MANILA Electric Co. (Meralco) expects energy sales volume to grow by 1-2% this yr, lower than its earlier 3% projection, as the corporate adopts a more conservative outlook despite the potential increase in electricity demand from the looming El Niño phenomenon later this yr.
“We’re still taking a look at positive growth this yr by way of sales… Much of the recovery will probably be realized [because of] the consequences of El Niño,” Ronnie L. Aperocho, Meralco executive vice-president and chief operating officer, told reporters last week.
The revised outlook got here after the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) raised its warning status from El Niño Watch to El Niño Alert on account of the upper likelihood of the climate phenomenon developing in the approaching months.
PAGASA said there’s a 79% likelihood that El Niño will emerge between July and August and persist until early 2027.
El Niño is a climate phenomenon related to drier-than-usual conditions in parts of the country, which might result in droughts and dry spells while increasing electricity demand due to warmer temperatures.
For the primary quarter, electricity sold by Meralco inside its distribution utility business fell by 2% yr on yr to 12,273 gigawatt-hours, which the corporate attributed to cooler weather conditions that dampened demand.
“Recovery toward the summer months was tempered by intensified energy conservation measures following the escalation of the Middle East conflict,” Mr. Aperocho said.
He said the corporate expects sales growth to get better starting in May amid the potential effects of El Niño.
To assist improve energy sales, Mr. Aperocho said Meralco is accelerating and streamlining the energization process for patrons applying for brand new connections.
“In reality, now we have energized already greater than 1,000 service applications for the month of April. And we will likely be sustaining this momentum,” he said.
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 Helpful Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera