The Manila Electric Co. (Meralco) has rejected notions that its corporate behavior and practice rather than the broad economy as a whole are to blame for such conditions as the country’s supposed inability to pull off large batches of foreign investments.
This surfaced in the wake of legislative discussions on private investments, power rates and related topics under which Meralco’s services were subjected to greater scrutiny.
Worse, there have been discussions to split Meralco’s franchise area into three units presumably to arrive at certain efficiencies or advantage working to benefit the economy as a whole.
Some legislators have propounded that Meralco rates as presently structured are partly to blame for why the Philippines continues to attract the barest of foreign investor interest relative to the amount of foreign interest foreign fund managers extends to the country’s neighbors.
But Meralco spokesperson and vice president for corporate communications Joe Zaldarriaga said the company’s rates and service record are some of the best in the business and that the bulk or 80 percent of its customer charges are actually pass-through and promptly remitted direct to the power generation companies, the transmission grid operator and to the government for the tax the business had been tasked to collect.
Zaldarriaga pointed out for instance that Meralco’s distribution charge, the only rate component that directly goes to the company, has not moved since August 2022 when the rate was reduced to P0.0360 per kilowatt hour to benefit a typical residential customer.
“Meralco is also only one of several distribution utilities and electric cooperatives operating in the country. We have strictly abided by the rules and guidelines of our franchise as operations are heavily regulated by the Energy Regulatory Commission,” Zaldarriaga said.
He argued that electricity rates in the Philippines reflect the true cost of the commodity unlike in other countries some of whose service providers are heavily subsidized by their governments.
According to Meralco, a recent study conducted by the International Energy Consultants adjudged Meralco rates as fair and reasonable and that Philippine power prices, while comparatively more expensive than its neighbors is best explained by subsidies provided by their governments.
“In terms of quality, Meralco has consistently delivered stable and reliable service and performed well within regulatory standards. Meralco also continuously invests in projects and new technologies that would improve and strengthen its distribution network to better respond to the needs of our 7.8 million customers,” Zaldarriaga said.
