‘Frugal’ energy consumers dampen Meralco sales

MANILA, Philippines – Earnings of Manila Electric Company (Meralco) from electricity consumption have slightly weakened as many consumers found ways to lower their power bills, the company’s top executive said.

Meralco President Oscar Reyes said that from January to September this year, the utility firm’s sales were up only by 2.3%.

“The way we see it is consumers are now aware of their energy usage in addition to the availablity of newer energy efficiency appliances. Even industrial and commercial customers are also sensitive to energy and efficiency measures. But, we at Meralco, (are) advocating that,” said Reyes.

Energy sales among Meralco residential consumers, Reyes said, have showed a “slightly negative” energy sales, compared to industrial and commercial customers which noted an increase of 4% and 3%, respectively. 99% of Meralco’s earnings come from electricity sales.

From January to September 2013, the company generated 25,616 gigawatt hours (GWh) to its customers, only an uptick of 5% in the same period in 2012.

Contributing to its expected slight performance from January to September 2014 would be the effects of typhoon Glenda in July, when many of its electricity facilities collapsed, following massive outages that stretched for days in some areas in Luzon.

Reyes also said that the cooler climate brought by tropical storms caused consumers to decrease their energy consumption.

Prior to Glenda, Meralco reported a 2% increase in net income. Its core profit reached P9.9 billion ($223.356 million*) in the first half last year, but revenues were down at P132.2 billion ($2.982 million*), which was 7% lower year-on-year.

Meralco raked P17.2 billion ($388.054 million*) worth of net income in 2013. -Rappler.com