Manila Electric Co. (Meralco) reported a sales volume growth of 8.7 percent in the first half of 2024 to 26,952 gigawatt-hours from a year ago on strong demand from residential and commercial customers.
Meralco’s power sales are among the indicators of economic growth, as its franchise area—Metro Manila and surrounding provinces—account for more than half of the Philippines gross domestic product.
Meralco senior vice president and chief revenue officer Ferdinand Geluz said sales volume also grew 7.5 percent in June to 4,992 gWh from the same period last year.
He said the El Niño’s “real feel temperature” impacted residential consumption, while the entry of more residential customers also boosted demand.
Geluz said Meralco’s subscribers also increased by nearly 200,000 this year, which helped drive demand. He said the commercial sector saw stronger demand on newly-energized hotels, retail, leisure and entertainment establishments and increased occupancy or patronage of hotels, restaurants, retail and retail estate establishments.
“Warmer temperatures also have impact on commercial energy consumption [especially cooling equipment],” he said.
Geluz earlier said full-year sales would likely rise 5 percent to 6 percent this year.
Meralco’s consolidated distribution utility energy sales volume in the first quarter rose to 12,307 gWh from 11,287 gWh, as sales of Meralco and Clark Electric Distribution Corp. increased by 9 percent and 7 percent, respectively.
The company said the strong quarterly sales volume growth was bolstered by a confluence of sales catalysts that included higher temperatures which rose by an average 0.50°C (from 26.71°C to 27.21°C) amid the El Niño phenomenon, one more day in February due to the leap year and increased momentum of its recovering Industrial segment.
Meralco recorded a daily consumption increase of 2.5 gWh for every degree rise in temperature.
Commercial segment had the biggest share at 38 percent in the energy sales mix in the first quarter, while residential and industrial accounted for 34 percent and 28 percent, respectively.
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