Meralco rates among most competitive in the Philippines
By Alena Mae S. Flores – November 14, 2023, 4:56 pm
from manilastandard.net
Power retailer Manila Electric Co. (Meralco) said Tuesday its electricity rates and service quality are among the most competitive in the Philippines.
Meralco spokesperson Joe Zaldarriaga said the company has always been transparent about its rates and causes of adjustments.
He said about 80 percent of the company’s rates are pass-through charges that are remitted directly to power generation companies, transmission grid operator and to the government for taxes.
“Meralco is also only one of several DUs and ECs operating in the country. We have strictly abided by the rules and guidelines of our franchise as operations are heavily regulated by the ERC,” Zaldarriaga said.
Zaldarriaga said electricity rates in the Philippines reflect the true cost of electricity, unlike that of other countries’ which are heavily subsidized by their governments.
He cited the latest study of International Energy Consultants which showed that Meralco rates are fair and reasonable and noted that Philippine power prices are higher compared to its neighbor countries due to subsidies provided by their governments.
Meralco’s distribution charge, on the other hand, has not moved since the P0.0360-per-kWh reduction for a typical residential customer in August 2022.
“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.
Meralco issued the statement to clarify the concerns raised by ACT-Teachers Rep. France Castro and Laguna 1st District Rep. Ann Matibag.
The two lawmakers supported proposals to review and split into three Meralco’s franchise, describing it as “too big.”
The proposal was first made by Laguna Rep. Dan Fernandez in a privilege speech, urging the House of Representatives to conduct a review of the mega-franchise and divide it into three.
Zaldarriaga said Meralco complies with all government regulations and said Fernandez’s speech contained factual errors and was “riddled with inconsistencies.” It also denied behaving as a monopoly.
