“In the first place, it is unfair to charge consumers pass-on amounts for Meralco’s obligation to its suppliers. Secondly, averaging as a basis for billing is unreasonable and grossly and stressfully untransparent. Thirdly, Meralco cannot cite higher power generation cost because there have been no spikes in the global price of oil.”
For most Filipino families, especially the poor and those in the lower income brackets, the rising costs of these basic needs mean tremendous pressure on household budgets.
“During the Congress hearings of House Resolution 566 that we filed, it was revealed that the ERC bent their own rules just to accommodate the Meralco-affiliated power generation companies.”
Power generation companies have been assured their incomes even when they don’t have to deliver much power, as when they themselves are in scheduled shutdown, or when another source is supplying energy to the distributors.
“ERC is subjecting consumers once again to the presumably overpriced negotiated prices between Meralco and its affiliated generation companies.”
‘Few large private corporations control both the demand and supply of electricity for sale to consumers.’
Based on world market trends, fuel energy available to power producers now cost more than 50-percent lower. As such, the Malampaya shutdown “clearly should not result to additional costs, and thus, (there is) no basis for any power rate hike.”
“The plunge in global oil prices warrants a big-time rollback in power rates, not a big-time rate hike. The fact that power rates in the country continue to increase despite the drop in global oil prices since June 2014 deserves to be investigated. – KMU”
By BENJIE OLIVEROS Bulatlat perspective Privatization, by whatever name – Build-Operate-Transfer or Public-Private Partnerships – was touted to be the solution to the inefficient, monopolistic management by government of public utilities and services. It was supposed to be the opposite of how the dictator Marcos monopolized and profited from basic utilities such as electricity, water,…
“Meralco’s core net income yielded rates of return on equity of 22 percent and 26 percent in 2011 and 2012, respectively— way in excess of the 12 percent reasonable rate of return determined by the Supreme Court.” – Marcelo Tecson, former financial and management service chief of the Department of Energy
‘Meralco TV ads are self-serving…’