Manila Electric Co. (Meralco) reported a slight drop in power sales in 2025 as cooler weather and weaker demand from households and businesses reduced electricity use.
The country’s largest power distributor said full-year consolidated energy sales slipped by 0.6 percent to 53,997 gigawatt-hours (GWh), down from a record 54,325 GWh in 2024. The decline followed the end of the El Niño heatwave, which had boosted electricity use a year earlier.
Residential power consumption fell by 2 percent to 19,060 GWh as cooler conditions under La Niña reduced the need for air conditioning and cooling appliances. Commercial sales also dipped by 0.4 percent to 20,326 GWh, reflecting weak activity in offices, hotels, and real estate, where vacancies remain high and continue to limit expansion in restaurants and retail.
These trends point to softer consumer spending and cautious business activity, as electricity use is often a proxy for economic momentum.
Industrial customers were the exception, posting a 1 percent increase in power use to 14,465 GWh. Higher demand from semiconductor firms and construction helped offset weaker output in food, beverage, and plastics manufacturing.
The slowdown continued into early 2026. Meralco said January energy sales declined by 0.3 percent year-on-year to about 4,048 GWh, again due to cooler weather.
Economists said the weather-driven drop follows an unusually high base in 2024, when extreme heat pushed electricity consumption to record levels. The exit of Philippine Offshore Gaming Operators by end-2024 may have also reduced demand in 2025.
Despite the softer numbers, Meralco expects a rebound starting in the second quarter of 2026, supported by a growing customer base, more normal weather patterns, and early signs of economic recovery after last year’s slowdown.
