As energy consumption declines, Visayan Electric sees revenue drop by 11.96%

POWER USE. The enhanced community quarantine, which has shut down most businesses in Cebu since late March this year, was crippling economic activities, including energy consumption by commercial and industrial users. (Sunstar file)

VISAIAN Electric, the country’s second-largest electricity distributor, saw its net income rise 9.18% to 2.26 billion pesos in 2019, but the company expects revenue to fall this year due to the Covid-19 pandemic.

Its revenue in 2019 reached 24.42 billion pesos, up from 23.34 billion pesos in 2018, Visayan Electric Chairman and CEO Raul Lucero told the virtual shareholder meeting of the company on Tuesday, May 19, 2020.

But the company’s revenue this year is expected to fall by 11.96% to 21.5 billion pesos, as energy consumption by commercial and industrial users declines.

In April 2020 alone, the company’s energy sales fell by 25.40%, due to a massive drop in consumption by its commercial and industrial users due to the enhanced community quarantine (ECQ) .

The ECQ has shut down most businesses in Cebu since late March this year, crippling economic activities.

Lucero said the company sold a total of 3,501 gigawatt hours (GWh) in 2019, up 10.82% from 3,109 GWh in 2018.

In 2019, the Aboitiz Group-controlled electricity distribution company served a total of 450,087 customers – residential, business and industrial – in the cities of Cebu, Mandaue, Talisay, Naga and the municipalities of Consolacion, Liloan, Minglanilla and San Fernando.

Connections between its customer categories increased by 2.8% last year; streetlights by 4.43%; households by 2.97%; business customers by 1.13%; and industrial by 4.72 percent.

The company’s operational costs also fell from 21.28 billion pesos in 2018 to 22.16 billion pesos last year.

Peak demand was recorded in October 2019 at 601 megawatts.

Visayan Electric’s average tariffs per kilowatt-hour (kWh) were P10.14 for street lights, P11.80 for residential users, P11.34 for commercial users and P9 for industrial users.

The company expects kWh sales to fall 9.07% this year to 3,183 GWh.

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