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Meralco Electric Co. (Meralco), the country’s largest electric distribution utility, has revised its energy sales growth forecast for the year due to economic concerns.
“Typically, the growth in the DU (distribution utility) is close to the real growth of the GDP (gross domestic product)…These are challenging times. These are tough times," Manuel V. Pangilinan, Meralco chairman and chief executive, said.
He further noted the broader economic slowdown, stating, “Even the bill volume of Maynilad Water is slow, I mean, water is more critical than power. I think the economy is slowing down, and we’re getting affected by that.”
Ferdinand Geluz, Meralco Senior Vice President and Chief Revenue Officer, reported a marginal increase of 0.5 percent in energy sales in the first half of 2025, reaching 27,091 gigawatt-hours (GWh).
“Modest gains from the first quarter were offset by cooler weather,” Geluz explained. He also pointed to a downgrade in the GDP growth forecast from six to 5.5 percent in April, attributed to uncertainties surrounding US tariff policy.
Given these economic conditions, Meralco is adjusting its growth forecast for 2025 to a potential one percent to two percent increase, a reduction from its initial projection of four to 4.5 percent.
According to Meralco's data, the commercial segment held the largest share of the company's energy sales at 10,103 GWh, followed closely by the residential segment with 9,778 GWh.
“Residential growth was tempered at 0.7 percent or roughly one percent versus almost 13 percent on the half last year, with contribution from new customers energized within the last 12 months, flattish per capita or contracted per capita organic sales,” Geluz elaborated.
He added that “Commercial posted a marginal growth of 0.3 percent versus almost 10 percent last year.”
Despite office vacancies stemming from the ban on Philippine Offshore Gaming Operations (POGOs), Geluz stated that growth in the retail and restaurant sectors helped offset this impact on Meralco's commercial segment.
Despite the slowdown in energy sales, Meralco's chief sees an upside in the generation business, which has shown significant expansion in the first half of 2025.
“I think the prospects for generation is quite bright. Probably more than double our capacity," Pangilinan stated.
Beyond generation growth, Meralco's local retail electricity supplier (RES), MPower, has expanded its collaboration with CVC Asia, a private equity strategy firm. MPower and CVC Asia have renewed their partnership to facilitate the integration of the Competitive Retail Electricity Market (CREM) and the Retail Aggregation Program (RAP).
CREM allows companies with a 500-kilowatt (kW) demand threshold to choose their own power supplier. RAP enables multiple end-users to combine their demand to meet the 500 kW threshold, allowing them to select their own supplier collectively.
CVC Asia has three investments in the Philippines: Southeast Asia Retail, Inc. (operator of Landers Superstore), Professional Services, Inc. (managing The Medical City), and FAST Logistics Group.
Under the renewed CREM and RAP deal, seven Landers branches—Alabang, Arca South, Arcovia, Balintawak, Nuvali, Fairview, and Otis Manila—will be covered. Additionally, FAST Cold Chain Solutions has transitioned its Cavite facility to CREM to support its emission reduction targets. The Medical City's renewed contract also secures sufficient supply for its flagship hospital complex in Pasig City.
Redel Domingo, Meralco's First Vice President and MPower head, expressed optimism that the partnership will encourage other industry players to consider these customer choice programs from the Energy Regulatory Commission (ERC). "The RAP revolution empowers electricity consumers with unprecedented freedom to choose their energy providers and participate in the energy market despite being below the prevailing RCOA threshold," he said.
Brice Cu, Senior Managing Director and Country Head of CVC Philippines, emphasized the partnership's benefits, particularly in cost-effectiveness.
“This collaboration is a clear example of how we actively partner with our investee companies to unlock tangible, long-term value. By connecting them to more competitive and sustainable electricity solutions, we’re not only reducing operating costs,” Cu stated.
