Meralco’s energy sales may grow 6-7% this year

By Danessa Rivera (The Philippine Star) | Updated June 27, 2016 - 12:00am

http://www.philstar.com/business/2016/06/27/1596898/meralcos-energy-sales-may-grow-6-7-year

MANILA, Philippines - Power distributor Manila Electric Co. (Meralco) is projected to register between six and seven percent growth in energy sales growth this year, reflecting a similar trend from last year, its top official said.

Meralco chairman Manuel V. Pangilinan said in an interview energy sales is seen to be at a “high single digit” growth, almost the same as last year.

The company does not expect to sustain double-digit growth in sales at the start of the rainy season, as in the first five months of the year, Pangilinan said.

In 2015, energy sales rose 5.6 percent to 37,124 gigawatt-hours (gwh) from 35,160 gwh.

“As for demand in the past six months, May was way up there. In June, it has dropped a bit because it’s cooler temperature. June is around eight to nine percent, which is okay, something not to be alarmed,” Pangilinan said.

May energy sales rose 10 percent year-on-year to 3,521 gwh, resulting in a year-to-date energy sales of 12.4 percent growth, Meralco SVP and head for customer retail services and corporate communications Alfredo Panlilio said in a text message to The STAR.

 “While for June 2016, estimates will be around 5.5 percent versus last year albeit still the highest month the whole year in terms of gwh,” he said.

For 2016, Pangilinan said Meralco has yet to come out with a core net income guidance until it sees the results of the first half of the year.

Earlier, Meralco reported a 12.1 percent rise in sales in the first four months of the year as demand spiked due to the extremely hot weather caused by the El Niño phenomenon.

But company president and CEO Oscar Reyes said sales volume growth was expected to slow starting May due to cooler temperatures with the onset of the rainy season.

Meanwhile, Panlilio had said the impact of cooler temperature will be tempered by strong customer growth and business appetite.

“We may not see 12.1 percent but maybe won’t see three percent, but maybe it’s somewhere in the middle,” he added.