Meralco Q1 energy sales dip as cooler weather curbs demand

MANILA ELECTRIC CO. (Meralco) reported a 1.8% decline in energy sales volume in the first quarter as cooler weather dampened demand.

“Lower temperatures reduced organic demand, partially offsetting the contribution of new connections,” Charina P. Padua, senior vice-president and head of customer relations and services at Meralco, said in a Viber message on Wednesday.

Energy sales volume for the January-to-March period fell to 12,273 gigawatt-hours (GWh) from 12,493 GWh a year earlier, she said.

Residential and commercial sales declined as colder weather curbed consumption and reduced the use of ventilation and air-conditioning systems, she said.

Industrial sales also slipped, weighed by operational constraints and macroeconomic headwinds affecting steel and plastics, along with limited output from embedded generators.

Meralco expects a 3% increase in energy sales volume this year, supported by demand normalization as temperatures stabilize following the high base from the El Niño period in 2024.

The projected growth would reverse the 0.7% decline recorded in 2025, when softer demand, increased rooftop solar adoption and slower economic growth weighed on sales.

Despite flat sales volume, the distribution business remained the biggest contributor to the power distributor’s earnings last year, with income reaching P29.55 billion.

Core net income rose 12% to P50.57 billion, driven by growth in power generation and steady performance of the distribution business.

Meralco is the country’s biggest private electric distribution utility, serving more than 8.2 million customers in Metro Manila and nearby provinces.

Beacon Electric Asset Holdings, Inc., the company’s controlling stakeholder, is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera