Power retailer Manila Electric Co. (Meralco) expects a 4.6-percent sales volume growth this year despite the lower demand in the first half, a top executive said.
Meralco senior vice president and chief revenue officer Ferdinand Geluz said the 2025 target of 56,802 gigawatt-hours would represent an increase from 54,325 GWh sales in 2024.
“Initially, we were targeting 5 [percent growth] but our base was high, we exceeded 6. We ended up 6.4 percent. The first half is a bit of a challenge because we grew 9 percent last year, right because of El Niño, but much of the catch-up will probably be in the second half,” Geluz said.
Geluz said the lower growth this year could be attributed to the “reversal of weather patterns…extremes from El Niño to La Niña, plus other factors like the estimate impact of POGOs, EVs [electric vehicles], rooftop solar and other macroeconomic factors,” he said.
He said Meralco eyes a positive growth in the first quarter and a “bit flattish” growth in the next three quarters.
Meralco said consolidated distribution utility energy sales volumes recorded a 6.4-percent growth, ending 2024 with 54,325 GWh from 51,044 GWh the previous year.
Volumes attributable to Meralco and Clark Electric Distribution Corp. increased 6 percent and 4 percent, respectively, while Shin Clark Power Corp. brought in additional 4 GWh.
Meralco said the commercial segment accounted for the largest share of 38 percent in the sales mix in 2024, closing the year with 20,406 GWh of energy sold, or 7 percent more than 19,005 GWh in 2023,
This was led by business expansion activities such as redevelopment of mall spaces, new store openings and surge in office occupancy rates.
Hotels, educational institutions and restaurants also showed an upswing in demand with more in-person activities and tourist arrivals, coupled with higher demand for air-conditioning.
The residential segment, which accounted for 36 percent of the sales mix, grew 9 percent to 19,455 GWh from 17,781 GWh in 2023 as the strong El Niño phenomenon, which raised annual average temperatures by 0.45°C, triggered prolonged usage of cooling devices at home.
Meralco said consistent energization of horizontal developments located in greater Metro Manila and resilient organic consumption further boosted residential sales.
The industrial segment’s share in the sales mix was at 26 percent. Its sales volume improved 1 percent to 14,318 GWh from 14,113 GWh as the slight growth in top contributor semiconductor industry was not enough to offset the negative impact of operational disruptions and unfavorable market conditions in the steel industry and slowdown in dispatch from embedded generators.