MANILA Electric Co. (Meralco) has lowered its energy sales growth forecast to just 1 to 2 percent for this year from an earlier 4.5 percent, citing persistent business and economic challenges.
Meralco earlier announced the cut on Monday and Meralco Senior Vice President Ferdinand Geluz on Thursday explained that the “downgrade in our energy sales forecast stems mainly from industry, weather, and macroeconomic factors.”
Elevated vacancies in the commercial real estate sector and cooler and wetter weather in particular, “softened consumption, especially compared to last year’s El Niño-driven spike.”
Geluz also said that macroeconomic pressures such as weaker economic forecasts, tepid tourism, global uncertainties, especially in the Middle East and US tariff risks were all expected to weigh on power demand.
Meralco reported higher energy sales in all segments in the first half, with the commercial segment accounting for 10,102 GWh, up from 10,068 GWh last year. The residential segment also saw growth to 9,779 GWh from 9,715 GWh and the industrial segment rose to 7,137 GWh from 7,097 GWh.
On Monday, Meralco reported a consolidated core net income of P25.54 billion for the first half, up 10 percent from the P23.21 billion recorded in the same period last year.
Reported net income rose to P23.64 billion from P22.44 billion a year earlier, while gross revenues rose to P245.22 billion from P237.48 billion previously.
“We remain on track to meet our overall targets as power generation is expected to deliver higher-than-expected performance, offsetting the anticipated slower distribution growth,” Meralco Chairman and CEO Manuel Pangilinan said.
“As we move into the second half, we remain focused on achieving key milestones that will enable us to meet our full-year profit target and business goals,” he added.
Also on Thursday, Meralco said that its retail electricity supplier MPower hasdstrengthened its partnership with CVC Asia by transitioning several of the latter’s local businesses into the Competitive Retail Electricity Market (CREM) and the Retail Aggregation Program (RAP).
CVC Asia is the private equity strategy arm of global private markets manager CVC, with key investments in Southeast Asia Retail Inc. (the operator of Landers Superstore), Professional Services Inc. (which runs The Medical City), and FAST Logistics Group.
The move enables Landers to join CREM and RAP, allowing it access to more competitive rates, flexible energy options and long-term sustainability.
Landers stores covered under the agreement include locations in Alabang, Arca South, Arcovia, Balintawak, Nuvali, Fairview, and Otis Manila. FAST Cold Chain Solutions Inc., a division of FAST Logistics Group, also migrated its Cavite-based cold chain facility to CREM.
The Medical City, meanwhile, renewed its contract with MPower, ensuring continued energy reliability for its flagship Pasig City hospital.
Meralco shares shed P10.00, or 1.83 percent, to P537.00 apiece on Thursday.
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