Q1 energy sales up by just 1.2%
Power distributor Manila Electric Co. (Meralco) recorded slightly better energy sales in the first quarter, buoyed by the residential and commercial sectors, but even stronger figures are expected beginning April.
Meralco senior vice president and chief revenue officer Ferdinand Geluz said the consolidated power sales in the first three months had inched up by 1.5 percent to 12,493 gigawatt hours (GWh) from 12,307 GWh in the same period last year.
Energy sales are also seen as one gauge of economic activity.
Residential sales saw a 3-percent increase to 4,257 GWh, driven by the “sustained momentum from energization efforts and observed high heat index in the franchise area.”
Sales from the commercial industry, meanwhile, only improved by 1 percent to 4,744 GWh from 4,679 GWh, thanks to the “robust demand” from consumer-facing establishments amid a sluggish real estate market.
Industrial sales, on the other hand, ended flat at 3,455 GWh due to the decline in consumption by the food and beverage as well as steel sectors.
“For the second quarter, we are optimistic that energy sales will pick up, continuing to the second half, to reach our target of 4.5 percent by year-end,” he said in a statement.
The main factors contributing to such optimism are the expected higher consumer spending during the midterm elections, lower inflation and interest rates and the eventual occupancy rebound in real estate.
Meralco’s franchise area covers Metro Manila, Bulacan, Cavite, Rizal and select areas in Pampanga, Laguna, Batangas and Quezon. The power giant has more than 8 million customers.
On Tuesday, its chair and chief executive officer, Manuel V. Pangilinan, said the group would continue investing in energy projects after President Marcos extended its franchise for another 25 years.
“The fresh franchise enables us to implement long-term energy infrastructure projects that will further improve the delivery of electricity to homes, businesses, and industries that fuel the country’s development,” Pangilinan said.
Last year, its consolidated core net income surged by 22 percent to P45.1 billion. Meralco’s distribution business contributed the biggest chunk of the core profit, reaching P28.1 billion.
