MERALCO RATES ONE OF HIGHEST IN ASIA

       MERALCO RATES ONE OF HIGHEST IN ASIA

                                                                                                Ten Reasons Why

                                                                                                   By Bernie Lopez

01

The government, as part shareholder of Meralco (Manila Electric Company, the largest power distributor in the Philippines), is guilty of conflict of interest. It will approve rate increases for its own profits. Government equity in utilities should be banned.

02

Incumbent politicians are beholdened to the power sector as contributors to campaign funds. Malacanang defended the recent Meralco rate increases. Covert campaign contributions from oligarchs and their corporations should be expose in the media.

03

There is an insidious partnership between local oligarchs who control the power industry and the World Bank–USAID–ADB-IMF consortium (the US-controlled international banking system) to control and dominate the Philippine economy. The power sector plays a critical role in the economy. Even Malacanang is a puppet to this partnership. It’s an all-powerful global force.

04

The consortium authored the EPIRA (the power regulatory law) through proteges, namely, solons, some of whom were power oligarchs, and USAID-funded study groups. In the guise of breaking up the power monopoly, EPIRA achieved the exact opposite, strengthening the  monopoly (oligopoly). A clear example is the latest rate increase. The WESM rate increased almost ten fold overnight on the pretext of the Malampaya shutdown just before Meralco purchased power. Meralco knew about the shutdown months before. Congress is presently investigating if power generators and distributors are in collusion to increase rates.

05

The Energy Regulatory Commission (ERC) has consistently approved rate increases which the Supreme Court has consistently reversed in favor of consumers. The latest increase is in fact a violation of the EPIRA because it was automatic. There is no such thing as ‘automatic increase’ in the law. This requires approval and consultation first. Meralco and ERC consistently deny their partnership.

06

The modus operandi of Meralco to increase rates is to pile up one application with the ERC after another, in the hope statistically even 70% are approved. These applications are so complex finance- and accounting-wise that no layman can understand the needles in the haystack to be able to launch a protest. Before the latest increase effective January, there was a previous one approved for November. Meralco has a team of expensive lawyers to manipulate and maneuver around the law. They know consumers cannot afford to much their legal service power.

07

Meralco illegally imposed an ERC-approved fee to cover future potential default on payments amounting to a staggering P26 billion, whose interest, protestors say, belong to consumers, not to Meralco. If you are a low-to-medium consumer of about of 200 plus kilowatt hours per month, your new bill would mean plus P200 for default security payments (this is not consumption but insurance), and another P500, for the Malampaya shutdown increase. So your bill is jumping from P2,000 plus to P3,000 plus, an increase of 30% beyond the capability of the middle class. Meralco is bleeding the nation dry.

08

Meralco is not afraid of protests for two reasons, 1) it controls the media and has a PR budget of millions per month. They can come out with articles justifying increase and suppress articles saying these are unjust; 2) the threat of electricity cut-off is a powerful force that make consumers helpless. If they opt to not pay for unjust rates in protest, their electricity will be cut off. They have no choice and Meralco knows it.

09

The European, American, and Japanese Chambers of Commerce report that Meralco has one of the highest rates in the whole of Asia, higher than Tokyo’s, strangling their businesses. Some are threatening to move abroad, and indeed some have.

10

The powerful energy oligarchy is complex and has tentacles reaching out to a labyrinth of other sectors such as mining, which uses up a lot of power. It has agents in Malacanang, including the all powerful MICC, which ultimately approves all mining applications. There are oligarchs in the Cabinet, Senate, Lower House, Chambers of Commerce, etc.

 

How do you kill the oppressive energy oligarchy? You don’t and you can’t unless you want to be a martyr. The only thing that can kill the oligarchy is people power, but that is a tall order. People power rises only in crisis situations like EDSA. When power rates have increased three fold, maybe there is a chance. The latest increase is churning up a tsunami which is still in its infancy. We are slaves of the oligarchy. Greed is the name of their game.
My Dear Bernie,

             I only have one simple question for you: Have you ever personally met or do you know of an atheist who is among those in the powerful energy oligarchy? As a matter of fact, all those criminals in the Meralco enterprise all believe and love God as
God has always forgiven them of their sins, and crimes, greed, graft, and corruption.
             Do you understand now why in our sick and corrupt
society, I am proud to identify myself as an atheist?

                                                  With all good wishes,

                                                         Poch Suzara