Manila Electric Co. (Meralco) saw its profits dipping by nearly a third in 2020 as the slight increase in demand for electricity from its residential customers could not offset the sudden drops in demand from its commercial and industrial clients.
Based on a regulatory filing, Meralco’s reported net income stood at P16.32 billion as of end-December, a 30-percent plunge from P23.29 billion the year prior, as its revenues declined by 14 percent to P275.30 billion from P318.32 billion.
Meralco’s consolidated core net income, meanwhile, fell by 9 percent to P21.7 billion from P23.8 billion.
Its sales volume went down by 7 percent to 43,572 GWh from 46,871 GWh, as its industrial and commercial customers consumed less electricity last year, accounting for an 11-percent and 20-percent drop, respectively. Its residential customers, meanwhile, grew by 13 percent in terms of consumption.
Residential customers now account for bulk of Meralco’s energy sales at 38 percent, followed by commercial at 34 percent, and industrial at 28 percent. Last year, commercial customers account for 39 percent of total energy sales, followed by residential at 31 percent, and by industrial at 29 percent.
Meralco was able to reduce its costs and expenses by 11 percent to P254.31 billion from P287.08 billion, helping cushion the impact of the pandemic on its financial standing.
Meralco Chairman Manuel V. Pangilinan said his group still foresees uncertainties for a comeback this year, but noted encouraging signs of recovery.
“It’s a very volatile environment that we foresee for 2021 given the continuing effect of the pandemic in the economy,” he said in a briefing. “For the better part of the first quarter our numbers will be likely lower than last year.”
He noted that his group hopes to see a “positive trend” for the balance of the year.
The lockdown and mobility restrictions resulted in a significant reduction in the demand for power last year, prompting the company to invoke the Force Majeure (FM) provision in its Power Supply Agreements (PSAs) for the duration of the lockdown, reducing fixed charges for generation capacity that would have been charged by suppliers.
