Meralco sees power sales heating up in 2nd quarter

MANILA, Philippines — Pangilinan-led Manila Electric Co. (Meralco) expects its energy sales to heat up in the second quarter, fueled by midterm election activity and a positive economic outlook.

Following steady results in the first three months, Meralco chief revenue officer Ferdinand Geluz said he anticipates energy sales to pick up this quarter, with momentum extending through year-end.

Geluz is counting on robust consumption during the election season and improving economic conditions, supported by lower inflation and interest rates.

Initial industry forecasts indicate a potential spike in power demand in the coming months amid election-related campaign rallies and the onset of the dry season.

On the economic front, inflation settled to its lowest level in nearly five years at 1.8 percent in March, while interest rates eased further to 5.5 percent in April.

Lower interest rates can boost demand in the housing market, which could be an opportunity for power utilities like Meralco to expand their customer base.

Customer energization was, in fact, a major growth driver for Meralco’s strong financial performance last year.

Moving forward, Geluz is also banking on the “anticipated recovery” of occupancy in the real estate sector.

From January to March, the company saw its consolidated energy sales marginally rise to 12,493 gigawatt-hours from 12,307 GWh in the same period last year.

By segment, residential sales edged up by three percent to 4,257 GWh due to sustained energization efforts and high heat indexes in Meralco’s franchise area.

Commercial sales, meanwhile, inched up by one percent to 4,744 GWh, driven by robust demand from consumer-focused businesses despite a slowdown in real estate.

In the industrial segment, sales were flat at 3,455 GWh as gains from non-metallic, semiconductor and plastics sectors were offset by declines in steel and food and beverage.

Notwithstanding this, Geluz expects Meralco to close the year with a 4.5-percent increase in power sales.

In another development, Meralco has upgraded the capacity of a power transformer at the Tayabas Delivery Point Substation to improve electric service in Quezon and neighboring towns in Laguna.

With capacity tripling to 300 megavolt-amperes, the substation would ensure a reliable and uninterrupted power supply to major industrial and commercial customers in both provinces, Meralco said.

“As energy demand continues to grow, we remain dedicated to building a resilient distribution network that is capable of supporting economic development that ultimately improves the lives of Filipinos,” Meralco head of networks Froilan Savet said.

Meralco, the country’s biggest power utility, recently scored a big win after President Marcos signed the measure extending its franchise for another 25 years.

The industry giant, whose original franchise is set to expire in 2028, has been granted authority to operate power distribution systems in Metro Manila and nearby provinces until 2053.