The Manila Electric Co. (Meralco) has revised its power sales forecast this year to only 4.6 percent, signaling a weaker performance versus the previous year. The revised projection comes following an exceptional spike in demand due to the effects of El Niño in 2024, which is unlikely to repeat this year.
Ferdinand Geluz, Meralco senior vice president and chief revenue officer, said the company projects consolidated power sales volume reaching 56,802 gigawatt hours (GWh) this year, slightly higher than the all-time high of 54,325 GWh reported in 2024. Geluz attributed the forecast slowdown to a reversal in weather patterns, including the shift from El Niño to La Niña, as well as the influence of other factors such as the closure of Philippine offshore gaming operations (POGOs), the expanding adoption of electric vehicles (EVs), the rise of rooftop solar, and broader macroeconomic conditions.
In 2024, Meralco power sales grew 6.4 percent from 51,044 GWh in 2023 to 54,325 GWh, driven by unusually high demand amid extreme weather events.
Despite the anticipated slowdown, Meralco’s financial performance remains strong. Revenue generation increased by 6 percent in 2024, reaching P470.36 billion, up from P443.61 billion in 2023. This was partly due to a 3 percent rise in customer base, which grew to 8.04 million from 7.83 million in 2023. The company also projects a 6.7 percent increase in net income reaching P49.6 billion this year, up from the previous year’s record of P46.47 billion.
Meanwhile, Meralco has secured Energy Regulatory Commission (ERC) approval to implement a refund scheme totaling P19.95 billion over 36 months. This relates to the over-recovery of rates from 1 July 2022, to 31 December 2024. Meralco plans to pass on the savings to its customers at a refund of P0.1189 per kilowatt-hour.
Although the ERC granted provisional approval for the refund, it disallowed Meralco’s proposed offsetting of under-recoveries from previous years, resulting in a higher-than-expected refund amount. A dissenting opinion was issued by ERC chairman Monalisa Dimalanta and commissioner Catherine Maceda, who favored a shorter 12-month refund period to provide faster relief to consumers.
Joe Zaldarriaga, Meralco vice president for corporate communications, expressed support for the ERC decision, highlighting the relief it would offer customers, especially with the anticipated rise in electricity demand in the hot months ahead. Meralco has yet to receive the official order but reported preparing to implement the refund in the upcoming billing cycle.
