Business World Online
Posted on February 13, 2011 08:42:19 PM
POWER distribution utility Manila Electric Co. (Meralco) expects slower electricity sales growth this year following a spike experienced in 2010.
The company said its 2010 electricity sales growth was due to extraordinary circumstances like the elections and high temperatures.
Oscar S. Reyes, Meralco chief operating officer, said 2010 was a very good year for the power industry.
“[Last year] was a very good year for the entire power industry -- generators, the transmission company, and distributors. We’ve never seen growth to the extent of 9.9% in electricity sales. One reason for strong sales last year was very warm weather which resulted in high air-conditioning [use] in the first half of the year. Second was election spending. These two events [won’t be here] this year,” said Mr. Reyes.
Meralco expects only a 3% electricity sales growth for 2011. The average sales growth for the past several years is around 2.5%.
The utility had announced it would spend P45 billion in the next five years to improve service.
For the nine-month period that ended September of 2010, Meralco posted a core net income of P9.2 billion, up by 80% from P5 billion in the same period the previous year due to high energy sales.
The shift to the performance-based regulation scheme allowed the utility to earn P7 billion in 2009, from P2.6 billion in 2008.
Shares in Meralco, which is now controlled by the Philippine Long Distance Telephone Co. (PLDT) and Metro Pacific Investments Corp., closed last week at P216.80 apiece, down by 1%.
Mediaquest Holdings, Inc., a unit of the Beneficial Trust Fund of PLDT, has a minority stake in BusinessWorld. -- Emilia Narni J. David
Oscar S. Reyes, Meralco chief operating officer, said 2010 was a very good year for the power industry.
“[Last year] was a very good year for the entire power industry -- generators, the transmission company, and distributors. We’ve never seen growth to the extent of 9.9% in electricity sales. One reason for strong sales last year was very warm weather which resulted in high air-conditioning [use] in the first half of the year. Second was election spending. These two events [won’t be here] this year,” said Mr. Reyes.
Meralco expects only a 3% electricity sales growth for 2011. The average sales growth for the past several years is around 2.5%.
The utility had announced it would spend P45 billion in the next five years to improve service.
For the nine-month period that ended September of 2010, Meralco posted a core net income of P9.2 billion, up by 80% from P5 billion in the same period the previous year due to high energy sales.
The shift to the performance-based regulation scheme allowed the utility to earn P7 billion in 2009, from P2.6 billion in 2008.
Shares in Meralco, which is now controlled by the Philippine Long Distance Telephone Co. (PLDT) and Metro Pacific Investments Corp., closed last week at P216.80 apiece, down by 1%.
Mediaquest Holdings, Inc., a unit of the Beneficial Trust Fund of PLDT, has a minority stake in BusinessWorld. -- Emilia Narni J. David
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