MANILA – Meralco said its consolidated core net income rose by 10 percent in 2022 to P27.1 billion as energy sales volumes exceeded pre-pandemic levels.
The utility firm said its power generation business also booked significant earnings from its gas-fired power plant in Singapore.
“Consolidated revenues were at P426.5 billion, 34 percent higher than P318.5 billion in 2021 mainly due to higher pass-through charges,” the company said.
Meralco said its average retail rate in 2022 increased by 16 percent to P9.52 per kWh from P8.24 per kWh amid higher fuel prices, spot market prices, and the peso’s depreciation last year. The peso fell by about 11 percent last year to an average of 54.48 versus the US dollar from 49.25 in 2021, Meralco said.
It also noted that the generation charge, which accounted for about 66 percent of the total retail rate, went up by 32 percent, as the purchased power cost increased by 43 percent to P322.6 billion “reflecting the unprecedented upward movements in prices of fuel supply sources.”
Meanwhile, the transmission charge, comprising 9 percent of the retail rate, increased by 19 percent.
“On the other hand, Meralco’s average distribution charge of P0.85 per kWh, which accounted for 9 percent of the retail rate, dropped by 41 percent following the implementation of DRTU (distribution rate true-up) refunds which averaged P0.67 per kWh during the year,” the power distributor said.
It said that of the 48.3 billion refunds ordered by the Energy Regulatory Commission, P38.8 billion or 81 percent have already been refunded to customers as of end-December.
The entire refund amount is expected to be settled by May 2023.
“Our service area in aggregate accounts for about half of the country’s gross domestic product, which grew 7.6 percent last year, its fastest in four decades. This highlights the crucial role we play in powering the continued recovery efforts of our country, especially with persisting challenges that include soaring inflation and anticipated global slowdown this year,” said Meralco chairman Manuel V. Pangilinan.