Meralco’s Q1 power sales boosted by robust economy

Manila Electric Co., the country’s biggest power distributor, expects electricity sales volume to have grown by as much as 10 percent in the first three months of 2012 compared to the same quarter of last year, reflecting robust and increased economic activity in the Philippines.

Oscar Reyes, chief operating officer of Meralco, explained that the surge in electricity sales volume during the period can be attributed to the “robust activities of the real estate industry and other related sectors including steel and metals.”

The semiconductor and food and beverage sectors contributed to the growth as well.

“Industrial growth has been quite healthy and at the same time, the commercial segment is also registering good growth [in terms electricity consumption],” Reyes added.

According to the Meralco official, increased government spending for infrastructure during the period had also helped boost Philippine industries as well.

Except for 2010 when the growth in sales volume surged to an all-time high of 10 percent, the average growth usually averages around 2.5 percent a year. Last year, the volume of energy sold during the first quarter was flat at 6,991 gigawatt-hours, compared to the same period in 2010.

“[The sales volume growth in the first quarter] is reflective of better operating environment for some of these companies, especially those that are construction-related. In the commercial segment, the growth came from malls and the business process outsourcing companies,” Reyes further disclosed.

He declined, however, to cite the impact of the first quarter’s performance on the company’s net income, noting that while sales volume had grown, the average distribution charge of Meralco was lower this year compared to last year.

In the first quarter of last year, the distribution, supply and metering charges, which accrue to Meralco, stood at P1.6464 per kilowatt-hour. Currently, the rate is lower at P1.6012 per kWh and this is expected to further decline by the second half of this year.

In another development, Meralco also said it signed an interconnection agreement with local renewable energy development Alternergy Wind One Corp.

This interconnection agreement will allow Alternergy to use Meralco’s distribution system for the electricity it will generate from its wind farm in Pililla, Rizal. The power project is expected to generate 90 megawatts.

“This is the first interconnection agreement for Meralco with a wind-powered renewable energy plant. Interconnection will be at Meralco’s existing Malaya-Teresa 115-kilovolt line.