Is Meralco’s Power Increase Justifiable? or Simply Corporate Greed at Its Finest

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It looks like the power hike seems to be hurting us consumers even more. According to advocacy groups, Meralco’s power hike has greatly crippled many parts in Luzon. The increase PHP 4.15 per kilowatt-hour is outrageous. Described by many as “corporate greed” does a conspiracy really exists between Meralco?

For those of you who don’t know it yet, Merlaco is controlled by Manuel V. Pangilinan, a businessman who leads Hong Kong-based investor First Pacific Company, with about 113.31 million Meralco shares  through the PLDT Beneficial Trust Fund.

Meralaco’s increase in the energy sector translates into a massive PHP 830 in power bill increase to many households,  which many families are said to use 200 kwh every month.  If you think about it, the power hike is outrageous, and it seems this is the only way that Merlaco is going to repay their 2,700-megawat deficit by buying expensive electricity from Wholesale Electricity Spot Market.

It’s not only the  PHP 4.15 increase, but also additional taxes and service charges. The question still remains, was it really intentional for Meralco to justify their increase just because they are buying expensive electricity? Groups have said that the Malampaya shutdown, has made Meralco a “power-hungry” corporation, as the increase is three times more than the expected.

If you ask yourself, why does Meralco need to buy expensive source of energy from WESM? Let us put this way, if you are Sari2x store vendor, do you really need to buy from S & R to buy basic commodities and sell it to your store at three times the original SRP? Think about it, it is the same as what Meralco is doing. The short term deficient of energy in Luzon does not need expensive purchase and resell it at a higher rate.

Take for the case in Cebu, the shortage of energy due to the Typhoon hit areas where VECO (Visayan Electric Company) a counterpart of Meralco, draws its energy requirement. VECO didn’t have to purchase expensive energy from different suppliers but rather tried to appease its customers by having a rotational brownout 1-2 hours per day. until the situation in Leyte begins to normalize. And it seems no one from the Visayas is complaining about it. It is way better than a permanent increase that could last for months.

Put it this way, why purchase from an expensive company when there are other means of not screwing your customers!

So ask yourself is MERALCO’s increase is justifiable? or is it another money making scheme by Manny Pangilinan to gear up enough funds to win this coming 2016 elections? 

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