By Sheldeen Joy Talavera, A reporter
MANILA Electric Co. (Meralco) posted a 3.8% increase in consolidated net income (CCNI) in the first quarter, driven by strong contributions from its power generation and electricity sales businesses.
In a press conference on Wednesday, Meralco’s Chief Financial Officer, Betty C. Siy-Yap, said consolidated income increased to P26.5 billion, up 3.8% from last year.
Reported income, on the other hand, increased by 12.6% to P27.54 billion from P24.46 billion in the same period last year.
“CCNI for six months … grew by 3.8%, showing resilience amid a challenging energy environment supported by its diversified energy portfolio,” Ms Siy-Yap said.
Consolidated revenue rose 15.7% to P283.71 billion from P245.22 billion a year ago.
Total energy sales increased 2% to 34,328 gigawatt-hours (GWh) from 33,778 GWh in the comparable period last year.
The distribution services business remained Meralco’s biggest contributor, generating P12.7 billion, or 48% of first-half earnings.
The power generation business contributed P10.5 billion, or 39%, supported by higher revenues from the company’s expanding portfolio.
The remaining P3.3 billion, or 13%, came from the electricity retail business, driven by higher electricity sales to non-electricity customers and contributions from non-electricity businesses.
“Although (the power transmission company) remains a major contributor to revenue, the continued growth of power generation and (electricity stores) has helped us provide stability to our entire business,” said Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan.
“Our combination of various advantages strengthens our resilience and allows us to continue to invest in our distribution network and clean energy while creating sustainable value over the long term,” he added.
During the meeting, Mr. Pangilinan also commented on the call of President Ferdinand R. Marcos, Jr. in his fifth State of the Nation Address (SONA) on Monday that Congress passed a measure to remove the cost of system losses from consumers’ electric bills.
Mr. Pangilinan said requiring the power industry to absorb system losses will affect the entire power value chain.
“It is a big bill for the industry because it cuts generation, transmission and distribution. This bill is too big for the industry to take it all. Therefore, there should be that discussion. It will affect the entire electricity industry in this country,” he said.
Mr. Pangilinan said the charge for the loss of the absorption system could cost “tens of billions of pesos.”
“The loss of the system is still there. It will not disappear. So, who will pay for that? The industry? It will cost tens of billions of pesos,” he said.
System loss charges are incurred by distribution utilities to cover allowable technical and non-technical losses incurred in the transmission and distribution of electricity, subject to limits under the Electric Power Industry Reform Act (EPIRA) and Energy Regulatory Commission regulations.
Asked about the impact of ongoing conflicts in the Middle East on the fuel market, Mr. Pangilinan said the company remains focused on the means under its control, including working closely with oil suppliers, using strategic oil sourcing strategies, and strengthening its network.
Meralco is the largest independent electricity distributor in the country, 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.
The controlling shareholder, Beacon Electric Asset Holdings, Inc., is a subsidiary of PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund that is a subsidiary of MediaQuest Holdings, Inc., has an interest in PLDT Beneficial Trust Fund BusinessWorld through the Philippine Star Group, which controls.
