Meralco sees slight sales rise

Business World Online
Posted on October 12, 2014 09:58:00 PM

SALES of Manila Electric Co. (Meralco) grew slightly in the nine months ending September, an outcome attributed to cooler temperatures and increasing customer awareness of the need to use energy more efficiently.

Meralco President Oscar S. Reyes told reporters on Thursday night that preliminary data showed volume growth of 2.3% year-on-year.

“For the three quarters, our sales are up by 2.3%, fairly soft partly because of cooler temperatures in the first four and half months of the year and the effects of typhoon Glenda (international name: Rammasun),” Mr. Reyes said on the sidelines of an event.

Meralco earlier said that the damage to its facilities caused by typhoon Glenda -- which hit the country in mid-July -- could weigh on its full-year performance.

Mr. Reyes noted that sales from residential customers slipped during the period but this was offset by the improvement in commercial and industrial sales.

“Industrial, fortunately, was a bit stronger at 4% and commercial at over 3% but the residential is slightly negative,” he said.

At the same time, the utility observed that its customers have been implementing energy efficiency measures -- which in turn lowers the demand for electricity.

The official noted that even industrial and commercial customers are becoming “very sensitive” to the need for energy efficiency and conservation.

“We are also working with businesses in terms of trying to give them some ideas on how to better use electricity,” added Mr. Reyes.

For the first half of the year, Meralco’s reported net income edged up by 2.1% year-on-year to P9.637 billion, which was mainly due to a 3% increase in energy sales volume.

Meralco distributes electricity to Metro Manila, Bulacan, Cavite and Rizal, as well as parts of Batangas, Laguna and Quezon. Through Clark Electric Distribution Corp., the company also provides electricity to industrial customers in Clark Freeport Zone in Pampanga.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. -- Claire-Ann Marie C. Feliciano source