Meralco customers’ power usage growth slows to about 4.9%
MANILA Electric Co. (Meralco) said power usage within its franchise areas rose about 4.9% by volume in 2017, lower than the growth posted in 2016, its president said.
“We might end 2017 [ with growth of about] 4.9% against a high base [ in 2016],” Oscar S. Reyes, Meralco president and chief executive officer, told reporters.
He said the expected increase in volumes last year came off a growth rate of 8.1% in 2016. Meralco will release its power supply and demand figures by next month.
“All the sectors have been showing hefty growth. Surprisingly industrial has shown significant growth, so with commercial.
“All of them on average are at around 4.5%,” Mr. Reyes said.
The listed electricity distribution utility serves four main sectors: residential, commercial, industrial and streetlights. It sources electricity mainly from eight power suppliers, including the wholesale electricity spot market.
Power usage is closely correlated with economic activity.
For the dry season, Mr. Reyes said Meralco is expecting growth of between 3.5% to 4%, or lower than the growth during the same period last year. He said all sectors served by the power distribution utility are expected to increase their usage.
“We have the installed capacity to meet summer demand, it’s just a question of there being no confluence of scheduled or forced outages or Malampaya shutdown,” Mr. Reyes said.
As of the third quarter of 2017, Meralco’s sales volume grew by 4% to 31,401 gigawatt-hours, with all its customer classes recording an increase in consumption.
Meralco’s franchise area in Luzon covers 36 cities and 75 municipalities, including Metro Manila and adjacent provinces.
Residential energy sales in the nine months to September increased by 4%. Commercial and industrial posted growth rates of 5% and 4%, respectively.
The company’s 65%- owned subsidiary Clark Electric Distribution Corp. also recorded sales volume growth of 3%, which was largely fueled by the industrial segment, which grew 6%. The growth in the segment offset a 1% decline in commercial sales volume.
In nine months to September, core net income grew 3% to P15.4 billion while reported income increased by 2% to P15.9 billion. Consolidated revenue hit P214.39 billion, up 10% from a year earlier.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. —