Meralco cuts 2026 sales growth forecast

MANILA Electric Co. (Meralco) expects energy sales volume to grow by 1-2% this year, lower than its earlier 3% projection, as the company adopts a more conservative outlook despite the potential increase in electricity demand from the looming El Niño phenomenon later this year.

“We’re still looking at positive growth this year in terms of sales… Much of the recovery will probably be realized [because of] the effects of El Niño,” Ronnie L. Aperocho, Meralco executive vice-president and chief operating officer, told reporters last week.

The revised outlook came after the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) raised its warning status from El Niño Watch to El Niño Alert due to the higher likelihood of the climate phenomenon developing in the coming months.

PAGASA said there is a 79% chance that El Niño will emerge between July and August and persist until early 2027.

El Niño is a climate phenomenon associated with drier-than-usual conditions in parts of the country, which can lead to droughts and dry spells while increasing electricity demand because of warmer temperatures.

For the first quarter, electricity sold by Meralco within its distribution utility business fell by 2% year on year to 12,273 gigawatt-hours, which the company attributed to cooler weather conditions that dampened demand.

“Recovery toward the summer months was tempered by intensified energy conservation measures following the escalation of the Middle East conflict,” Mr. Aperocho said.

He said the company expects sales growth to recover beginning in May amid the potential effects of El Niño.

To help improve energy sales, Mr. Aperocho said Meralco is accelerating and streamlining the energization process for customers applying for new connections.

“In fact, we have energized already more than 1,000 service applications for the month of April. And we will be sustaining this momentum,” he said.

Meralco is the country’s largest private electric distribution utility, serving more than 8.1 million customers in Metro Manila and nearby provinces, including Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga and Quezon.

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