Meralco posts lower Q1 profit

MANILA, Philippines - Manila Electric Co. (Meralco), the country’s biggest power distributor, posted lower profits in the first quarter of the year due to softer demand for power during the cooler months, its top official yesterday said.

“It will be lower than the first quarter of 2013,” Meralco president Oscar Reyes said.

Reyes explained that electricity volume was softer during the period because it was much cooler.

Meralco, however, has yet to announce exact first quarter income figures.

In the same period last year, Meralco reported a consolidated core net income of P4 billion compared with P3.4 billion in the first quarter of 2012.

In a separate briefing yesterday, Meralco officials reported that consolidated electric revenues in January to March declined one percent to P64.2 billion from the P65.1 billion in 2012.

“The lower electric revenues were largely due to the effect of lower pass-through charges during the three-month period, slightly offset by the moderate increase in energy sales volume,” Meralco said.

Nevertheless, consolidated volume of energy sales for the first quarter of 2013 rose one percent to 7,777 GWh compared to a year ago.

However, Reyes said the power distributor expects demand to pick up in the second quarter with the onset of the summer months.

“In the second quarter, just like in the past, demand will pick up again,” Reyes said.

He urged consumers to be more careful in using appliances this summer.

The Department of Energy (DOE) earlier advised the public to be prudent in using electrical appliances this summer.

Electricity rates are already on the rise because of the summer months.

Meralco announced on Tuesday that electricity rates in April rose 89 centavos per kilowatt-hour (kwh) after two consecutive months of reduction.

This would translate to an increase of P178 in the electricity bills of the average household consuming 200 kwh.

This after the April generation charge, the biggest component in the electricity bill, rose  69 centavos per kwh to P5.90 per kwh this month from P5.21 per kwh in March.