MANILA, Philippines — Manila Electric Co. (Meralco) reported a 1.8 percent decline in energy sales for the first quarter of 2026, as a combination of lingering La Niña conditions and macroeconomic headwinds dampened consumption across all sectors.
Consolidated sales for the January to March period dipped to 12,273 gigawatt hours (GWh), down from 12,493 GWh during the same period last year.
Meralco executives identified several key drivers for the softened demand:
- The “La Niña” Effect: Above-normal rainfall and cooler temperatures reduced the organic demand for cooling systems, particularly in the residential sector.
- Industrial Headwinds: The industrial segment saw a decline due to operational constraints and high costs affecting steel and plastics production.
- Economic Pressures: Macroeconomic challenges, including the exit of offshore gaming operators (POGOs), temporarily impacted commercial demand, though a real estate recovery is expected to offset this in the coming months.
Despite the slow start to the year, Meralco remains confident in its full-year outlook.
- Full-Year Target: The utility giant is maintaining its 3 percent growth target for 2026, betting on a rebound as temperatures rise in the second quarter.
- Network Modernization: Meralco is actively pursuing partnerships with electric cooperatives like Batelec II and Socoteco II to modernize regional networks, though executives noted that “political interference” has caused some delays in these initiatives.
In a recent briefing, Meralco’s head for external affairs, Arnel Casanova, urged cooperatives in Batangas and General Santos City to fast-track public bidding processes to ensure transparent and modernized power services. “With competitive and transparent public bidding, we could isolate the process and make sure the best interests of the public will be protected,” Casanova said.
Meralco currently serves over 8.2 million customers in Metro Manila and neighboring provinces, making its sales figures a primary barometer for the health of the Philippine economy.
