Veco remains bullish amid softer demand

CEBU, Philippines - The Visayan Electric Co. (VECO) remains bullish on energy sales amid its expectations of softer electricity demand this year compared last year which saw the happening of big events such as the election period. 

VECO Chief Operating Officer Anton Perdices said the company's energy sales performance in the first half of 2017 "is not as good as last year" which marked by several big events such as the Sinulog, International Eucharistic Congress and the national election activities.

"We also had several malls that opened last year," he said in a roundtable interview with Aboitiz executives yesterday.

"The election year is also hard to beat," he added.

He said the temperature last year was also hotter which triggered the increased electricity usage.

"Last year was a bit warmer," he said.

The highest daily peak demand that VECO recorded this year was 507 megawatt (MW) in May, lower than the 524 MW recorded last year also in May.

VECO records an average daily peak demand of 300-400 MW.

Perdices said the temperature significantly affects per-kilowatt-hour sales.

Despite the projected softer electricity demand this year, the official said the Aboitiz-led distribution utility maintains its 3-5 percent growth target in energy sales as it remains optimistic on Cebu's economic boom.

This growth target is also being set for next year.

"So as long as the economy does well and the city is growing, construction is booming, and new malls and strip malls are opening, we'll go with that," he said.

"Basically we are an economic-based industry," Perdices noted. "If the economy is good, we're doing good as well."

VECO distributes power in the municipalities of San Fernando, Minglanilla, Consolacion and Lilo-an; as well as the city of Naga, Talisay, Cebu and Mandaue —  all in the province of Cebu.

VECO is the country’s second-largest privately owned distribution utility.

 For his part, Jim Aboitiz, executive vice president and COO for distribution group of Aboitiz Power, said that prospects for the energy sector this year remains positive on the back of continued economic growth.

"Prospects for power consumption remain good," he said.

“We're still seeing growth this year," he added. (FREEMAN)