Meralco sees slower growth in sales on improving technologies

Manila Electric Co. (Meralco) expects to see a 4.5-percent growth in full-year sales in 2017 in the wake of a strong performance in the previous year as well as improving technologies proliferating in the industry.

Oscar S. Reyes, Meralco president and chief executive, said in an interview that growth in the volume of electricity sold would be just half of the 9 percent posted in 2016.

“In October we saw sales growing at about 7 percent year-on-year. It’s been a slow start in the first three months due to cooler temperature, but sales have increased since then,” Reyes said.

Earlier, Meralco reported that it sold 31,401 gigawatt-hours in the nine months to September, higher by 4 percent compared to the same period last year.

“For the [full] year we are seeing about 4.5 percent year-on-year,” Reyes said, “As of end of October, we have 4.5 percent growth year to date. I think there is not enough time (left in the year) to move it higher.”

He said that sales growth might move further down to 3.5 percent in 2018, based on latest projections.

“We have a relatively strong performance in 2016 and 2017,” Reyes said. “You have to take it within the context of high base effect in the past 24 months.”

The Meralco president attributed the decreasing numbers to increased energy efficiency in terms of facilities, appliances, industry practices and consumer behavior.

“We need to recognize what’s happening here and globally,” Reyes said. “That will figure out in [our performance].”