Manila Electric Co., the biggest retailer of electricity, expects sales volume growth to slow down next year due higher energy efficiency awareness and increased solar rooftop penetration.
“We are still calling potential growth of say three and half percent (next year)… So, it was 9 in 2016, likely 4.5 in 2017 and 3.5 in 2018,” Meralco president Oscar Reyes told reporters.
Reyes said the utility saw lower growth next year after a high sales volume base in 2016.
“I think we have a relatively strong performance in 2016 and 2017, so I think you have to take it in the context of high base effects of the past 24 months,” Reyes said.
He said Meralco had to take into consideration domestic and international developments that impact on sales growth.
“I think we have to recognize what’s happening now not only here but also globally. We are seeing increased energy efficiency in terms of facilities, appliances, practices and mindset, behavior,” Reyes said.
He said Meralco had also seen “increasing adoption of distributed generation, specifically solar rooftops.”
“Even that, we are fully engaging it, supporting it through Spectrum to provide the best rooftop solar solutions in terms of quality and pricing and offerings,” Reyes said.
“People ask why are we doing this, doing things that will erode our volumes but as I mentioned, we serve our customers and if that’s what the customer wants then we will do it. We believe that we have the responsibility for the interest of our customers,” he said.
Reyes, however, said Meralco also expected some “offsetting” to occur such as customers having more disposable income due to energy efficiency.
“There are new things as customers are able to save because of these trends and changes. It also puts in more disposable income to their pockets and they’re demand for other things which will have an electricity impact, that one we still have to see what is the offsetting,” Reyes said.