Philippines: Meralco expects 6% growth in Q3 energy sales

MANILA, Philippines — The Manila Electric Co. (Meralco) expects a six percent growth in energy sales for the third quarter, buoyed by the recovery of the commercial sector.

Meralco first vice president and chief commercial officer customer retail services Ferdinand Geluz said the company’s energy sales during the months of July, August, and September recorded growth ranging from anywhere between six and eight percent per month.

“For the third quarter, we can hit a six percent growth in energy sales.  The commercial sector is on the recovery path since there are no more lockdowns, unlike last year,” Geluz said.

“Commercial is growing double digits. We’re still below 2019 levels, but since it is the sector severely affected, there are months showing growth of 15 percent, 19 percent. I think this growth pattern will continue,” he said.

Geluz said the resumption of in-person classes contributed to the increase in Meralco’s energy sales.

“By November, perhaps, the commercial sector may see a further increase,” he said.

As commercial sector picks up, however, Meralco has seen a corresponding decline in demand from the residential customers because more people are getting out of their houses.

“That is because once mobility improves, students go to schools. Our residential becomes flat, sometimes it even turns negative,” Geluz said.

For the industrial sector, Geluz said Meralco is seeing a steady three to four percent growth in the third quarter compared to same time last year.

The residential and commercial segments both accounted for 35 percent of Meralco’s sales mix in the first half, while industrial contributed 30 percent.

Meralco’s energy sales volumes in the first semester improved by six percent to 23,968 GWh due to the continued easing of pandemic-related restrictions and higher temperatures.

As early as April, Meralco’s monthly sales volumes have already breached the 4,000-GWh level, and were sustained throughout the second quarter, leading to an all-time high of 4,464 GWh in June.