Manila Electric Co. (Meralco) is targeting a 4.6% increase in electricity sales volume for 2025, aiming to deliver 56,802 gigawatt-hours (GWh), up from 54,325 GWh in 2024.
The country’s largest power distributor reported a 6.4% growth in sales volume in 2024, reaching 54,325 GWh from 51,044 GWh in 2023.
According to Ferdinand Geluz, Meralco’s senior vice president and chief revenue officer, the company anticipates continued sales growth driven by increased customer energization and higher consumption levels.
Geluz noted that Meralco faces a challenging first half of 2025 due to a high baseline from the same period in 2024, when the company recorded a 9% growth rate.
“Much of the catch up will be in the second half, maybe. Maybe Q1 positive but a bit flattish, Q2 it will go up, Q3, Q4,” Geluz said, referring to the expected sales trajectory throughout 2025.
Meralco posted a consolidated core net income of PHP 45.1 billion in 2024, a 22% increase driven by higher electricity sales and growth in its power generation business.
The commercial segment led sales growth with a 7% increase, fueled by business expansion activities including the redevelopment of mall spaces, new store openings, and a rise in office occupancy rates. The hospitality sector, educational institutions, and restaurants also contributed to the uptick, benefiting from more in-person activities, increased tourism, and heightened demand for air-conditioning.
The residential segment saw a 9% growth, primarily due to the El Niño weather phenomenon, which increased average annual temperatures by 0.45°C and extended the use of cooling appliances. Consistent customer energization in horizontal developments around Greater Metro Manila and steady organic consumption further boosted residential demand.
In contrast, the industrial segment’s growth was modest at 1%. While the semiconductor industry showed slight gains, operational challenges and adverse market conditions in the steel industry, along with reduced output from embedded generators, restrained broader growth.
Meralco’s customer base grew to 8.04 million in 2024, up 3% from 7.83 million in 2023. The commercial, residential, and industrial sectors accounted for 38%, 36%, and 26% of the company’s total sales volume, respectively.
As Meralco navigates 2025, the interplay of weather patterns, economic conditions, and sector-specific performance will be key factors shaping its growth trajectory.
With Meralco projecting a more modest sales growth compared to last year’s surge, how do you think external factors like weather changes and economic policies will impact the power sector in the coming years? Share your thoughts below.
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