Despite a lower demand in the first half of 2024, Manila Electric Co. (Meralco) forecasts a 4.6% increase in sales volume for the year, driven by anticipated growth in the second half. The company attributes the slower growth to weather patterns, POGO impact, EV adoption, rooftop solar, and macroeconomic factors.
Manila Electric Co. ( Meralco ), the country's largest power retailer, anticipates a 4.6 percent increase in sales volume this year, despite experiencing a dip in demand during the first half. Ferdinand Geluz, Meralco 's senior vice president and chief revenue officer, revealed that the company aims to reach a sales target of 56,802 gigawatt-hours (GWh) in 2025, marking a rise from the 54,325 GWh sold in 2024.
Geluz attributed the slower growth this year to a combination of factors, including the shift from El Niño to La Niña weather patterns, the impact of Philippine Offshore Gaming Operators (POGOs), the rise of electric vehicles (EVs), the adoption of rooftop solar, and broader macroeconomic influences. He noted that while the first half of the year presented challenges due to a high base growth rate of 9 percent in the first half of 2023 driven by El Niño, the company expects to see a rebound in sales volume during the second half.Meralco's consolidated distribution utility energy sales volumes recorded a 6.4 percent growth in 2024, reaching 54,325 GWh compared to 51,044 GWh in the previous year. Sales for Meralco and Clark Electric Distribution Corp. increased by 6 percent and 4 percent, respectively, while Shin Clark Power Corp. contributed an additional 4 GWh. The company's commercial segment dominated the sales mix with a 38 percent share, selling 20,406 GWh of energy in 2024, a 7 percent increase from 19,005 GWh in 2023. This growth was fueled by business expansion activities such as mall redevelopments, new store openings, and rising office occupancy rates. Hotels, educational institutions, and restaurants also experienced increased demand as in-person activities and tourist arrivals surged, leading to higher air-conditioning usage. The residential segment, accounting for 36 percent of the sales mix, grew by 9 percent to 19,455 GWh from 17,781 GWh in 2023. The strong El Niño phenomenon, which raised average annual temperatures by 0.45°C, prolonged the use of cooling devices at home, contributing to this growth. Consistent energization of horizontal developments in Metro Manila and healthy organic consumption further boosted residential sales. The industrial segment, comprising 26 percent of the sales mix, saw a modest 1 percent increase in sales volume to 14,318 GWh from 14,113 GWh in 2023. The slight growth in the semiconductor industry was insufficient to offset the negative impact of operational disruptions and unfavorable market conditions in the steel industry and a slowdown in dispatch from embedded generators
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