Manila Electric Co. said Tuesday first-quarter net income increased 26 percent year-on-year to P8.07 billion as revenues of the country’s largest power distributor got a boost from higher electricity sales and contributions from its power generation units.
Total revenue in the January-March quarter was up 23 percent on year to P105.64 billion on higher power rates, increased sales volume and earnings from PacificLight Power Pte Ltd. and the operation in February of a new 68 megawatt solar farm in Ilocos Norte.
Electricity sales in the first quarter reached 11,287 gigawatt-hours, driven mainly by an 11 percent growth in energy sold to commercial customers.
Meralco said average retail rate increased by 17 percent to P10.41 per kilowatt-hour from P8.89 per kwh. Generation charge, which accounted for about 68 percent of the total retail rate, went up by 33 percent; while transmission charge, comprising 8 percent of the retail rate, increased by 6 percent.
The average distribution charge of P0.93 per kwh, down by 30 percent after Meralco implemented a distribution rate true-up adjustments which averaged P0.53 per kwh during the quarter. About 93 percent or a total of P44.6 billion of the P48.3 billion total DRTU adjustments ordered by the Energy Regulatory Commission for refund have already been credited to the customers’ bills as of end-March and the remaining refund amount is expected to be settled by May 2023.
Purchased power cost increased by 28 percen t to P78.6 billion from P61.7 billion due to an increase in Malampaya gas prices.
In the first quarter, Meralco spent P5.1 billion for capital expenditures, with P4.5 billion used for networks projects consisting of new connections, asset renewals, and load growth projects.
Operating expenses increased by 15 percent to P9.5 billion driven by higher bills management-related expenses, information technology licenses and maintenance, and higher manpower and cybersecurity costs of subsidiaries with increasing digitalization and work accomplishments for the construction unit.
