Meralco cuts loss to P748 M in Q1
Wednesday, April 26, 2006
By MYRNA M. VELASCO
Manila Electric Co. reported yesterday a lower net loss R748 million in the first quarter of this year, compared to P1.24 billion in the same period of 2005.
However, without the provision for probable losses pending any adversarial ruling that may rendered by the Supreme Court on its rate adjustment application, the company noted that it should have logged a modest income of P179 million.
Despite the dire financial circumstances it has to grapple with, Meralco reported that it has registered increase in revenues by at least 14.2 percent to P41.61 billion from last year’s P36.45 billion. Total growth in electricity sales from January to March was placed at 4.2 percent.
It noted that power deliveries to its customers were highest in March understandably because of the hot weather conditions; which primarily compels consumers to flip on appliance switches that can provide them comfort.
"Overall growth was due to the continuing increases in one day power sales; higher temperature and humidity," the utility firm has emphasized.
The growth driver remains to be the commercial sector; posting 6.0-percent increase in sales growth for the period. Coming in next are the transport services sub-segment; growing by an enormous 30.4-percent; and followed by retail with 25.1-percent sales surge hike; and real estate at 2.8percent moderate hike.
Meralco has also noted impressive growth in its industrial sales at 5.4-percent; and taken as main drivers are those in paper, plastic manufacturing and electrical machinery.
It was also this time that sales to residential customers reversed the precipitous decline it had last year; after growing by 1.32 -percent in the first quarter.
The D and E sub-segment (or those consuming 1 to 150 kilowatt hour per month), were seen "leading this group’s aggregate growth by 2.0-percent" over last year’s figure.
Meanwhile, the utility firm noted that there has been increase in generation charges during the period by roughly 12.8-percent to P4.9646 per kWh from P4.4007 per kWh in the same period last year; primarily due to higher cost of procurements from both the National Power Corporation and independent power producers.
"NPC rates were higher in March 2006 due to the approval of a rate increase in May 2005, the increases in the ICERA (incremental currency exchange rate adjustment) and GRAM (generation rate adjustment mechanism) rates and the time-of-use rates," it said.
The utility firm emphasized that the TOU rates of NPC are higher during the dry season or from January to June this year.
On the other hand, higher generation charges from its IPPs are due to lower average dispatch from 79.58-percent in March 2005 to even lower 73.62-percent in March 2006.
posted by philpower @ 8:20 AM,
