Meralco’s power sales seen growing 7% this year

MANILA, Philippines - Manila Electric Co. (Meralco), the country’s biggest power distributor, expects a seven percent growth in electricity sales volume this year, reflecting robust economic activity in the country.

“I think for full-year 2012, we are probably trending around seven percent, year-on-year growth,” Meralco president and CEO Oscar S. Reyes told reporters.

Reyes attributed the expected increase to a strong demand from industrial, commercial and residential users.

“We noted a strong demand from industrial consumers. I think the semiconductors, construction-related industries like steel and plastic products recorded a strong demand. The food and beverage sector also recorded strong usage,” Reyes said.

Reyes said the construction of new malls and business process outsourcing office (BPO) space carried the commercial segment, which grew double digits.

“We have seen a decent growth in the residential sector maybe because of the impact of healthy flows of overseas Filipino remittances,” Reyes said, adding that the property sector is aggressive in residential development.

Consolidated sales of Meralco rose 7.6 percent to 24,448 gigawatt-hours during the first nine months of the year from a year ago.

Consolidated customer accounts grew 3.5 percent to a record 5.16 million as of end-September as the company added 130,042 new customers since the start of the year.

Reyes said the seven percent uptick will increase the three-year growth average to around six percent.

For next year, Meralco is projecting a continued sales growth, albeit at a slower pace.

“It is tough to make a call, but I think we are probably looking at maybe a four to five percent growth next year, that is the average (in the past few years),” Reyes said.

Specifically, Meralco recorded an average sales growth of five percent in 2001 to 2012.

The country is well-supported by both private consumption buoyed by overseas Filipino remittances and BPO earnings while capital investments are continuing given strong liquidity in the banking sector, Reyes said.

Meralco also expects the mid-term election season to perk up spending and electricity consumption.

“I think the concern is if the growth trajectory has really moved up and demand is robust, then I think we better accelerate building of new power generating facilities to ensure the big capacity,” Reyes said.