Is Your Electricity Bill Rising, Too? Meralco Says the Heat Is Pushing its Energy Sales Up

Hot weather pushing up demand for electricity is normal, especially during the summer. But the scorching heat we've been experiencing the past few weeks, triggered by both the dry season and El Niño, has become unbearable—to the point people are insisting on staying home as much as possible. Even schools have been suspending face-to-face classes, while offices are adjusting work hours to avoid possible dangers from sweltering temperatures.

For many households, staying indoors with air conditioners on is one way to beat the heat. This leads to months when our power bills go up; and, in turn, means higher sales for electricity distributors. 

Power giant Manila Electric Company (Meralco) said as much in its latest earnings report. The company reported its consolidated net income rose to P9.6 billion in the first quarter of 2024, or a 19-percent increase from the P8.1 billion in the same period last year. Consolidated distribution utility energy sales volumes in the first quarter also rose to 12,307 GWh from 11,287 GWh, as volumes of Meralco and Clark Electric Distribution Corporation (“Clark Electric”) increased by nine percent and seven percent, respectively. 

According to Meralco, its robust quarterly sales volume growth was bolstered by a number of factors, including "higher temperatures, which rose by an average 0.50°C (from 26.71°C to 27.21°C) amid the El Niño phenomenon, one more day in February due to the leap year, and increased momentum of its recovering industrial segment.”

"An approximate 2.5 GWh of consumption per day is noted for every degree rise in temperature," it added.

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The Pangilinan-led company’s consolidated core net income, meanwhile, rose by 11 percent to P10.1 billion.

While it is true that household consumption is increasing due to the soaring temperatures, commercial establishments actually had the biggest share in energy sales at 38 percent, according to Meralco. The double-digit growth of 11 percent to 4,678 GWh this year has exceeded the pre-pandemic number in 2020.

The real estate sector led the way in the commercial segment, with growing demand for office spaces in central business districts. The retail trade sector followed as mall operators continue to see an upswing in customer traffic. Demand was sustained for hotels, restaurants, and educational institutions, though with notably higher use of cooling equipment.

It’s the same with residential consumption, which accounted for 34 percent of the increase in Meralco’s energy sales.

“Residential sales surged by 12 [percent] reaching 4,144 GWh by the end of March from 3,701 GWh a year ago, pushed by the prolonged usage of cooling appliances at home as the dry spells associated with El Niño persisted,” the company said.

The spike in electricity usage comes even as the Luzon and Visayas grids have been grappling with series of outages. Meralco has cautioned customers of a "challenging" power supply situation, so long as the dry season persists.

The power giant, helmed by tycoon Manuel V. Pangilinan, said it is looking to push through with the adoption of nuclear energy to address energy problems.

"Similarly, we will endeavor to implement more sustainable initiatives to cater to more underserved communities," Pangilinan said.

Meralco, the largest private power distributor in the country, serves Metro Manila and nearby provinces. With 7.9 million customers, it expects its full-year net income to reach over P40 billion, up from the P37.1 billion in 2023.