By Sheldeen Joy Talavera, Reporter
MANILA Electric Co. (Meralco) posted a 3.8% increase in its consolidated core net income (CCNI) for the primary half, driven by stronger contributions from its power generation and retail electricity supply businesses.
At a briefing on Wednesday, Meralco Chief Finance Officer Betty C. Siy-Yap said consolidated core net income rose to P26.5 billion, up 3.8% from a 12 months earlier.
Reported net income, meanwhile, increased by 12.6% to P27.54 billion from P24.46 billion in the identical period last 12 months.
“CCNI for the six months…grew 3.8%, demonstrating resilience amid the difficult energy environment backed by its diversified energy portfolio,” Ms. Siy-Yap said.
Consolidated revenues climbed by 15.7% to P283.71 billion from P245.22 billion a 12 months earlier.
Total energy sales volume rose by 2% to 34,328 gigawatt-hours (GWh) from 33,778 GWh within the comparable period last 12 months.
The distribution utility business remained Meralco’s largest earnings contributor, generating P12.7 billion, or 48% of first-half earnings.
The facility generation business contributed P10.5 billion, or 39%, supported by higher earnings from the corporate’s expanding generation portfolio.
The remaining P3.3 billion, or 13%, got here from the retail electricity supply business, driven by higher energy sales to contestable customers and contributions from non-electricity businesses.
“While the (distribution utility) remained a major earnings contributor, the sustained growth of our power generation and (retail electricity supply) businesses helped provide greater stability across our business,” Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said.
“Our diverse earnings mix strengthens our resilience and allows us to proceed investing in our distribution network and clean energy capability while creating sustainable value over the long run,” he added.
Throughout the briefing, Mr. Pangilinan also commented on President Ferdinand R. Marcos, Jr.’s call in his fifth State of the Nation Address (SONA) on Monday for Congress to pass a measure removing system loss charges from consumers’ electricity bills.
Mr. Pangilinan said requiring the ability industry to soak up system losses would have implications across the electricity value chain.
“It’s a giant bill for the industry since it cuts across generation, transmission, and distribution. The bill is just too big for the industry to soak up all of it. So, there’s got to be that discussion. It’s going to affect the complete power industry on this country,” he said.
Mr. Pangilinan said absorbing systems loss charge could cost “tens of billions of pesos.”
“The system loss continues to be there. It’s not going to vanish. So, who’s going to pay for that? The industry? It’s going to cost tens of billions of pesos,” he said.
System loss charges are recovered by distribution utilities to cover allowable technical and non-technical losses incurred in transmitting and distributing electricity, subject to limits under the Electric Power Industry Reform Act (EPIRA) and Energy Regulatory Commission rules.
Asked in regards to the impact of the continued conflict within the Middle East on fuel markets, Mr. Pangilinan said the corporate stays focused on measures inside its control, including working closely with fuel suppliers, implementing prudent sourcing strategies, and strengthening its network.
Meralco is the country’s largest private electric distribution utility, serving greater than 8.1 million customers in Metro Manila and nearby provinces, including Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga, and Quezon.
Its controlling shareholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Useful Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.