Meralco profit soars amid economic surge

The company attributed the growth to sustained energy sales growth, robust performance of the power generation and retail businesses as well as the higher energy sales of its distribution utility, or DU, unit

Manila Electric Co., or Meralco, the country’s largest distribution utility, reported a P37.1-billion consolidated core net income for full-year 2023, up 37 percent from P27.1 billion from the previous year as the economy returns to a strong growth momentum after the pandemic.

Meralco said consolidated reported net income during the period likewise grew by 34 percent to P38 billion from last year’s P28.4 billion.

The company attributed the growth to sustained energy sales growth, robust performance of the power generation and retail businesses as well as the higher energy sales of its distribution utility, or DU, unit.

Exceeded expectations

“I daresay that Meralco’s 2023 performance has exceeded expectations,” Meralco chairperson and CEO Manuel V. Pangilinan said at a press briefing on Monday.

“This year, we expect to move forward with our longterm goal of achieving sustainable energy security through our investments in utility-scale power generation projects, including exploring the possible adoption of nuclear energy in the country,” he added.

Consolidated revenues, on the other hand, grew by 4 percent to P443.6 billion last year, from P426.5 billion in 2022 due to the combined effect of the increase in energy sales of the DU and the downward impact of refund in 2022.

Last year, Meralco’s average retail rate notably rose by 11 percent to P10.55 per kWh from P9.52 per kWh year-on-year largely due to the 11 percent increase in generation charge, which accounted for about 66 percent of the total retail rate during the year.

On the other hand, Meralco’s average distribution charge accounted for 14 percent of the retail rate. Meralco’s approved tariff was P1.35 per kWh.

Expenditures hit P30B

According to Meralco, spending during 2023 reached P30 billion, of which 67 percent or P20.2 billion were utilized for new connections, asset renewals, and load growth projects, as well as pole relocation works to support various government infrastructure projects.

Meralco’s customer count stood at 7.8 million as of end-2023, up 3 percent from 7.6 million a year ago as the energization of new customers for both ordinary service and project-covered applications continued.

PHOTOGRAPH COURTESY OF MERALCO Meralco energizes GT Capital projects Manuel V. Pangilinan-led Manila Electric Co., or Meralco, has reinforced its commitment to support GT Capital Holdings Inc. through electricity supply for its township projects under the Federal Land product line. The deal was inked among (from left) Federal Land Inc. technical execution group head Alvin Ty, Federal Land NRE Global vice chairman Yusuke Hirano, Federal Land Inc. president and chief operating officer William Thomas Mirasol, GT Capital Holdings vice chairperson, and Federal Land Inc. chairperson Alfred Ty, Meralco executive vice president and chief operating officer Ronnie Aperocho, GT Capital Holdings chairperson Francisco Sebastian, Meralco senior vice president and chief revenue officer Ferdinand Geluz and Meralco first vice president and head of customer retail services Charina Padua.