MANILA Electric Co. (Meralco) recorded a basic net profit of 13.1 billion pesos in the first six months of 2022, up 15% from the 11.4 billion pesos recorded in the same period it a year ago.
At a press conference on Monday, the nation’s largest electricity distributor attributed its rise in bottom line to strong energy sales and profits from the power generation business.
In the January-June period, Meralco said consolidated revenue improved 34% to 199.6 billion pesos from 149.1 billion pesos, mainly due to higher passed-on production and other expenses due to the persistent increase in world fuel prices, as well as the contribution to income from the power generation activity which amounted to 13.6 billion pesos.
The average retail rate increased by 18% from P7.92 per kWh to P9.33 per kilowatt hour (kWh), generation charges, which accounted for approximately 62% of the total retail rate, increased by 30 % due to rising fuel costs. , the depreciation of the peso and the rise in spot market prices.
Transportation costs, which represent 9% of the retail rate, increased by 14%. Subsidies and taxes, 11% of the retail rate, also increased by 12%.
“The increase in pass-through charges was mitigated by the average reimbursement of P0.34 per kWh of distribution over-recoveries, totaling P5.7 billion for the period, as ordered by the Energy Regulatory Commission. energy,” Meralco said.
The average distribution charge of 1.55 pesos per kWh, which represented 13% of the retail tariff for the first half of 2022, fell by almost 3%, as the sales mix shifted towards commercial customers under the continued easing of quarantine restrictions.
Consolidated energy sales volume from Meralco’s distribution services in January-June 2022 exceeded pre-pandemic levels, as it increased 6% to 23,968 gigawatt hours.
The company said it spent $14.2 billion in capital expenditures to strengthen the distribution network and further improve customer service for the first half of 2022.
More customers at 7.5 million
By the end of June, Meralco had recorded a total of 7.5 million customers, a 3% increase from 7.3 million in the first half of 2021. use buildings, housing estates and telecommunications customers,” Meralco said.
During the six-month period, Meralco also continued to expand and modernize distribution system facilities and pole relocation activities while striving to provide safe, reliable and adequate electrical service.
Major network projects completed include the development of the Commonwealth Gas-Insulated Switchgear (GIS) substation in Quezon City and the Escoda GIS substation in Manila; upgrading of banks at Calumpit substation in Bulacan; and rehabilitation of the 115 kilovolt GIS control system at the Legaspi substation in Makati.
“Although uncertainties and risks remain, we expect our country to accelerate the pace of economic recovery under the new government of President Ferdinand Marcos Jr. Meralco will be ready to meet the growing electricity needs of our customers and the accelerating government infrastructure projects and initiatives to help our country weather the lingering effects of the pandemic and move forward,” said Meralco Chairman Manuel Pangilinan.
“We remain optimistic that Meralco will be able to maintain its financial performance through 2022 and deliver on its commitment to our customers and shareholders as we pursue investments to further improve our distribution infrastructure and services. , building new electrical capacity to improve the overall electricity supply – all to ensure the country’s long-term energy security. In this regard, Meralco will work closely with the government of President Marcos and private sector partners. for a united, more resilient and stronger Philippines,” Pangilinan added.