POWER DISTRIBUTOR Manila Electric Co. (Meralco) has lowered its energy sales volume forecast for this year due to cooler weather, a company official said.
At a recent press briefing, Ferdinand O. Geluz, Meralco’s senior vice-president and chief revenue officer, said the company has revised the forecast to 1-2% from 4-4.5%.
“The downgrade in our energy sales forecast stems mainly from industry, weather, and macroeconomic factors,” Mr. Geluz said.
For the six months ending in June, Meralco reported a slow uptick in energy sales volume of 0.5% to 27,091 gigawatt-hours (GWh), coming off a high base last year when the Philippines experienced the El Niño phenomenon.
Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan is banking on the generation business to drive the company’s goals.
“While energy sales volume growth has been lower than anticipated, we remain on track to meet our overall targets as power generation is expected to deliver higher-than-expected performance, offsetting the anticipated slower demand growth,” Mr. Pangilinan said.
In the first half, the distribution utility business accounted for 54% of Meralco’s core net income, which rose by 10% to P25.5 billion.
Mr. Pangilinan earlier said the power distributor is on track to hit its target earnings of P50 billion for this year, driven by its power generation business.
“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 said.
Meanwhile, in its retail electricity supply business, private equity firm CVC Asia has expanded its partnership with MPower to cover the renewal of existing accounts and the inclusion of new ones.
CVC Asia, a private equity strategy arm of global private markets manager CVC, has investments in Southeast Asia Retail, Inc. — the company behind Landers Superstore — and in Professional Services, Inc.
Through the government’s customer choice programs — the Competitive Retail Electricity Market and the Retail Aggregation Program — CVC Asia is transitioning its Philippine investments to access “more competitive rates, flexible energy options, and long-term sustainability.”
“This collaboration is a clear example of how we actively partner with our investee companies to unlock tangible, long-term value. By connecting them to more competitive and sustainable electricity solutions, we’re not only reducing operating costs — we’re also helping build more resilient, future-ready businesses,” said Brice Cu, senior managing director and country head of the Philippines at CVC.
Meralco’s majority owner, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera