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Further, distribution charges increased by
2.8% to P33.37bn.
Meralco’s reported net income is gloomier,
down 43% to P6.8bn due to its share in
the P2.7-billion investment impairment of
Singapore-based PacificLight Power Pte Ltd.
in the first quarter.
In a separate statement, Meralco Chairman
Manuel V Pangilinan claimed that “Meralco
performed quite well,” despite the challenges
it faced in the period, such as the limitations
caused by the pandemic-induced lockdown.
He noted the uncertainty caused by the
coronavirus disease 2019 (COVID-19), albeit,
highlighting also “some encouragement” from
the company’s first-half results.
From January to June, Meralco sold a
total of 21,139 gigawatts per hour (GWh) of
electricity, which is 7% lower compared to a
year ago.
Only its residential sale expanded by 14%,
OUTPUT production would have been better than the making up the bulk of its total sales volume at
one reported for FY20 as the economy (gross 38%, as customers use more electricity while
Pakistan’s power domestic product/GDP) was about to enter kept indoors due to quarantine restrictions.
into a growth phase from the stabilisation
generation doubles in June phase.
The power production picked up in June
Power production almost doubled in June (the last month of previous fiscal year) despite DISTRIBUTED ENERGY
2020 compared to March when the Covid-19 the GDP growth being negative 0.38% in
outbreak crippled economic activities and FY20. Siemens seals distributed
brought them to a near halt. The installed capacity in the country
The significant growth in power generation touched 34,157 megawatt (MW) in June 2020 energy deal
indicates that a majority of the factories and compared to 30,590 MW in June 2019.
industries have returned to work from the Siemens has entered investment and
four-month-long lockdown. framework agreements with Berkeley Energy
“Power generation has...almost doubled Commercial Industrial Solutions (BECIS).
(soared 92% in June) from the low recorded PERFORMANCE Together, they will provide customers
in March 2020,” Topline Securities’ analyst access to distributed energy solutions via a
Sunny Kumar said in a brief report on power Meralco core profit down flexible ‘Energy-as-a-Service’ (EaaS) model,
production in the previous fiscal year ended allowing customers in the Asia Pacific market
June 30, 2020. 14% in first half to pay for energy services without the need
Power generation started to decline in for any capital investment. This will address
March 2020 (down 9% to 6,911 gigawatt- MANILA ELECTRIC CO. (Meralco) saw its customers’ energy cost and sustainability
hours/GWh compared to 7,621 GWh in core net income dropped 14% to P10.6bn in challenges.
March 2019) largely due to Covid-19-related the first six months of the year with lower Under the agreements, Siemens’ financing
lockdowns and restrictions, he said while revenues and sales. arm – Siemens Financial Services (SFS) –
citing data from the National Electric Power Its consolidated revenues dwindled 14% becomes a major shareholder in BECIS.
Regulatory Authority (Nepra). to P142.3bn in the period “as a result of the At the same time, Siemens Smart
A similar trend was also witnessed in April combined effect of the 7% decline in sales Infrastructure (SI) will contribute technical
and May 2020 as power generation declined volume and lower pass-through generation expertise from its existing footprint in energy
by 14% and 5% respectively compared to April charges as fuel prices remained low,” said and performance services (EPS) projects to
and May 2019. Meralco’s Chief Financial Officer Betty C. Siy- BECIS, complementing the latter’s experience
On a yearly basis, power production Yap during the company’s first-half earnings in distributed energy generation solutions.
edged up by 1% to 13,288 GWh in June 2020 briefing, Monday. BECIS will act as the investor, developer
compared to 13,157 GWh in June 2019. The company’s electricity revenue, forming and operating partner, holding the assets
“With industries opening up post- 97% of the total, dropped 14% to P138.6bn, on the balance sheet, while SI will be the
Covid-19 lockdown and subsequent pickup mainly due to lower volumes and pass- technology provider.
in economic activity, we expect demand for through charges. EaaS is a business model that allows
power to increase from here forth,” Kumar Revenues from generation and other pass- customers to partner with a solutions provider
added. through charges also decreased by 18.3% to such as BECIS and pay for an energy service
In July-June FY20, electricity generation P105.27bn. Lower generation cost with the over time, without the need for any upfront
dipped by a marginal 1% to 121,867 GWh implementation of new power contracts and capital investment.
compared to 122,708 GWh in FY19. the utility’s force majeure claim from power The long-term asset ownership resides
Had Covid-19 not emerged in early suppliers, among others, led to the lower with the solutions provider in this business
summer months of March-May 2020, the revenue share of this component. model, in addition to the responsibility

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