POWER distributor Manila Electric Co. (Meralco) saw its energy sales volume increase by 1.5% in the primary quarter (Q1), driven by the uptick in residential and industrial sectors.
Energy sales volume increased to 12,493 gigawatt-hours (GWh) from 12,307 GWh in the identical quarter last yr, Ferdinand O. Geluz, senior vice-president and chief revenue officer of Meralco, said in a Viber message last week.
For the primary 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 within the franchise area.”
“Business 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.
Alternatively, energy sales volume in the economic sector barely climbed by 0.2% to three,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 within the second quarter, all of the method to reach its full-year goal of 4.5%.
That is on the back of expected boost from “higher consumer spending during midterm elections, higher economy from lower inflation and rates of interest,” 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 within the previous yr, driven by warmer temperatures resulting from El Niño and sustained customer energizations.
This surpassed the corporate’s goal of 53,473 GWh for the yr.
The facility distributor’s distribution utility business accounted for 62% or P28.1 billion of the corporate’s total core net income last yr, which increased by 22% to P45.1 billion.
Meanwhile, Meralco said in a press release on Sunday that it had upgraded an influence transformer on the Tayabas Delivery Point Substation to support the growing demand in Quezon province and neighboring towns in Laguna.
The facility transformer’s capability 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 an additional 25 years, Presidential Communications Office Undersecretary Clarissa A. Castro earlier confirmed.
Meralco’s current franchise is about to run out in 2028. With the extension, the corporate could have the authority to distribute power to Metro Manila, Bulacan, Cavite, Rizal and choose areas in Batangas, Laguna, Quezon and Pampanga until 2053.
“The renewal reflects a shared effort to be certain that Meralco continues to fulfill 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 Helpful Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
