The Philippine Online Chronicles

Households consuming a monthly average of 200 kilowatt-hours (kWh) can expect a P64 cut in December bills, as the Manila Electric Co. (Meralco) announced a reduction of P0.32 per kWh Monday.

Meralco said that the charge decrease was due to cheaper power purchased at the Wholesale Electricity Spot Market (WESM). The WESM can be thought of as the stock exchange for the energy sector, where power is traded and sold like regular commodities. It was created upon the signing of Republic Act 9136, or Electric Power Industry Reform Act (EPIRA) law in 2001.

“[E]lectricity in the WESM... went down by P4.99 per kWh this month, WESM prices for the supply month of Novermber were at P6.35 compared to P11.34 of the preceding supply month,” Business World quoted Meralco.

According to the report, this helped offset or ease down higher prices from other suppliers, although Meralco purchases only one-fifth of its power from WESM.

Last month, the utility company had reportedly obtained some 14 percent of its power from the WESM, while it purchased 41 percent from Napocor and 45 percent from independent power producers (IPPs).

Sudden increases in prices of power bought at WESM were said to be the cause of as much as P0.98 Meralco rate increase in last month's billing, according to Manila Bulletin.

In November, Meralco reportedly charged customers P5.2940 per kWh. This month's P0.32 rate reduction brings down per kWh charges to P4.974.

“The generation charge is entirely a pass through charge and does not go to Meralco,” the utility company clarified.

Highest distribution charge

The country's biggest electric distribution firm is said to be imposing its consumers the highest distribution charges in the country, according to Freedom from Debt Coalition (FDC).

In 2007, FDC said that Meralco charges its consumers comparatively higher than the Visayan Electric Company (VECO) and Davao Light and Power Co. by 57.8 percent and 60 percent per kWh, respectively.

The debt coalition cited the power industry experts' claim that the higher charges Meralco impose “doesn't make sense” as the utility company enjoys several financial and operational advantages.

For instance, Meralco is said to have "a larger, more modern and more compact franchise area" and "more customers per kilometer of distribution lines." Therefore, distribution costs per customer “should be a lot less” than the smaller cities of Cebu and Davao.

Moreover, the FDC report states that Meralco has a system demand of 5,400 megawatts, compared with Cebu's 280mw and Davao's 250mw demand.

FDC says that Meralco, which serves Metro Manila and nearby Calabarzon provinces, distributes 70 percent of the country's power consumption.

“Indeed, there are no technical and economic reasons why Meralco's charges for its services should be more expensive. The disparity is just too big,” FDC said.

Love-hate

Alma Anonas-Carpio, a writer at website Dateline Philippines, said that she is willing to pay for good service despite the power rate increase.However, she had found a reason to “hate” Meralco as their area in Makati had experienced power surges which destroyed some of their appliances at home.

“So, (should I) be thankful that my power rate is consistently being jacked up and that they (Meralco) are treating me like a mendicant even as they bleed me dry?” Carpio complained after getting a “snooty” remark when she inquired at the utility firm's office.

The opinion site Amplicate.com conducted a poll on page visitors asking why they "hate" Meralco. Around 91 percent of visitors were said to have expressed their dissatisfaction with the utility company's service.

The said site also features Twitter and Facebook users' irate messages towards Meralco, most expressing outrage with the brownouts and high electric bills.

A certain @Chimes posted a tweet, saying “@meralco we were out for a week, had brownouts everyday and my electric bill bloats by 40%?? WT*?? #meralco #fail #fb”.

“I hate Meralco. Have to live with it, have no choice, which makes me hate it more. Imagine telling my mom today it will increase more,” one @Lenytl tweeted.