Meralco slashes energy sales forecast for 2025

Manila Electric Co. (Meralco) scaled down its energy sales volume forecast for 2025 amid market challenges coupled with cooler weather that further dampened demand.

Ferdinand Geluz, senior vice president and chief revenue officer at Meralco, said the group now expects sales to grow by one percent to 2 percent. This was earlier forecast at 4 percent to 4.5 percent.

“The downgrade in our energy sales forecast stems mainly from industry, weather, and macroeconomic factors,” Geluz said. He noted higher vacancies in commercial real estate and the exit of the Philippine offshore gaming operators.

“Macroeconomic pressures are intensifying, with downgraded GDP (gross domestic product) forecasts, weak tourism and global uncertainties like Middle East tensions and US tariff risks all weighing on overall demand,” he added.

The official said the distribution utility’s energy sales recorded a slight growth in the first quarter, but contracted during most of the second quarter—particularly May and June.

Ending the first half, energy sales only went up by less than one percent. This was pegged at 27,091 gigawatt hours (GWh), coming from 26,954 GWh in the same period last year.

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The commercial segment accounted for 37 percent of first-half volume or 10,102 GWh. This was buoyed by expansion in malls, supermarkets and cafes and quick-service restaurants.

The residential market, meanwhile, contributed 36 percent of the total sales or 9,779 GWh. It finished the first six months of the year with 8.1 million customers.

Meralco chair Manuel V. Pangilinan also said that the group’s distribution business would grow slower in 2025.