Meralco says generation project still on track

Business Mirror
WEDNESDAY, 08 FEBRUARY 2012 19:20 PAUL ANTHONY A. ISLA / REPORTER


THE Manila Electric Co. (Meralco), the country’s largest power retailer, continues to pursue power generation projects to meet an anticipated increase in demand. “Our [planned] peaking plant is still under consideration. We’re looking at a number of power projects and we’re conducting a feasibility on gas-fired plants,” Manuel V. Pangilinan, President and Chief Executive told reporters.


Meralco PowerGen Corp., Meralco power generation arm, recently took a controlling interest in Redondo Peninsula Energy Inc. and will construct and operate a 600-megawatt circulating fluidized bed coal-fired power plants at the Subic Bay Freeport Zone in Zambales.


The other shareholders of RP Energy include AboitizPower-led Therma Power, Inc. and Taiwan Cogeneration International Corp.-Philippine branch.


Pangilinan also noted that power supply might be tight in the next two to three years should the commercial and industrial sectors continue to post strong growth rates.


Meralco saw an increase in sales volume in January this year. Its top official said sales volume increased by 8 percent in January this year compared with the same period last year.


“We’re pleasantly surprised with the extent of the increase. January sales is 8-percent higher ahead of last year, so if we are a bit of an economic indicator, that’s a good sign for the economy. The growth came mainly from new connections and about half from organic growth,” Pangilinan said.


He attributed the higher January sales to the increase in sales volume from the commercial and partly industrial customers that reflected a rebound in the sector, which had been affected by the financial crisis in the US.


Pangilinan noted that the company is looking at a profit guidance of more than P14.5 billion for the year. “Profit guidance for the year should be higher than last year,” he said.


It will be recalled that Meralco set an income guidance of P14.5 billion last year, but Pangilinan declined to discuss the power retailer’s financial performance, saying that it will soon formally announce last year’s financial results.