Strong power sales lift Meralco profits

Driven by robust performance in its distribution and power generation businesses, Manila Electric Co. (Meralco) closed 2025 as a banner year after it booked an 11 percent rise in consolidated net income (CCNI) to P51.1 billion from P45 billion a year ago.

At a briefing on Monday, Meralco chief financial officer Betty C. Siy-Yap reported that the distribution utility business accounted for the largest share at 58 percent, or P29.6 billion, while the contribution of the power generation business grew to 33 percent of the total, or P16.8 billion. 

The retail electricity supply and non-electricity businesses contributed a combined 9 percent at P4.2 billion.

Meralco’s average retail rate rose 12 percent to P11.81 per kilowatt-hour (kWh) by the end of December, mainly due to higher fuel costs for generation, increased transmission charges, and regulatory adjustments. 

Purchased power costs climbed 9 percent to P377.3 billion as generation companies billed higher costs during the year. 

“Meralco had another record year in 2025 – marked by a double-digit growth in our CCNI and full-year profit that surpassed our target,” Meralco Chairman and CEO Manuel V. Pangilinan said. 

“These results were driven by the steady performance of the core distribution business and solid growth of the power generation business, supported by disciplined financial management. Our strategy of maintaining a balanced mix of regulated and unregulated operations has served us well,” he added. 

Based on the company’s full-year report, consolidated capital expenditures totaled P108.9 billion, with about 73 percent allocated to Meralco PowerGen Corp.'s MTerra Solar and other renewable energy projects, while P28.5 billion supported distribution upgrades, new connections, and government infrastructure projects.

Operating expenses increased 6 percent to P43.5 billion, reflecting higher maintenance, IT investments, cloud and software subscriptions, and additional staffing for power plants. 

Energy sales across Meralco’s distribution network totaled 53,997 gigawatt-hour (kWh), slightly below the record-high 54,325 GWh in 2024. 

Residential and commercial demand fell due to cooler temperatures, typhoons, economic slowdown, and increased rooftop solar adoption, while industrial demand rose one percent, anchored by semiconductors and construction sectors.

The company’s customer base reached 8.2 million, up 2 percent from the previous year.