The largest electricity company in the Philippines, Meralco, stated in its 2025 quarterly report that due to the withdrawal of Chinese offshore gaming operators (POGO), a decrease in tourists, and climate factors, the annual electricity sales are expected to decline by 0.4% to 0.8%, ending the trend of growth over many years. The regions of Pasay and Paranaque have seen a surge in vacant apartments, with the number of completely disconnected units rising from 165,000 to 185,000. High-end apartment prices have plummeted by 70%, and customer flow in business districts has decreased by more than 90%. Despite Meralco maintaining a target of 10% growth in annual net profit, the withdrawal of POGO has triggered a chain reaction that highlights the risks of external dependency in the Philippine economic structure.
Electricity Demand and Vacancy Status
The largest electricity company in the Philippines, Meralco, expects a decline in annual electricity sales of 0.4% to 0.8% in 2025, primarily due to the withdrawal of POGO, a decrease in tourists, and climate impacts. The company's revenue report pointed out that the withdrawal of POGO has significantly impacted the electricity demand in apartments and commercial areas. In the regions of Pasay and Paranaque, the "zero electricity units" increased from 165,000 to 185,000, with an additional 20,000 apartments completely disconnected. Electricity usage in hotels, malls, and office buildings has also dropped to new lows post-pandemic.
Real Estate and Commercial Impact
The withdrawal of POGO has severely affected the high-end apartment market in Manila, with prices in the Pasay area falling by 70%, from 30,000 RMB per square meter to 8,000 to 10,000 RMB, and the vacancy rate exceeding 50%. Industries that relied on POGO, such as dining, retail, and outsourcing, have seen customer flow decrease by more than 90%, drastically reducing the vitality of business districts. The decrease in electricity demand reflects an overall slowdown in economic activity, highlighting the industry's excessive dependence on the gaming sector.
Corporate Performance and Economic Structure Risks
Meralco maintains its target for a 10% increase in annual net profit (approximately 50 billion pesos), and its subsidiary Meralco PowerGen's electricity sales reached 20,226 GWh in the first nine months, a 75% increase year-on-year, but this is only a partial highlight. The chain reaction caused by the withdrawal of POGO extends far beyond the scope of electricity, exposing the singularity and external vulnerability of the Philippine economic structure. Energy analysts point out that the core issue is not a lack of power supply, but a collapse on the demand side, and in the future, a sustainable growth path must be sought to reduce external dependencies.
