Weather, POGO exit weigh on Meralco sales

Weather, POGO exit weigh on Meralco sales | Daily Tribune

Manila Electric Co. (Meralco) expects its power sales to remain flat this year as lower temperature and reduced consumption from former Philippine Offshore Gaming Operators (POGO) areas offset new customer connections.

“For the full year, I think we’re looking at between 0.5 and 0.8. So technically, it’s still flattish,” Meralco senior vice president and chief revenue officer Ferdinand O. Geluz said in an interview with reporters on the sidelines of the Singapore International Energy Week.

Geluz said Meralco continues to expand its customer base, adding 194,000 new accounts so far this year, which brings the total number of connections to 8.18 million. These newly energized customers contributed an additional 750 gigawatt hours (GWh) of demand.

However, he noted that milder weather this year compared to last year has led to an “organic contraction” in consumption.

Recovery seen next year

Despite the decline, Meralco expects sales to recover next year as temperatures normalize and new connections boost demand. He said a shift from El Niño to La Niña conditions could help regain lost sales.

Geluz added that the repurposing of properties vacated by POGOS, such as the planned township at Island Cove bought by EEI Corp., may also drive future consumption.

“We’re still confident that next year, with continuous energization and normalization, sales could increase by around 1,700 MWh, or over 3 percent,” he said, adding that typhoons and flooding continued to affect operations this year.

As of the end of September, Meralco said its distribution utility business posted consolidated energy sales of 40,719 GWh year-to-date, nearly flat compared with 40,872 GWh in the same period last year.

Meralco, which accounted for the bulk of the volumes, recorded a marginal 0.4 percent decline due to the extended period of inclement weather that dampened demand in the residential and commercial segments.

Meanwhile, Clark Electric Distribution Corp. and Shin Clark Power Corp. reported steady growth of 3 percent and 17 percent, respectively.