Lawmaker: Meralco should lower rates
A LAWMAKER questioned the Manila Electric Co. (Meralco) for not offering cheap power rates to residential consumers just like what small electric cooperatives in the provinces did.
In a recent public hearing by the House Committee on Legislative Franchises, Philippine Rural Electric Cooperative Association (Philreca) Party-list Rep. Presley de Jesus asked why the power firm has not lowered its rates.
«Indeed, we in the power bloc, this is what we're focused on, the energy sector, so in economies of scale, just for comparison, we have electric cooperatives offering residential rates as low as P6.50 per kilowatt hour,» de Jesus said.
He cited cooperatives such as Pampanga 2, Camarines Sur 1, Bataan Peninsula, Surigao del Sur 1 and Nueva Ecija 1 Electric Cooperatives, whose rates range from P6.50 to P8 per kilowatt hour.
«If we compare to Meralco, these cooperatives are so small. Meralco holds essentially a mega franchise with the largest captive market,» de Jesus said.
Meralco charges P12 per kilowatt hour for residential customers.
«With a wider customer base, we should be seeing a downward trend in electricity rates. The economies of scale normally lead to lower cost as the customer pays growth,» de Jesus said.
He added that since Meralco is so big, «the economies of scale should be when you purchase big and your demand is big, your rates should be lower,» the lawmaker said.
He said the Energy Regulatory Commission should investigate Meralco's unusual rates.
De Jesus added that another concerning report was the possibility of Meralco expanding its franchise area and encroaching on localities that are served by smaller utilities.
«Meralco is being accused of monopolistic practices,» he added, citing information from Laguna Rep. Dan Fernandez.
De Jesus urged the House should review Meralco's franchise and its possible split into three for better service and lower rates.
«I think it is imperative for us to review the grant of franchise to Meralco and open up the possibility of subdividing their franchise area,» de Jesus said.
