback is most valuable to

us. How do you find our publication

thus far? Tell us what you think. We offer

you a wide array of convenient

choices to communicate with us.

We hope you find some time to

send us an email, write or call

us, meet up with our Relationship

Managers. You

may also be interested to

try out our Facebook

page, and perhaps,

follow us on Twitter.

A lot of possibilities

offering yet one aim: to

serve you even better.

Publisher: Meralco

A joint project of

Corporate Business Group

Marketing and Customer Solutions

Corporate Communications

Advisers:

Victor S. Genuino

VP & Head, Corporate Business Group

Jose Antonio T. Valdez

VP & Head, Marketing & Customer

Solutions

Published three times a year

for key officers

of Meralco corporate accounts

Editorial office:

Corporate Communications

Corporate Business Marketing

11th floor, Lopez Building

Meralco Center, Ortigas Avenue

Pasig City

Tel. (632)632-8771/ (632)632-8551

ALFREDO S. PANLILIO

Senior Vice President

Head, Customer Retail Services

and Corporate Communications

Fax (632)632-8501/ (632)6328551

Website

http://www.meralco.com.ph

We welcome comments and

suggestions.

Please send them to:

meralcopowerclub@meralco.com.ph

20 POWER CLUB I NO. 2 VOLUME 1 I 2011


Sections

&

Articles

Special Updates:

4 Energy Regulatory Commission

creates technical working group

for Open Access

Table of Contents

Cover Story:

14-16 SEIPI:

Seeking more support and trade policies

for healthier economy

5 Meralco gains international recognition

for Corporate Governance

Power Projects:

Meralco facilities upgrade & in-the-pipeline projects

8 Completed projects boost

electric services capacity

9 Meralco enters partnership

to build power plant in Subic

10 -11 Bukas, Higit na Magliliwanag ang Pilipinas.

Meralco innovation advertisement

17-18 SEIPI: Working towards gains

Community:

19 Meralco enhances IRRI facilities

to boost global rice production

20 Grand affirmation:

One Meralco Foundation launched

Power Events:

21 Meralco launches Power-Up forum series

for corporate customers

22 Sharing innovative power solutions

in Green Retail Agenda conference

FEATURES

Power-Up:

Meralco Customer Solutions

6-7 Meralco Customer Choice Program

from the Linde Philippines perspective

23 Meralco reinforces partnership with the

Semiconductor & Electronics Industry

Power Projects:

12-13 Interview with Meralco COO Oscar S. Reyes:

Creating value for the company and its

stakeholders

POWER CLUB I NO. 2 VOLUME 1 I 2011 23


Special Updates

Updates on Open Access and Retail Competition

ERC creates technical

working group

for Open Access

The Energy Regulatory Commission

(ERC) in its Resolution No. 03 series

of 2011, created a technical working

group (TWG) on Feb. 28, 2011

to resolve issues on the account,

billing and settlement of wholesale

energy purchases in the competitive

retail electricity market. The TWG is

composed of representatives from

the ERC, Retail Electricity Suppliers

Association of the Philippines (RESA),

Meralco, Private Electric Power

Operators Association (PEPOA),

Philippine Rural Electric Cooperatives

Association (Philreca), the Market

Operator, Philippine Independent

Power Producers Association (PIPPA)

and National Grid Corporation of the

Philippines (NGCP).

Mr. Nixon Hao of Energy

Management is Meralco’s representative

to the TWG, with Mr. Lawrence

Fernandez of Utility Economics as

alternate.

ERC declares Open Access and

Retail Competition

On June 6, 2011, the ERC released

its Decision on Case No. 2011-004 RM,

wherein the ERC stated that:

All the legal preconditions for OARC

have been satisfied;

There is sufficient generation supply

and adequate transmission network to

support the competitive retail electricity

market;

A simplified customer switching

system would be put in place by the

ERC in lieu of the B2B system as a

transitory step; and,

All other preparations for OARC

can be completed in time for OARC

commencement on Dec. 26, 2011.

On the same date, June 6, 2011, the

(Second of a series)

ERC released Resolution No. 10

series of 2011 which declared Dec.

26, 2011 as the commencement

date for OARC.

On July 7, 2011, the ERC

conducted a ceremonial launching

of the Competitive Retail Electricity

Market (CREM) at the Rockwell

Tent in Makati City. During the

activity attended by OARC

stakeholders, competitive retail

electricity suppliers were able to

present their offerings to potential

contestable customers.

Transitory Rules

for the Initial Implementation

of OARC

Following the declaration of the

Open Access date, the ERC released on

June 17 the proposed Transitory Rules

for the Initial Implementation of OARC.

The draft Transitory Rules contained

the guidelines for the smooth shift to a

competitive retail electricity market.

The ERC conducted a public

consultation to discuss the comments

and recommendations of industry

participants on the proposed Rules on

July 7, 2011.

It is expected to release a second

draft of the Rules and conduct another

round of public consultation to finalize

the Transitory Rules.

DOE Creates Steering

Committee for OARC

On June 17, 2011, the Department

of Energy (DOE) released Department

Circular No. 2011-006-0006, creating a

Steering Committee to define policies

for the commencement of OARC.

The Committee is chaired by the DOE

and is composed of representatives

from the Philippine Electricity Market

Corp. (PEMC), National Electrification

Administration (NEA), National Power

Corp. (NPC), National Transmission

Corp. (TransCo), Power Sector Assets

and Liabilities Management Corp.

(PSALM) and National Grid Corp. of the

Philippines (NGCP).

The Department of Finance (DOF)

and Philippine Economic Zone Authority

(PEZA) were invited to become

members of the Committee. The ERC

was also invited to co-chair the Steering

Committee, but the ERC, through

Resolution No. 12, Series of 2011

(released last July 27, 2011), declined

the invitation, stating that it is giving

the DOE full and sufficient discretion

to review the policies for OARC and

give recommendations relative to the

competitive retail electricity market.

The Commission, however, expressed

full support and promised to extend its

cooperation to the Steering Committee.

(To be continued)

4 POWER CLUB I NO. 12 VOLUME 1 I 2011


Meralco won international

recognition for its corporate

governance performance

and was adjudged among the

“Best in Asia on Corporate

Governance” for 2011 by

Corporate Governance Asia.

First Vice President,

Treasurer and Head of Investment

Management Rafael

L. Andrada, and Corporate

Governance Office Deputy

Head Gerardo de la Paz received

the award on behalf of

Meralco in ceremonies held

June 20 at the Conrad Hotel

in Hong Kong.

CG Asia is the authoritative

journal on Corporate

Governance, providing news

and analysis on corporate

governance issues,

boardroom practices and

shareholder activism. The

recognition on Corporate

Governance excellence,

which started eight years ago,

was based on the following

criteria:

l Publicly-acclaimed

track record on corporate

governance

(which can be

in the

Meralco gains

international recognition

for Corporate Governance

Corporate Governance Deputy head Gerardo de la Paz presents the “Best in Asia in

Corporate Governance” trophy to President and CEO Manuel V. Pangilinan. From left are:

CG analysts Harold Enriquez and Lair Ambrocio; CG Officer Lilian Umipig, de la Paz, MVP,

SEVP and COO Oscar S. Reyes and FVP and Treasurer Rafael Andrada.

form of other CG-related

awards);

l Involvement in

specific publicly-known

activities (legislation,

surveys, studies, etc)

directly related to

enhancing

the standards of corporate

governance during the past 12

months;

l Implementation of

significant and specific CGrelated

reforms during the

past 12 months, including:

• Rights of shareholders

• Disclosure and transparency

• Board and Management

discipline

• Audit and Remuneration

committee

• INEDs (Independent

Non-Executive Directors)

and Investor Relations

Practices

• Corporate Governance

as a business proposition

• Corporate Social Responsibility

and Environmental

Practices

Testament to good

Corporate

Governance

POWER CLUB I NO. 2 VOLUME 1 I 2011 25


Power Up

Meralco

Customer Choice Program

from the

Linde Philippines

perspective

Meralco, through its Customer

Choice Program (CCP), continues to

provide the best pricing options for corporate

accounts to help their businesses

grow and become more productive and

cost-efficient.

Among the companies which enrolled

under CCP is Linde Philippines,

formerly Consolidated Industrial Gases,

Inc (CIGI) and Southern Industrial Gases

(Philippines), Inc. (SIG). Linde Philippines

is part of the Linde Group which is

based in Munich, Germany. Its core business

is the manufacturing and distribution

of industrial gases such as nitrogen,

oxygen and other gases which support a

broad range of industries.

By availing of CCP, Linde Philippines

has the option to operate at off-peak

hours when power rates are lower. This

allows Linde to operate its facilities,

particularly its Sta. Rosa plant, in a continuous

manner which also eases their

budget allocation for electricity expense.

Linde Philippines Managing Director

Dennis Jordan shares the effect of CCP

in their business operations:

Q: Why does your business at Linde

Philippines require a large amount of

power?

A: Power is actually the biggest input

in our production. Aside from the technology,

power is the biggest input for us

in producing our industrial gas products.

Power comprises 65% of our operating

cost.

A lot of the power consumption is

really attributed to the huge equipment

and compressors that we have at our

major production facilities.

Q: Who are the major customers of

Linde Philippines?

A: Linde Philippines serves many

industries. Majority of the customers

we serve are in the electronics industry.

We are also supplying the manufacturing

industries led by the automotive sector.

The shipbuilding sector is also a major

customer for us. Also included is the

food sector which we supply with liquid

nitrogen. Furthermore, the healthcare

industry gets its oxygen supply from us.

Q: How did you learn about CCP?

A: We learned about CCP through

Meralco’s Relationship Manager who

helped us determine the best solu-

6 POWER CLUB I NO. 2 VOLUME 1 I 2011


tion for our power needs. Meralco also

provided us with our ongoing actual

consumption so that we can manage

our power requirements better. The Relationship

Manager also gives feedback

on how we’re actually faring in terms of

maximizing the program.

Q: What CCP package does your

company use and why did you choose this

package?

A: We’re currently enrolled in the

Meralco peak and off-peak Time-Of-Use

rate. We chose this program because

it provides us the flexibility we require

with our current operational needs. We

have a clause there which allows us to

only pay for what we take.

Q: What would you say is the biggest

benefit of CCP for your company?

A: I think it’s really the flexibility on

how we operate our Sta. Rosa plant. It

is being operated in line with another

plant that we have in North Luzon and

the arrangement that we have on the

Meralco peak and off-peak Time-Of-

Use rate provides us the flexibility of

how we run the two plants. It gives us

the option to run our Sta. Rosa plant in

full during the off-peak hours when we

enjoy lower rates and minimize how we

run it during the peak time hours.

Q: How has the program influenced

your operations?

A: I think this arrangement and this

program by Meralco helped us be

clear on how we would run our plant

especially the duration for which we

would need to run it in combination

with the other production facilities that

we have in Luzon. So it’s really more of

a clear understanding of how best we

can operate all of our existing facilities

so that we can maximize the benefits

of the Time-Of-Use rates that we’re

getting from Meralco.

Q: Would you say the CCP has increased

productivity in your company?

A: In the past, we run our Sta. Rosa

plant on campaign mode which means

that it depended on the demands of

the customer. With CCP, it has allowed

us to be able to run our plant continuously

which improved its overall

efficiency and productivity. We are also

allowed to make any future reinvestments

once we have fully utilized our

Sta. Rosa plant.

Q: Being the managing director of

Linde Philippines, how has the program

impacted your decision-making?

A: As the managing director of Linde

Philippines, the CCP made it clear for

us that we’ll be able to improve our

overall efficiency and supply our customers

better. We will run it as much

as we can. It makes us competitive to

win customers in the marketplace.

Q: Would you recommend CCP to

other companies?

A: I’d be happy to recommend

the CCP to others as well. From our

perspective, it provided us the flexibility

that we require on how we would

like to run our facility. And I think this

program will also help others who have

the same situation.

Q: Do you plan to keep using this

program in the future and why?

A: We plan to be in the CCP for as

long as it benefits our operations and as

long as it helps our demand profile. We

plan to be in the CCP for as long as it

supports our operational requirements.

DENNIS JORDAN

Managing Director

POWER CLUB I NO. 2 VOLUME 1 I 2011 7


Power Projects

Meralco completed 18 electric

capital projects in the first half

of 2011, further strengthening

the electric distribution system

and improving service delivery to

customers.

Completed in the first quarter

where:

l Rehabilitation of Taguig

Substation (January 31,

2011)

l Construction of Ternate

41TN-TMC2 43WA Tie Line

(February 3, 2011)

l Unloading of Ayala-Alabang

413WR & 425WR (February

25, 2011)

l Construction of New Tabang

Feeder 35YH (February 26,

2011)

l Construction of BF-

Parañaque 424WU 34.5kV

Feeder (February 28, 2011)

l Partial Conversion of Forbes

Park 27VC Phase 1 (March 1,

2011)

l Partial Conversion of Tanza

32ZW (March 30, 2011)

In the second quarter the

following projects were

completed to meet load growth

requirements:

1. Construction of two new distribution

lines (part of Second

Regulatory Period Major

Projects)

l New Pasay CBP1A 413RF

Feeder (May 25, 2011)

l New Batangas 323 SG

Feeder (May 25, 2011)

Completed projects boosts

electric service capacity

2. Completion of five residual

projects that addressed

critically-loaded distribution

lines

l Load Balancing of Sta. Rosa

and LIIP 34.5kV Feeders

(April 5, 2011)

l Unloading of Kaybiga 424YX

(April 29, 2011)

l Unloading of Legazpi 425RA

(April 29, 2011)

l Unloading of Imus 11WK

(May 26, 2011)

l Unloading of Balintawak 55E

(June 30, 2011)

3. Conversion of two odd

voltage 6.24kV circuits to

34.5kV distribution system

l Forbes Park 17VC and 27VC

(May 5 and 7, 2011)

l Portion of Parañaque 172J

(June 4, 2011)

Balintawak 55E

4. Replacement of two power

transformers

l Tegen Transformer Bank

No. 3 (June 14, 2011)

l Novaliches Transformer Bank

no. 1 (June 20, 2011)

The expansion of the BF-

Parañaque substation – feeder 7,

at 100% completion in February

2011, helped augment the power

requirements in the BF-Prañaque

area with newly installed distribution

lines.

Meralco enjoins its corporate

customers to advise at the soonest

possible time about their future

expansion plans and increased

demand. This would give Meralco

ample preparation to line up needed

electric capital projects to meet their

needs and requirements.

Novaliches Transformer Bank

8 POWER CLUB I NO. 2 VOLUME 1 I 2011


Wholly-owned subsidiaries

of Meralco, AboitizPower and Taiwan

Cogeneration Corporation signed

a Shareholders’ Agreement on July

22 formalizing the entry of Meralco

Meralco

subsidiary Meralco PowerGen

Corporation (MPGC) into the capital

stock of RP Energy (RPE). RPE is the

project company that will develop

a 600-megawatt (MW) circulating

fluidized bed clean coal-fired power

plant at the Redondo Peninsula in Subic

Freeport Zone, Zambales. The plant

will be comprised of two 300-MW

units. The total budget for the project is

enters partnership to build

power plant in Subic

US$1.28 billion and will employ a skilled

workforce of 120 once fully operational.

The first unit is expected to come onstream

in 2014, when the proponents

expect the Luzon grid to be in need of

new baseload generation capacity. RP

Energy expects to sell part of the output

to Meralco although this will have to be

negotiated by the parties and approved

by the Energy Regulatory Commission.

Present during the

Shareholders’ Agreement: (seated,

from left) MPGC president Oscar Reyes, Energy

Secretary Jose Rene Almendras, RP Energy

president Erramon Aboitiz, TCIC director Brian

Hsu, (standing, from left) MPGC executive vice

president and general manager Aaron Domingo,

Meralco Pension Fund Trustee Pedro Roxas and TPI

president Antonio Moraza. The signing ceremony

was held at the Lighthouse Marina in Subic Bay.

POWER CLUB I NO. 2 VOLUME 1 I 2011 29


10 POWER CLUB I NO. 2 VOLUME 1 I 2011


POWER CLUB I NO. 2 VOLUME 1 I 2011 11


Power Projects

Interview with Meralco COO Oscar S. Reyes

Creating value for the company

and its stakeholders

“The fundamentals of business have

not changed. I had a chance to read the

minutes of the very first board meeting

held over a century ago of a major

global company. The business matters

discussed then are no different from

the board discussions now. They are

all about increasing sales and revenues,

managing costs, prudent investments and

capital expenditures, strategic opportunities

and risks, returns and cash dividends

to stockholders; so business is the same.

Business -- whether it’s one industry or

another, one company or another, -- is all

about creating value, spotting and seizing

opportunities, executing excellently and

efficiently, having happy customers, and

running a tight ship. You know, business

is plain common sense.”

These are nuggets of wisdom borne

out of the close to 50 year’s worth of

experience of Meralco’s Senior Executive

Vice President & Chief Operating

Officer and Chief Energy Advisor Oscar

S. Reyes.

In this article, the man we also know

as OSR shares his thoughts on what it

is like to serve in the power industry,

where Meralco’s business is headed and

how essential it is to create value in

providing service to customers.

OSR: THE COO

On Performance Outlook

OSR believes that the company

will be able to follow through on its

exceptional performance in 2010. He is

optimistic that coming off a good start,

this momentum will carry on for the

balance of this year and that a dedicated

workforce is solidly behind it. “We have

an organization that has now pulled

together as ‘One Meralco’. We’ve got

a strong team. We’ve got people who

are clear on where we’re going, what

our deliverables are for this year,” he

emphasized.

According to him, the previous year

serves as a launch pad to catapult sales

to stellar levels in the coming years. Furthermore,

customer count

is growing at a 3% rate and

by the end of this year, it

would reach close to five

million. Capitalizing on an

expanding customer base is

a foremost strategy because

driving a higher sales trajectory

depends on it. With

high expectations set, all of

these factors add up to a

promising run for 2011.

OSR makes clear that

further initiatives will be

taken in order to accelerate

energization of new customers.

The company also

aims to acquire self-generating

and directly connected

customers and bring them

back to Meralco’s distribution

system.

“We’ll have another

strong year this 2011,” he said.

On Building the Business

OSR reiterates that Meralco’s core

business is a clear priority. He calls on

every single employee to perform at

their best and ensure that they are extremely

efficient in their duties in order

to deliver reliable and affordable energy

and provide quality customer service.

He noted that the result of our service

should be to please our customers.

Alongside pleasing our customers,

OSR pointed out that energy should

be delivered at an appropriate and

acceptable cost. “We have to be very

cost-efficient,” he stated. He expressed

that everyone should have a mindset for

value. This is to ensure that we maximize

the value of our service to customers

and they enjoy affordable rates.

It is about sourcing cost-competitive

power. OSR is keen on managing power

costs since this will address a major

concern of customers and will also determine

customer choice of their retail

electricity provider when the market

opens up. He made a point that we

should also look into transmission costs

and find a way how these transmission

costs can be managed and contained,

along with our own distribution costs.

As open access approaches, OSR

would want Meralco to be in a position

where it can respond to the needs of

contestable customers. Meralco should

become their viable power provider option

in helping their business thrive.

On Power Generation

The price of power is a very sensitive

issue whether it concerns residential,

commercial or industrial customers, thus,

OSR highlighted how Meralco’s power

generation efforts can help contain or

bring down the cost of power.

“We have to ensure that our customers

see us being on their side. It is

our responsibility to ensure that they

are getting a fair and affordable price.

12 POWER CLUB I NO. 2 VOLUME 1 I 2011


That means looking at our sources of

power,” he remarked. He expects that in

terms of sources of power, the generation

portfolio being built by Meralco will

eventually have a meaningful influence

on the electric supply cost chain.

There has always been the question

of why power rates in our country, in

particular Meralco’s franchise area, are

expensive. OSR explained this by noting

that for one, the country does not

have the luxury of its own indigenous

resources of fuel. Other countries have

their own indigenous supply of coal, gas

and oil resources. We have rich geothermal

resources but most have already

been utilized. This goes for our hydro

resources as well.

“The capacity to further expand our

geothermal and hydro resources has

become challenged. We’ve already developed

most of these ,” OSR pointed

out.

Furthermore, he explained that our

country’s power supply cost is unlike

that of other countries because our

power is not subsidized by the government.

More than that, power is subject

to heavy taxation and cross-subsidies.

These elements increase the cost of

power and the company is searching for

ways to pull these costs down so that

the price for consumers will eventually

become more affordable.

As mentioned earlier, transmission

costs are sought to be remedied as well,

and part of Meralco’s power generation

aspiration is to assess whether new

generation plants can be built within its

franchise area so as to avoid transmission

costs, which consumers have to

shoulder.

On Distribution Service Expansion

Meralco’s distribution service area

is seen to have the potential to grow

in areas adjoining the existing franchise

coverage, such as Pampanga, Laguna and

Batangas. Aside from these, other cities

and provinces in the Luzon grid are also

areas where OSR hopes to share the

benefit of Meralco’s experience, expertise

and resources to ultimately benefit

the consumers.

OSR imparted the idea that this

is also a strategy for broadening and

developing a fairly strong network

management and customer retail service

resource pool. These will help in determining

whether Meralco can benefit

these areas by helping lower their systems

loss rate, improving their record on

interruption frequency rate and cumulative

interruption time, and offering faster

energization.

On Regulation

The business of Meralco is heavily

regulated. In fact, it is even more regulated

than the oil industry. His stint in

Philippine Petroleum and in Shell made

him understand and appreciate the

workings of regulation and regulatory

processes. Being thoroughly experienced

in the energy sector, OSR developed a

sense of public policy

and he understands

the sensitivity of consumer

affordability.

“You have to be sensitive

to ensure costefficiency

because

you’re safeguarding

consumer interest.

Because you’re a regulated entity, you’ve

got to ensure that you have the customers’

interest at heart.”

OSR emphasized that as a regulated

entity, the company has to be aligned

with the entire social community by

effective communication and promoting

transparency and openness.

The energy sector is one of size and

magnitude according to him. It involves

huge commitments in terms of capital

expenditures and they are for the long

term. On the one hand, we deliver a

product or a service that cannot be

seen or felt so in that sense, marketing is

a tougher challenge. On the other hand,

it is an essential product or service that

people cannot do without. Even if one

does not deem electricity as affordable,

he still has to take and use and pay for

it because it is simply part of everyday

living. With power, people do not have

much of a choice.

In the case of the oil industry, its

deregulation allowed customers wider

choice of where to gas up. For the

power industry, the situation is also becoming

similar. Having this in mind, OSR

expressed that the challenge for Meralco

employees is to always be on their

toes and embrace competition so that

they will be continuously sharp, creative

and capable of delighting customers. It is

about giving the customers a sense that

we are really their partners and that we

look after their interest.

“It is fulfilling our franchise obligation

of ensuring that our customers

have power 24 x 7 x 365 at a rate

residential customers can afford and

at a rate that allow businesses to grow

and grow profitably. So I think if we’ve

got a strong, efficient, customer-centric

Meralco and ‘One Meralco’, then we’ve

got an organization that is capable of

delivering value and benefits not only

to our shareholders and customers, but

also to our community and the country,”

he says.

POWER CLUB I NO. 2 VOLUME 1 I 2011 13


Cover Story

In 1984, a small group of executives from local and foreign

semiconductor and electronic companies banded together to help

each other in their growing industry. Today, this small group has

grown to be a major mover in Philippine business - a multi-national

organization with over 250 member companies that produced $31-

billion in exports last year.

The following articles give us a glimpse on how the Semiconductor

and Electronics Industry in the Philippine, Inc. (SEIPI) overcame

industry challenges, a difficult business environment and an

international financial crisis through hard work, networking and

camaraderie.

14 POWER CLUB I NO. 2 VOLUME 1 I 2011


Semicon and electronics industry remains upbeat

Seeking more support and

better trade policies for healthier economy

Anywhere in the world, government

plays a crucial role in a country’s trade

activities. To a large extent, it is the

political, institutional and regulatory

environment that determines a country’s

present and future economic direction.

Encouragement, motivation, sound

and progressive political and economic

programs spur a healthy business

climate, a safe trade environment

attracts foreign direct investments

(FDI), which is important to any

economy. It is believed to be the moving

power especially in the assimilation of

developing countries into the arena of

globalization and world economy.

Following is a conversation with

Dr. Dan C. Lachica, Chairman of

the Semiconductor and Electronics

Industries in the Philippines, Inc. or SEIPI.

Read on as he talks about the semicon

and electronics industry being the

country’s biggest gross domestic product

(GDP) contributor, its remarkable

performance despite major policy

concerns and obstacles, its relationship

with the government, as well as the

goals and vision of SEIPI for its members

and, more importantly, for the country’s

economic growth and development.

Q: Based on SEIPI history, the

organization was conceived in the 1980s

primarily to provide in-company trainings

to semi-conductors and electronics

companies in the Philippines. How have

the company’s objectives evolved

through the years?

A: When SEIPI started in 1984,

it had a few members. Now

we’ve got close to 200 regular

members. Training is one thing

but there are certainly more

areas of mutual interest today.

Aside from providing

opportunities to expand technical

know-how, SEIPI also would

like to provide assistance on

labor laws affecting the cost

structure, the customs laws, rules

and regulations. Of course, tax

incentives. But the biggest thing

right now, really, is power.

Q: Recognizing that power

issues are a main concern in the

semi-conductor and electronics

industry, how then does Meralco

come into play being the country’s

biggest power distributor?

A: Actually, we can’t really put

all burden on Meralco.

As you know, Meralco is

only the distribution company.

In fact for every main island you

have a Meralco, so to speak.

The problem really is the cost of

power generation…and then the

transmission. Unfortunately, we have one

of the highest power prices in Asia today.

What do we really want to do? Not

just for this year. We have a goal to reach

$50 billion of export by 2016. Today

we’re at $31.1 billion – the highest in

the history of SEIPI. The question is,

would that be enough? No. It’s miniscule

compared to the kind of FDI that other

companies in other countries, notably

China, are getting. So, one of the things

that we want to do for our members

and for the economy is to encourage

more investments. The thing about it is

we can’t do it alone. We need help from

the government.

It takes a lot of effort to attract a

company to invest in the Philippines.

Right now the electronics industry has

some 515,000 direct employees. With

a multiplier of 7 or 8, that means 3.5

million indirect employees. Filipinos

depend on the industry. I’m looking

at helping an investor who wants to

expand in the Philippines. The model

is you have them as the core company

and you will have a supply chain built

around them. Their investment alone

is $2.5 billion. I hope we can come up

with an investor-friendly environment.

Hopefully, we can get what we need to

support that growth because people

who are here want to stay here. In

fact, they want to have expansions. We

have expansions right now for several

different companies.

Q: What specific assistance or

incentives do you really want this

government and future leaderships to

extend?

A: Competitive costs. Well, definitely

low costs. That’s one thing. The others

are better infrastructure, concerns about

crime rate, peace and order, labor cost.

But I think by far the biggest thing is

power.

Part of my business, supply chain, is

slicing solar wafers for Sun Power. If we

are to grow further I need englets, they

are raw materials for making wafers.

The raw material essentially for englets

is quartz, silicon dioxide – also has the

same chemical composition as sand only

it is in quartz form. You mine it. Then

you process it to become poly silicon,

either semiconductor grade or solar

grade. I need that to sustain my wafer

supply and we are looking to start up a

business like that as a joint venture. The

thing is, I can’t do it in the Philippines

because it is power cost sensitive. What

we need is low cost and stable power.

Q: Given SEIPI’s substantial contribution

to the economy, why do you think there’s

POWER CLUB I NO. 2 VOLUME 1 I 2011 15


still lack of support? Is this industry being

overlooked?

A: I’m not saying we’re totally not

getting any support. I do understand

where the government is coming from.

The budget deficit is high and the

leakage of subsidies is high, exorbitant.

They have to balance the budget.

But just like what we were telling this

potential investor, “you may not get

extremely low power cost, but let’s

look at other ways to bring down your

operating costs.” At the end of the

day, it could be operating cost. Other

countries like China, they give free land

or subsidies, grants or outright cash or

soft loans at very low interest. Maybe

working together with public-private

partnerships we can come up with

creative ways to make the Philippines

competitive. I think there’s lot of positive

things about the current government.

Despite the problems, I still have high

hopes for this government.

Q: How do you think Meralco can help

ease the obstacles given its vital role in the

power supply chain?

A: Again, I guess the question here

is what can Meralco do to help reduce

the cost of power? But you’re starting

with power generation, you’re getting

into that. Maybe anecdotal, we have a

100- kilowatt solar roof installation in

our factory. I think that’s the wave of

the future. You know, not just residential

users of 1 kilowatt or 2 kilowatts, but

you have commercial malls or home

developments on the roof. You connect

it to the distribution utility, in this case

Meralco. We’re already pitching that.

Power cost is important in reducing

the cost of manufacturing. You will not

get low manufacturing cost by just

waiting. You will get it with volume. That’s

economics. You have to generate the

volume and the way to do that is to

encourage investment by a reasonable

feed-in tariff. And again, I don’t think you

can just do it by yourself. You talk about

royalties on natural gas, maybe help

in educating the government and the

masses.

One thing we can do, although I

don’t think we’ll be able to do that

today, is make SEIPI an aggregator. But as

I understand it, correct me if I’m wrong,

to be able to be an aggregator, your

meter should be in a contiguous area.

And you know SEIPI is all over the place

– in Baguio, Cebu…

Q: So how do we exactly make it

happen?

A: For me, it’s asking ourselves

“how can we do this?” Kasi, you will

tell me it has to be contiguous. Then,

I’ll tell you the Philippine islands are

a contiguous area. Let’s think out of

the box. Let’s come up with solutions

because contiguous is subjective. Today,

the virtuality of dimension is something

not to be ignored. Ang kailangan lang

maintindihan natin, what is our goal?

What are we trying to accomplish? If we

want the Philippines to be competitive, if

we want to promote renewable energy,

what do we need to do? Because by

2050, solar will be second to natural gas

as dominant source of power. By 2100,

solar will be the dominant source. For

SEIPI, we do what’s in the best interest

of the membership. We have smaller

members so we try to promote SMEs.

Q: SEIPI being the secretariat and

at the core of the semi-conductor and

electronics industry, how would you rate

the organization’s performance?

A: I would say that SEIPI has been

successful so far. If you look at models

of how commercial, industrial or

professional organizations should be ran,

SEIPI, I think, would be a good model.

That’s despite the obstacles. We’re

developing our technology road map

to include solar, automotive electronics,

consumer electronics, and data storage.

I think we’ve identified around five

elements that we would like to develop.

Q: Taking into consideration the already

huge contributions of the semicon and

electronics industry to the economy, are

there other goals left to be achieved?

A: I hope we can realize our goal

of $50 billion export mark by 2016. I

hope we can promote our technology

road map. I hope we can continue

to be an integral part in the gross

domestic product (GDP) growth of the

Philippines, contribute to the economy.

I hope we can attract foreign direct

investments. With regard to labor, we

have made the conscious decision not

to automate because our labor is more

productive.

What we’re trying to do is help get

foreign direct investment. By the way, the

$31.1 billion for export is about, I think,

61% of the country’s total export. The

total is something like $51 billion. You

take out the electronics industry and

you’re down to 20.

SEIPI welcomes new Chairman

As of presstime, the Semiconductor and Electronics

Industries in the Philippines, Inc. (SEIPI) announced a new

chairman to its board of directors starting August 2011.

He is Bing Viera, President and Managing Director of

Texas Instruments in the Philippines. He succeeds former

SEIPI chairman Dan Lachica, President and Chief Executive

Officer of First Phillec Solar Corporation.

As principal head of Texas Instruments’ operations in the

country, Viera manages TI’s assembly and test facility in Baguio

City, as well as the assembly and test, bump and probe facility

BING VIERA in Clark Field, Pampanga.

Viera began his career at TI as a product engineer in 1979

after obtaining a degree bachelor of science in electronics and communications from

the University of Sto. Tomas. He moved up the organization ladder soon after by taking

on supervisory and managerial posts. He became president and managing director of

TI’s Philippine operations in 1996.

An active member of the community, Viera is a recipient of numerous awards and

citations including:

•Centennial Award, Total Thomasian Award for Science and Technology, and Hall of

Fame Award (Field of Engineering) from the University of Santo Tomas

•Medal of Honor Award from the Angeles University Foundation

•Partner of the Industry Award from SEIPI

•Doctor of Humanities from the University of Baguio

A native of Ajuy, Iloilo, Bing and his wife have four children and reside in Baguio City.

Texas Instruments, based in Dallas, Texas, is the world’s largest supplier of Mixed

Signal and Analog Integrated Circuit Products.

16 POWER CLUB I NO. 2 VOLUME 1 I 2011


“There is strength in numbers.”

This adage, quite succinctly, captures

how the country’s leading and largest

organization of semiconductor firms, the

Semiconductor and Electronics Industry

in the Philippines, Inc. (SEIPI) was able to

achieve the success it has today.

For what started out as small group

of executives from local and foreign

semiconductor and electronic companies

in 1984, SEIPI has now grown to be

one of the country’s most profitable and

influential industry movers. The organization

boasts to have over 250 member

companies, consisting of local and

foreign firms, all affiliated and organized

under its wings.

According to SEIPI President Ernie

Santiago, the number of affiliations and

memberships do not completely capture

the strength that the organization

currently holds. It lies in the impact that

the SEIPI contributes to the Philippine

industry, economy and society.

Under the SEIPI, over half a million

Filipinos are directly employed under its

member corporations. Santiago pointed

out that for every direct job, seven indirect

jobs are created. This implies that

about four million Filipinos are dependent

on the semicon and electronics

industry.

The organization’s total exports

alone speak for SEIPI’s impact on the

country’s economy as it accounts for

almost 62 percent of the Philippines’

total exports. A study by University of

Asia and the Pacific Economics professor

Dr. Bernardo M. Villegas revealed

that the industry held about 30 percent

of the country’s gross domestic product

(GDP).

From June 1-3, 2011, SEIPI hosted

the Philippine Semiconductor and

Electronics Convention and Exhibition

(PSECE 2011) at the SMX Convention

Center, at the SM Mall of Asia in Pasay

City. During the proceedings, Meralco

Power Club was able to sit down with

the SEIPI President. In the following interview,

he discussed how SEIPI was able

to grow and prosper, in its members and

in the industry, through the years.

Q: How would you describe SEIPI

today? How does the organization work

and operate?

Santiago: SEIPI is the leading and the

largest organization of foreign and local

semi-conductor firms. Basically SEIPI

SEIPI: Working towards GAINS

Hard work, networking and camaraderie help drive

booming semiconductor industry

works towards GAINS. (Global competitiveness,

Advocacy, Info, Networking

and Services). We work on global

competitiveness, how these companies

should be more globally competitive.

For advocacy, we work on public policy

and advocacy leadership. “I” is information.

SEIPI is the one-stop center for all

information about this industry. And “N”

is networking. We create avenues for

competitors, partners to work with one

another through some activities such as

this one. And “S” is services. We could

provide consultancy services to our

members.

It’s an organization which brings

competitors together, that’s one value.

Magkakalaban yan eh. They all work

as one (at SEIPI) at masaya sila. We

bring individuals and other stakeholders

together, even the government, media,

the public and the academe work with

us – that’s the value of SEIPI.

We at SEIPI, bring these individuals

and companies together, we bring

competing businesses together and the

way I look at it, some people are saying

Cover Story

SEIPI is contagious. Ibig sabihin nito, nakakahawa.

Kasi magagaling ang kasama

mo, gagaling ka rin dapat – as simple as

that. It’s like if Texas Instruments, Intel or

Philips are good, your company would

have to follow suit. It’s like when we

were in school, when you hang out with

the cream of the crop, most likely, you

would also excel. Nakaka-influence. Nakakahawa

siya, contagious.

That’s how some

members are saying it

and it’s not only in the

organization. There are

some Germans and

other foreigners who

are also saying it. It’s a

family.

Q: So how did this

family really start and

how does it work as a

family?

Santiago: It was

established in 1984. It

started out with just

two people, I think.

Now we have fifteen

individuals. We’re just

fifteen but we have

over 1, 500 volunteers

in the organization

working for SEIPI.

These 1, 500 volunteers

are coming from

eight networking committees.

All of these

people are managers.

They all work for SEIPI

and we are supervising

all of them.

So, if there are

issues on the floor, or even legislations,

there are members that we tap and ask

for help. That’s the greatest value we

have – we work together. Let’s say that

there is a call for a wage hike, SEIPI talks

to all HR directors and right away we

have the answer. Kaya mukha kaming

strong. We have a wide network – we

have1,500 people who could help us in

any field, functional areas and in manufacturing.

These are people who could

share some of their best practices in

their own respective fields

I think that other organizations do

not have this kind of network. Ang nagkikita

lang doon ay ang mga presidente,

nagkakampi-kampi sila. But in SEIPI, you

have these working people. Ito ang core

POWER CLUB I NO. 2 VOLUME 1 I 2011 17


SEIPI...

namin, the core values of SEIPI are the

networks, meaning the managers working

for the betterment of the industry.

All of them are volunteers. SEIPI is not a

country club, a bowling club or is it a village

association club. It’s a business club.

You only talk of business.

Q: What are the main thrusts of SEIPI

for 2011 to 2012? How are you planning

to achieve this?

Santiago: Basically, our thrust, not only

for 2012, is to achieve our goal, We’re

a $31-billion dollar export industry. We

plan to move it to $50 billion by 2016.

That is almost double. Double up ang

goal namin.

So to do this, we ask ourselves, “how

can you double up your export?” How

can you increase your sales? We realized

that by, firstly, you have to increase your

capacity or there has to be an increase

in investment. We need to improve

investments here in the country. There

has to be more investors that should

come in.

Second, we need to level up our

technology. If you’re in a scale of 8, we

should be in a scale of 9 next time

around. Also, we’re trying to develop a

technology roadmap that will bring us to

the next level.

Third, we need to bring down the

cost of power, the cost of business in

particular. One major issue here is cost

of power. Power here in the Philippines

is too high, we all know that. Not

because of Meralco. The generation cost

is too high. Kaya minsan nagiging difficult

to bring in investors.

And lastly, we need to continue what

is being given to these companies. Kung

minsan kasi nagbabago ang ating rules

dito. Some investors need incentives.

But we believe that we will get this and

achieve our $50 billion. Let’s do something

on this area to achieve this.

Q: Sir, we’ve been told that you are

the third most important contributor to

the GDP of the Philippines. But then, due

to recent events in Japan and the Middle

East, there have been setbacks. How do

you manage this?

Santiago: Japan accounts for 20

percent of the Philippines’ total electronics

business. Globally, Japan is also 20

percent. Even in SEIPI’s membership, 20

percent of our members are Japanese.

When the earthquake and tsunami hit

northeast Japan, most companies were

not damaged, in general, for the reason

that most of the manufacturing sites in

Japan are based in the south.

But we did experience some problems,

like we had difficulty getting the

raw materials coming from Japan. Then, it

was also difficult to get the components

out of Japan. Third, it was also difficult to

get people back to work. And lastly, the

interruption of power caused delays of

production.

The short-term problem we saw

a disruption in the supply chain. We

met with all the vendors, the Vendor

Management Inventor (VMI) companies.

These are companies who provide us

the supplies. We met with them and we

were given assurance that they would

be able to provide the supplies. Reports

say that the Japanese electronic supplies

chain will be restored by this time. Very

quick, ang galing ng Japan. So our projection

is that we’ll still grow by 8 to 12

percent.

Q: Is this a conservative projection?

Santiago: No. This is the present

industry guidance. Maybe a low of 8

percent. We’ve set a target of maintaining

this level given the events in

the Middle East. Business will still be

good.

Last year, mataas kami at 41 percent

because we came from bottom

the global financial crisis. Last year

was a year of rebound and now, it’s

just a normal year.

Q: What is your outlook of the

semi-conductor electronics industry?

Santiago: By 2016, $50 billion.

We plan to do this because we have

JET (Jobs, Exports and Technology).

We provide jobs, deliver exports

and transfer technology. With this,

we can.

Working out partnerships

How Meralco Corporate

Partners provide support to SEIPI

Meralco is our partner.” This is

how SEIPI President Ernie Santiago

described his organization’s relationship

with the country’s largest power

distributor.

Because SEIPI is one of the biggest

consumers of power in the Philippines,

Santiago said Meralco closely

works with them and prioritizes their

needs. He mentioned that there were

even cases when the organization tried

to negotiate for preferred power rates,

and they were able to achieve special

rates for the Philippine Economic Zone

Authority (PEZA).

“We’re paying lower than what

other companies are paying for the

reason that we are big volume users.

Wholesale kami. We’re happy with the

support we’re getting from Meralco,”

Santiago said.

For its part, Meralco is helping SEIPI

to achieve more competitive power

rates for its affiliates. Santiago related

that Meralco serves as a credible

source on power issues for the organization

and its members. He stressed

that Meralco helps strategize means for

SEIPI member- companies to get lower

and more competitive power costs.

Meralco interacts with SEIPI through

its Meralco Corporate Partners group,

an organization that directly caters to

the needs of its customers. This group

was recently formed and Santiago expressed

his appreciation for Meralco’s

move to further strengthen its relationship

with its large-scale customers,

specifically providing support for SEIPI

and its members.

“Before our relationship with Meralco

was only on a company level but

now, it is also in the industry level. Relationship

Managers (RMs) know what’s

happening with the various companies

in the industry,” Santiago said.

He also emphasized that with Meralco

RMs, interaction with SEIPI were

more regular and service was customized

to fit each SEIPI member’s needs.

If there were problems, the RMs were

quick to help them.

When asked as to SEIPI’s stand if

ever open access (for other distribution

companies) in the power industry

will come into fruition, Santiago replied,

“Lahat ng generation companies would

like to have a contract so a lot are in

play and Meralco is just one of the

players. Our goal is to leverage our volume.

That’s our value. We’ll just group

together and leverage with Meralco.

Meralco knows our track record. As a

partner, alam ninyo what we plan to do.

For us, really, one is to bring down the

cost, the other is legislation. The selling

point of Meralco is its expertise.”

18 POWER CLUB I NO. 2 VOLUME 1 I 2011


Meralco enhances IRRI facilities

to boost global rice production

A sustainable supply of rice to feed a

growing population.

Such is the vision of International Rice

Research Institute (IRRI) Director General Dr.

Robert Zeigler for the Philippines and the rest

of the world. In achieving this endeavor, he

articulates IRRI’s efforts in increasing rice supply,

one of which is creating modern varieties that

yield more output given limited availability of

rice fields. This is in response to a rice demand

expected to grow dramatically in the years

ahead.

Furthermore, Dr. Zeigler showed that data

gathered by IRRI proves that the Philippines

leads most of Asia in rice yield growth. Given

this observation, what IRRI hopes to achieve

is to capitalize on the country’s rice producing

capabilities and significantly boost production.

In line with IRRI’s initiatives, President and

CEO Manuel V. Pangilinan recently paid a

visit to the IRRI facility in Los Baños, Laguna.

He said, “Meralco expresses its assurance

to IRRI that it will support its requirements

for reliable, efficient and adequate electricity.

of environmental sustainability through

collaborative research, partnerships, and the

strengthening of national agricultural research

and extension systems.

IRRI Procurement and Materials

Management Services Senior Manager

Hiram Gomez, Jr., said that whatever savings

the institute will be able to generate from

connecting to the Meralco grid will be

ploughed back to research. IRRI holds the

largest number of rice variety in the world,

with about 110,000 in stock.

Community

there are many things that it can work out

together with IRRI to achieve their common

aspirations.

The Meralco organization, led by MVP,

would like to see a sustained improvement

in our country’s agriculture. Though the

Philippines has gone a long way towards

boosting rice production, there continues

to be a host of problems that confronts the

sector, such as extreme weather conditions

and pest infestation, among others. Together

with IRRI, it is Meralco’s hope that day will

come when Philippine agriculture will be able

to hurdle these challenges and feed not only

our growing population but that of other

nations as well.

Meralco executives get a background on rice farming shared

by IRRI officials.

We are committed to provide power at

cost-competitive rates. This is the reason

for Meralco’s entry into power generation

– to help influence and manage the cost of

electricity, and ensure reliability and adequacy

of supply. We are glad that IRRI has chosen to

partner with us. We know the importance of

IRRI’s role in national development – a cause

that Meralco advocates as well.”

Senior Vice President for Customer Retail

Services & Corporate Communications

Alfredo Panlilio added, “After 50 years, we

are glad that IRRI is now our partner in

national development. Moving forward, we

hope that Meralco will continue to be IRRI’s

service provider of choice.”

IRRI counts among its missions

the reduction of poverty and hunger,

improvement of the health of rice

farmers and consumers, and assurance

On the objective of helping develop

Philippine agriculture, MVP can also bring in

the Philippine Business for Social Progress

(PBSP), with him chairing the group. PBSP

is a group of businesses that implements

development projects on behalf of the

private sector. It likewise promotes the

practice of corporate citizenship as a

model for poverty reduction. In this regard,

President and CEO Manuel V. Pangilinan and IRRI Director

General Dr. Robert Zeigler make the agreement official.

POWER CLUB I NO. 2 VOLUME 1 I 2011 19

Meralco executives take a tour of IRRI’s rice gene bank.


MVP with Meralco Manila Sector head Jose Reyes, Jr., Moulding Future Innovators (MFI) Foundation EVP

Antonio Kosca, MFI Foundation President Alejandro Escaño, OMF President and Meralco Chief CSR Officer

Jeffrey Tarayao, Philippine Red Cross governor Elmer Espiritu, Meralco Central Distribution Services-

Logistics head Adelfo Sebastian and Meralco Substation head Manuel Roxy Juan

It was a night of celebration, a spectacle of music and light at the

Meralco Theatre on July 15 as the country’s prime energy solutions

company, Meralco, launched its new corporate foundation, the One

Meralco Foundation. The grand launching, an affirmation of Meralco’s

renewed commitment to innovation and the sustainability of its

social investments, drew substantial support from the private and

government sectors and from members of the local corporate social

responsibility (CSR) community as well.

One Meralco Foundation is a result of Meralco’s conscious effort

to align its CSR initiatives with the company’s core business of power

distribution. For the past year, Meralco has undertaken a comprehensive

review of its processes and organization leading to the

restructuring of the company. In a parallel effort, a thorough review

of the company’s CSR activities was also made imperative, resulting

in the creation of just one corporate foundation, the One Meralco

Foundation.

As the name implies, the foundation aims to integrate all the CSR

and sustainability initiatives of the Meralco Group under one roof,

unifying all social commitments that were previously done separately

and housed in a number of foundations. It provides Meralco with a

single vehicle for program implementation, enabling a more organized

and better execution of significant, timely and sustainable CSR

programs. With One Meralco Foundation’s framework aligned with

the company’s strategic direction, social initiatives now become even

more supportive of Meralco’s commitments to its 3Cs – customers,

OMF Vice Chairman

and Meralco

COO Oscar

Reyes and Meralco

Customer

Retail Services &

Corporate Communications

head

Alfredo Panlilio

SM Foundation Exec. Director Linda Atayde

and OMF and Meralco Chief CSR Officer

Jeffrey Tarayao.

community and country.

The July 15 launch was a tangible expression of Meralco’s

commitment to work with the communities where

its businesses operate. It became an apt venue to showcase

One Meralco Foundation’s vision and course of action for

the long term.

The launch set into a moving musical production the

foundation’s main focus areas, namely; Rural/Missionary

Electrification, Grassroots Partnership, Sports and Youth Advocacy

and Disaster Relief and Emergency Preparedness. Through the power

of music and beneficiaries’ testimonies, these CSR commitments were

presented to the public, allowing the foundation to take everyone

through an inspiring journey of compassion and hope. Everyone was

brought together that night by a common and unified vision: a better

life for Filipinos.

To carry out and sustain the social initiatives of One Meralco

Foundation, Meralco is rallying its own employees, business and government

partners for much needed support. One Meralco Foundation

Chairman and Meralco President and CEO Manuel V. Pangilinan

acknowledged during the launch that helping marginalized Filipinos

achieve a better life and contributing to nation building are not easy

tasks for any corporate foundation to accomplish alone. He took the

event as an opportunity to reach out to the CSR community, to the

NGOs, for cooperation to make One Meralco Foundation’s activities

worthwhile.

“Tonight we reach out in a

way that speaks of our desire to

be part of the family, part of your

community. We know we cannot

do it alone. The problems of

poverty are so immense, so complex,

so formidable, that efforts

to address them become more

effective only if we work together,”

Pangilinan concluded.

MVP with

N a t i o n a l

Bookstore

Founder and

NB Foundation

general

m a n a g e r

Socorro Ramos

MVP with Bangon

Kababaihan, Bagong

Cainta Chairwoman

Veron Ilagan, Cainta

Mayor Mon Ilagan

and Makati Medical

Foundation’s Karen

Torres.

Grand affirmation: One Meralco Foundation launched

One Meralco Foundation (OMF) board of trustees and officers, from left: OMF treasurer and Meralco AVP Anna Marie Lerma, trustee and Meralco Networks head Ricardo

Buencamino, trustee and Meralco CFO Betty Siy-Yap, trustee and Caritas Manila Exec. Director Fr. Anton Pascual, trustee and Meralco HR & Corporate Services head

Ramon Segismundo, 20 POWER OMF CLUB Vice I Chairman NO. 1 VOLUME and Meralco 1 I 2011COO Oscar Reyes, OMF Chairman and Meralco President & CEO Manuel Pangilinan, OMF President and Meralco

Chief CSR officer Jeffrey Tarayao, trustee and Meralco Customer Retail Services & Corporate Communications head Alfredo Panlilio, trustee and Gawad Kalinga Devp.

Foundation, Inc. Exec Director Jose Luis Oquiñena, OMF corporate secretary and Meralco Corporate Law head Atty. Zarah Villanueva-Castro, and OMF Exec. Director and

Meralco CSR Office head Mario Christopher Yap.


Meralco launches

Power-Up forum series

for corporate customers

As a corporate partner, Meralco goes full

throttle in its info campaign to brief customers

whose average energy demand is at least

1 megawatt, regarding the benefits of Open

Access and Retail Competition (OARC)

which begins on December 26, 2011 as

declared by the Energy Regulatory Commission

(ERC).

Aside from explaining the rationale behind

OARC and providing guidance on how

to properly prepare for this, other customer

relevant topics such as power quality, service

improvement initiatives and new value-added

service were also discussed.

The first wave of fora was attended by

corporate customers from the Textile, Hotels,

Banking, Education, Automotive, Semiconductors,

Electronics, Malls and Cement industries

among others, where they were briefed on

major developments in the electric industry.

The series of fora was held at the Meralco

Center in Pasig City and at selected venues

in close proximity to customer locations.

PREPARING FOR OARC

At the fora series, Meralco Relationship

Managers presented the impending changes

in the structure of the electric industry

brought about by OARC and its possible

effects on corporate customers. The topic on

OARC focused on customer preparedness,

as well as tips on how to properly contract a

Retail Electricity Supplier (RES) for the supply

of energy.

For his part, Meralco Vice President and

Corporate Business Group head Victor S.

Genuino remarked, “This fora series presents

a re-energized Meralco that is committed

to ensure that the transition to OARC is as

smooth as possible for our customer.”

Meralco Senior Vice President and Customer

Retail Services head Alfredo Panlilio

welcomes a guest from Procter & Gamble

Philippines.

He recognized that though the OARC

environment seems daunting, he assured

customers that this series is just one of the

many initiatives Meralco is doing to ensure

customers are fully prepared and empowered

to make intelligent decisions. “We are

pro-actively engaging our corporate customers

to specifically address their individual

concerns on OARC,” he added.

THE FUTURE WITH MERALCO

The Smart Grid technology, one of Meralco’s

flagship projects, was also showcased.

This technology seeks to revolutionize the

electric distribution system as it offers a

more sophisticated

electricity supply network that effectively

manages the power supply for consumers,

providing a more efficient electric service.

Using Smart Grid, Meralco can offer

several innovations which include: home/

automated area network connectivity, where

centralized control

of appliances

or equipment are

enabled, and smart

meters and prepaid

electricity where

consumers can

better manage their

electricity consumption

and operations

through real-time

information. With

Smart Grid technology

running the electricity supply network,

power costs are deemed to go down, providing

consumers efficiencies both at home

and the workplace.

MERALCO’S COMMITMENT

TO CUSTOM-

ERS

Alfredo S.

Panlilio, Meralco

Senior Vice

President and

Customer Retail

Services and

Corporate Communications

head,

Power Events

From left: Samsung Electro-Mechanics

Philippines Incorporated Facilities

Director Hong Hyun Kim, Relationship

Manager Marvin Jovero, Senior

Vice President and Customer Retail

Services head Alfredo Panlilio.

personally expressed Meralco’s commitment

in fulfilling customer expectations by crafting

innovative ways to enhance service quality

and reliability. “We are currently developing a

more intelligent power system,” he said. This

state-of-the-art power system, he continued,

can augment electricity supply and in turn,

“Rest assured, Meralco will continue to

provide our customers best value energy solutions

and trail-blazing products and services,

enabling your business to grow and achieve

optimal efficiency in this changing energy environment.

We envision this partnership to go

beyond the present as we join hands with the

entire nation in becoming a steadfast advocate

of nation-building.”

help reduce power costs. The entry into

power generation, he added, is Meralco’s initiative

to control power cost for the benefit

of customers.

“Rest assured, Meralco will continue to

provide our customers best value energy

solutions and trail-blazing products and

services, enabling your business to grow and

achieve optimal efficiency in this changing

energy environment. We envision this partnership

to go beyond the present as we join

hands with the entire nation in becoming a

steadfast advocate of nation-building,” Panlilio

emphasized.

Sa Meralco, Ang Liwanag ng Bukas!

Meralco Vice President and Head of Corporate Business

Group Victor Genuino greets representatives from Isuzu

Philippines Corporation.

POWER CLUB I NO. 2 VOLUME 1 I 2011 21


Sharing innovative power solutions

in Green Retail Agenda conference

Meralco Senior Vice President and Customer Retail Services and Corporate

Communication head Alfredo S. Panlilio, SM Supermalls President Annie Garcia,

Meralco VP and head of Corporate Business Group Victor Genuino, Meralco Relationship

Manager Rodel de la Torre.

Meralco showcased recently key

technological innovations that the company

supports, particularly the promotion

of the electric vehicles (e-vehicle)

and induction heating technology, at the

SM Supermalls’ Green Retail Agenda

conference held at the SM Convention

Center on June 22. Part of Meralco’s

environmental conservation and sustainability

advocacy, the event likewise

affirmed that it was one with the SM

group in highlighting the social, economic

and environmental benefits of green retail

– the business advocacy movement

that tries to drive consumer preferences

toward products and services that have

greater sustainable and environmental

impact. The conference carried the

From left: SM Prime Holdings Inc., President Hans Sy,

Meralco VP and head of Corporate Business Group

Victor Genuino Meralco VP and Marketing and Customer

Solutions head Jose Antonio Valdez.

theme, “Empowerment by Sustainability.”

Meralco Energy Inc., (MEI) Managing

Director Victor H. Baylosis imparted the

green benefits of e-vehicles as an alternative

means of public transportation.

On the other hand, Meralco SAVP

and Customer Solutions head Francisco

D. Collantes presented why induction

cookers are

more efficient,

cheaper and

safer than

conventional gas

stoves.

22 POWER CLUB I NO. 2 VOLUME 1 I 2011


Meralco reinforces partnership

with the Semiconductor & Electronics Industry

Meralco has joined the Semiconductor

and Electronics Industries of the

Philippines (SEIPI) as an annual business

partner, further strengthening its

partnership with the semiconductor and

electronics industry. The partnership also

signifies Meralco’s effort to help encourage

export-driven business and foreign

investments in the country.

To mark this new partnership, Meralco

participated in the organization’s

105th General Membership Meeting

(GMM), a quarterly member’s meeting

of all major players in the semiconductor

and electronics sector, held on July 22-

23 at Shangri-la Hotel Mactan, Cebu.

At the GMM, Meralco Corporate

Partners sent six delegates to the twoday

event led by Mr. Victor S. Genuino,

Vice President and Head of Corporate

Business Group, to not only make Meralco’s

presence felt as the newest SEIPI

annual business partner, but also to participate

in open discussions with SEIPI

members who are also top industrial

customers of the distribution utility.

The group actively engaged SEIPI

members for a better understanding of

their proposed expansion projects and

business outlook to be able to prepare

for their energy requirements, at the

same time enabling them to meet market

demands.

As an annual business partner,

Meralco is fully dedicated to continually

support the upcoming events of

SEIPI,specifically the General Membership

Meetings, and the annual Philippine

Semiconductors and Electronics

Convention and Exhibition (PSECE).

The 105th GMM was a venue to

discuss a number of issues concerning

the industry which SEIPI President, Mr.

Ernie Santiago, initially addressed during

his presentation on the January to May

2011 performance of the Philippine

electronics industry.

This was followed by SEIPI Chairman

(outgoing) Mr. Dan Lachica’s global

electronics industry business outlook for

the rest of the year which featured the

overall global economic outlook coupled

with key forecasts for semiconductors,

electronics manufacturing services, photovoltaic,

polysilicon worldwide markets.

For his part, Mr. Bill Luz, the co-chair

of the National Competitiveness Council

(NCC) discussed the potential strategies

in the fields of policy and project reform,

project implementations, institutional

building, performance monitoring and

goal setting with the overall Philippine

From left: PLDT VP and of Head Corporate Business

Group Jovy Hernandez, Meralco VP and Head of Corporate

Business Group Victor Genuino, Ionics EMS VP

of Corporate Affairs Judy Qua, SEIPI President Ernie

Santiago, Philippine Economic Zone Authority Director

General Lilia de Lima, National Competitiveness Council

Co-Chair Bill Luz, PLDT VP and Head of Corporate

Relationships Management Renato Castaneda, Pricon

Micro Chairman Freddie Pacho, Fastech Synergy Chairman

Bong Belen, REMEC Broadband President Domingo

Bonifacio and Laguna Electronics Inc. President

Kazuma Hanzawa

Pricon Micro Chairman Freddie Pacho and Meralco VP

and Head of Corporate Business Group Victor Genuino

competitiveness outlook in mind.

The latter part of the afternoon

session featured an interactive discussion

with SEIPI members, Philippine Economic

Zone Authority (PEZA) representatives

and Department of Trade and

Industry (DTI) representatives that addressed

a number of issues ranging from

potential customer expansion plans, vital

business outlook for the second half

of the year and defining key industry

products and components that have the

potential for growth.

POWER CLUB I NO. 2 VOLUME 1 I 2011 23

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