POWER distributor Manila Electric Co. (Meralco) saw its energy sales volume increase by 1.5% in the first quarter (Q1), driven by the uptick in residential and commercial sectors.
Energy sales volume increased to 12,493 gigawatt-hours (GWh) from 12,307 GWh in the same quarter last year, Ferdinand O. Geluz, senior vice-president and chief revenue officer of Meralco, said in a Viber message last week.
For the first three months, residential sales volume rose by 3% to 4,257 GWh from 4,144 GWh, driven by “sustained momentum from energization efforts and observed high heat index in the franchise area.”
“Commercial sales posted a 1% increase to 4,744 GWh in Q1, up from 4,679 GWh in Q1 2024, buoyed by robust demand from consumer-facing establishments amid a slowdown in real estate,” Mr. Geluz said.
On the other hand, energy sales volume in the industrial sector slightly climbed by 0.2% to 3,455 GWh from 3,448 GWh as gains from non-metallic, semiconductor, and plastics sectors were muted by downturn in food and beverage and steel sectors.
Mr. Geluz said that Meralco is optimistic that energy sales will pick up in the second quarter, all the way to reach its full-year target of 4.5%.
This is on the back of expected boost from “higher consumer spending during midterm elections, better economy from lower inflation and interest rates,” and “anticipated recovery in occupancy in real estate,” he added.
In 2024, Meralco’s energy sales volume rose by 6.4% to 54,325 GWh from 51,044 GWh in the previous year, driven by warmer temperatures due to El Niño and sustained customer energizations.
This surpassed the company’s target of 53,473 GWh for the year.
The power distributor’s distribution utility business accounted for 62% or P28.1 billion of the company’s total core net income last year, which increased by 22% to P45.1 billion.
Meanwhile, Meralco said in a statement on Sunday that it had upgraded a power transformer at the Tayabas Delivery Point Substation to support the growing demand in Quezon province and neighboring towns in Laguna.
The power transformer’s capacity increased to 300 megavolt-amperes (MVA) from 100 MVA previously, MVA, providing N-1 contingency and accommodating high load growth, while improving overall resilience of Meralco’s distribution system.
President Ferdinand R. Marcos, Jr. on April 11 signed into law the measure extending Meralco’s franchise for another 25 years, Presidential Communications Office Undersecretary Clarissa A. Castro earlier confirmed.
Meralco’s current franchise is set to expire in 2028. With the extension, the company will have the authority to distribute power to Metro Manila, Bulacan, Cavite, Rizal and select areas in Batangas, Laguna, Quezon and Pampanga until 2053.
“The renewal reflects a shared effort to ensure that Meralco continues to meet the evolving needs of consumers through innovation, operational excellence, and dependable service,” Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
