The People have Spoken: Survey Finds 84% of Adults in Metro-Manila Not Satisfied with Meralco’s rate.
David Celestra Tan, MSK
26 August 2018
The heavens are probably feeling sorry for the Meralco consumers already that it sent an answer to Meralco’s “lower rate” propaganda in the form of a Pulse Asia Research survey rebuking Meralco’s publicity claims just a few days earlier.
Pulse Asia Research director Ana Maria Tabunda said on Monday in a press conference that 84 percent of the respondents in Metro Manila were not pleased with the cost of electricity provided by the Manila Electric Company (Meralco).
The survey results were presented at a press conference hosted by the Power for People coalition or P4P, a network of civil society organizations, cooperatives, consumers, and communities lobbying for clean, safe and affordable energy.
Just days before on August 18, 2018 Meralco boasted in a multi-media press release that its rates are among the lowest in Asia, claiming a reduction of 18.2% from its rates in 2016.
“Over the past six years, Meralco’s customers have been among the few in the world that have enjoyed rate decreases, versus substantial increases in that of some other neighboring countries, an international study showed,” Meralco Spokesperson Joe Zaldarriaga told GMA News Online.
Citing data from Australian consulting firm International Energy Consultants (IEC), Zaldarriaga said “Meralco has been reducing electricity prices since January 2016”.
“Meralco’s average tariff (excluding VAT) in US cents per kWh has declined 4 percent since January 2016 versus an average increase of 12 percent across 46 countries covered by the survey,” he said.
“As further shown by the IEC study, Meralco rates rank as one of the cheapest in Asia excluding other markets’ subsidies and the use of nuclear power generation,” Zaldarriaga noted.
While the Meralco drumbeaters refer to them as third party studies (read independent and unbiased) the IEC studies are actually paid for by Meralco and done every two years evidently to tell Filipinos that its rates are fair and reasonable and that if other Asian countries like Thailand, Malaysia, and Indonesia have lower rates it is because those governments are subsidizing their power. Clearly, it is part of Meralco’s overall public disinformation strategy.
Affordability for Meralco consumers and Filipinos are critical in judging fair and reasonableness of its electric rates. The measure is not whether the Meralco consumers are paying the 6th lowest rate in Asia, but whether we can afford the Meralco rates compared to our per capita income?
MSK research shows that Japans residential rate is US$0.2332 per kwh vs Meralco’s claimed US$0.1465. but Japans per capita income is $40,849 compared to the Filipinos $3,095. In other words, the Japanese pay for electricity at 160% of what Manilans pay but their income is 1,320% higher than us. Hong Kong reportedly pays US$0.1510 per kwh, 103% of what we pay Meralco but their per capita income is 1,577% higher than us!
Without making the generation rates truly competitive and without eliminating the rate setting anomaly of the PBR, Meralco’s telling the Filipino people that its rates are no longer the highest in Asia, is like saying, “we are no longer abusing as much, so our rates are okey and you consumers should be happy”. Granting, are we supposed to feel better that Meralco rates are not as abusive as they used to be?
The God-sent Pulse Asia Survey done on June 15-21 on 1,800 respondents, showed how Meralco consumers really feel about the rates. A full 84% are dissatisfied. In fact they are so dissatisfied that 88% are in favor of having an alternative electric service provider or distribution utility. The consumer sentiments are that bad and they are that desperate that they now want another option!
The people had spoken but it is not really to Meralco that they are talking to. They are sending the message to the Energy Regulatory Commission whose job it is to assure against these abuses. It is the ERC that has the power to correct the serious anomalies in its rate setting methodologies. It is the ERC that appear to be pursuing the approval of the seven (7) midnight contracts that evaded the CSP rules. Let’s pray ERC under new Chair Atty. Agnes Devanadera will start hearing and heading the pleas of the consumers.
As far as Meralco is concerned, maybe the message they should be hearing is that 88% of its consumers are now wishing for an alternative supplier of electricity. Meralco might feel they are winning the high rate and high profit battle now. But they could be headed to losing the war.
The People have spoken….. and thank you Heavens!
Matuwid na Singil sa Kuryente Consumer Alliance Inc.
matuwid.org
david.mskorg@yahoo.com.ph
