Meralco loses P73M in Q1

The Manila Electric Co. (Meralco) reported a net loss of P72.8 million for the first quarter of 2002, a dramatic reversal of its P394.4 million net income realized in the same period last year.

The company attributed the loss to a decline in sales volume coupled with higher system losses for the quarter.

But Meralco spokesman Elpi Cuna said that despite its financial difficulties, Meralco has spent more than P1.09 billion for its electric system projects for the first three months of the year.

The P1.09 billion for systems upgrade forms the bulk of the P1.15 billion capital expenditure for the first three months this year. The capex level for the period, however, was lower by 38.2 percent compared to last year’s first quarter capex of P1.86 billion.

"The completion of the electric capital project is part of the company’s continuing efforts to upgrade the electric system in its franchise," Cuna said.

Included in the upgrading of the system during the period under review were: the commissioning of a new 34.5 kilovolt feeder from Sun Valley substation, the splitting of the Marikina-Masinag-Parang 115 kV line and the installation of 13.8 kV substation capacitor banks.

The new 34.5 kV feeder Sun Valley 421 WG costing P28.8 million was commissioned on Feb. 22.

The construction of the new feeder, he said, was the result of the installation of a second 83 MVA (mega volt amphere) power transformer at the substation last Dec. 30, 2000.

Among the customers being served by this circuit are Duty Free Philippines, People’s Air Cargo Phils., Aspac Airfreight Inc., Delbros Inc., Air Speed and Allegro Philippines Asia. These customers are now experiencing better electric service as a result of the completion of this project.

On March 2, 2002 the Marikina-Masinag-Parang, 115 kV was split into Marikina-Masinag line and Masinag-Parang line.

Cuna said this was in connection with the project for the development of Parang substation which was commissioned in December 2001. The project cost stood at P69.2 million. – Donnabelle Gatdula