• Electricity prices under Aquino the highest ever

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    If  containing electricity prices—which not only affects the country’s investment attractiveness but also the lower and middle classes’ well-being—were a gauge of stewardship, President Aquino’s administration is a failure.

    There may or may not be a cartel in our electricity sector. If there is, it certainly has run wild under this administration.

    Never has there been a generation cost of P9.11 per kilowatt-hour (kwh). This is what Meralco claims it paid for the power it purchased in November, because it had to buy a lot from the Wholesale Electricity Spot Market (WESM), which caused the shocking jump in consumers’ electricity bills for December.

    That’s 60 percent higher than the P5.67/kwh generation charge in October. To mute public protest over the impact of a P9.11/kwh generation cost, the Energy Regulatory Commission ordered Meralco to instead recover P7.66 in December and the rest in January and February.

    Meralco claims that it had to buy power from the WESM as its regular power providers couldn’t deliver the required electricity due to their maintenance shutdown. Because the Malampaya facility also shut down for maintenance, other firms also didn’t have the natural-gas fuel to run their generators to produce power for Meralco. (What Meralco doesn’t reveal though is whether the firms its major owners own supplied it with the expensive power through the WESM.)

    An analogy would be if cable Internet service providers shut down, and you had to rely on the more expensive cell-phone-based 3G or LTE to connect with the Internet. And the analogy is perfect since both Globe and Smart have cable Internet as well as broadband services. If this ever happened, and you had to pay P1,000 a day to get online, wouldn’t you suspect a cartel conspiracy?

    But I doubt very much though if Congress or Justice Secretary Lilia de Lima would really find cartelized collusion, as they have announced they would.

    The generation cost accounts for an average of 51 to 57 percent of your bill, depending on how much kilowatt-hours you consume. The rest consist mainly of the charges for transmission (from the generator to Meralco) and distribution (Meralco to you), some VAT, and other strange charges. Five to seven percent of your bill is euphemistically called “system losses” which represents the cost of the electricity lost due to Meralco’s engineering boo-boos and to the poor who are unable to buy electricity and just pilfer it.

    Check for yourself how much your hit will be in the following table, based on information on Meralco’s website. From my own bills though, the firm’s figures are usually are underestimated. Add 15 percent to the Meralco figures so you’d know how much to save to pay your electricity bill this month.

    bills nov and dec

    A spike in generation costs had occurred once before, in April 2010, and for exactly the same reasons. But the increase amounted to only P6.8/kwh, one third less than the current jump.

    But that precisely reflects this administration’s impotency in containing electricity costs. Or rather, is it too helpful to the magnates who control the electricity industry?

    While electricity supply in the country has increased from 62 terrawatt hours in 2007 to 73 TWh this year, Meralco’s monthly generation cost — which, on the average accounts for 52.3 percent of a consumer’s bill — averaged P4.64/kwh from July 2007 (the oldest data available at the firm’s website) to June 2010, or under President Gloria Arroyo’s watch.

    final 4 for powerIn contrast, Meralco’s monthly generation cost during Aquino’s term so far averaged P5.49/kwh or 18 percent more. This cost is not only entirely passed on to consumers. Because it bloats the base on which such charges as transmission, distribution, and even taxes ware calculated, consumers’ final bills are increased much more.

    The line chart below clearly shows that during Arroyo’s term, generation costs had, except for a few instances, hovered much lower than the comparable months during Aquino’s administration.

    final3 power

    What does this difference in generation costs mean for us? A lot of pesos, as is evident in the following table, which again since it is a Meralco table, an underestimation.

    bills arroyo and aquino

    It isn’t cheap even for us in the low-middle classes to have an inutile government.

    tiglao.manilatimes@gmail.com
    www.rigobertotiglao.com and www.trigger.ph

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    34 Comments

    1. Naniniwala na nga ako ngayon na totoo yung psychological report kay Noynoy noong 2010… hayan kitang-kita na ang ebidensiya…

      MIRIAM 2016, madam senator, please rescue us….will you?

    2. Bonifacio Bangayan Claudio on

      Hindi ako maka-arroyo, ni hindi rin maka-abnoy… Maka-“bayan” po ang tawag mga bumabatikos sa gawi ng mga namumuno sa gobyerno na animo’y mga baboy na naglulubalob sa mala-putik na pamumulitiko at “laissez-faire” sa mga kapitalistang negosyante na hantarang pagtatakwil sa karapatan at kagalingan ng mga nagdurusa at kapus-palad na mga anak-pawis ng ating Inang Bayan… Hanapin sa internet ang kasabihang “My loyalty to my party ends when my loyalty to my ‘country’ begins”… Tila ba nagsisimula ng bumaklas sa kamalian ang ilang congresista at senador, ‘di ba?! Hale, bira… Bayan munaaaaa !!! Yahoooooooooooooo !!!

    3. blackbeard's ghost on

      Mr Tiglao why is your reporting ever since been a propaganda for Gloria macapagal Arroyo on how we were better off during her incumbency than this president? Why do you fail to acknowledge that it was during her presidency that nationwide corruption on all levels had been instituted. A Georgetown graduate that used her economics background to enrich herself and her family. A husband in Mike Arroyo that has dipped his hands in anything that would make them money including the money meant for the poor farmers. Why are you advocating for the Vermont of the society and lashing at president who is trying to right the ship. You sir are not a worthy newsman but a mere propagandist who is willing to sell his soul for a buck.

    4. Insulate yourselves agains the evr climbing cost of electricity and instal solar panels on your roof.
      Generate your own power……. bugger Meralco !!

    5. Alphaomega Betachi on

      Tanungin dapat ang Meralco…”Malulugi ba sila kung di itataas ng electricity rate?” Kung malulugi sila eh di isara na lang nila kompanya o kaya naman ibenta na nila!!! Pero di nila gagawin yun dahil MALAKI nga ang kinikita ng business na monopolyado nila. Ganito lang yan ang katuwiran ng Meralco sa konsyumer…”lkung ayaw mo, eh di magahanap ka ng kuryente mo sa iba!!!”

    6. This is what we got, electing a president who did not or has no aspiration to be President.

      This is what we got from electing a president whose votes comes only from “Sympathy Votes” from his mother.

      This is what we got because of our anger from President Arroyo’s failure to curb corruption. There is more corruption now than during any past administration. There is a better candidate for President (Nephew of Danding Cojuangco – Gibo) but we ignore him because of Gloria.

      This is what we got for electing a candidate whose mental stability was questioned.

      This is what we got a “Failure Administration”.

      Sisihin ang sarili natin. Two and a half more years of incompetence and failure.

      • So we better suffer for two more years and wait until this Senyor Simyon is gone or there has got something to be done now?

    7. Failing his bosses will be Aquino’s defining legacy. The only reason the economy is good is because of the strong fundamentals initiated by PGMA. We will remember Abnoy for wholesale corruption, HK hostage debacle, Yolanda, Zamboanga crisis and hopefully, impeachement or coup, and imprisonment.

    8. Now we have some thing that the administration can show for. Well, sort of. The hallmarks of this administration: Ineptness, incompetence, corruption and bribery, daang baluktot, relief good hoarding and resale, inaccurate counting of Yolanda fatalities but most important of all the creation of disasters from the Yolanda disaster.

    9. One way to gain popularity is to oppose the government and this monkey is doing a good job. I still have faith within this government cause I am a pro Filipino.

    10. Romeo M. Menorca on

      I hope some critics of this administration will cease comparing or likening how Mr. Aquino and his boys and girls run the affairs of the government with that of a student council. I was once the head of our student council and record would show that we in the council were effective and inspiring leaders, we were conversant of basic management practice, we knew how to plan well and execute the same. Also we were not arrogant and ill – mannered and we used pleasant words and expressions instead of vulgar declarations. Lastly during our days in power (campus politics) we were not vindictive against our “political foes”. We were the leaders not only of our supporters during the campaign but of the entire campus community.

      I call on members of student councils of today – let your sentiments be heard – you are the potential and better leaders of tomorrow.

      • You seem fit to be a government official, try running for a president and see how it is to run cabinet members and rogue officials and all the responsibilities that goes with being a president. For now all you can do is criticize the government joining threads in this type of articles, this administration is not insensitive and I still believe is working to uplift Every citizen of this country. Show me a better president that could take his place and someone that could truly turn us around to a first world country in 3 years, until then it is every filipinos responsibility to help this country be a better place to live in and not rely in the government.

    11. Romeo M. Menorca on

      I used to be a planning manager in a multi-national company – and being primarily responsible in planning (short/medium/long plans) I knew the critical role potential problem analysis played as well as the importance of contingency planning. The efficient planning and execution input is one key or major factor for a productive business operation.

      Even in our personal life or concerns planning is a must for a less problematic and worry – free existence. However, please don’t get me wrong. One does not have to be a planning manager for his or her personal life to be productive and worry – free. And the government is NOT exempted to do a planning job.

      I can recite a litany of bad incidents that happened to our country and people recently due to either bad planning or worst, no planning at all. Let’s take the most recent horrifying incident to prove the point: the very sharp hike in power increase. Is the government not aware that Malampaya has “scheduled maintenance” work? Do people in the government not aware that Malampaya’s “regular” maintenance work would result in a problem? They will claim they are aware or in-the-know, so they have a solution – investigate the reason for the rate increase. What? As in – investigate why so many people died in Samar and Leyte due to typhoon.

      It is said that six years is short for a good president and too long for a bad president. Three years have passed under this administration and we are in for another very long three years under this administration headed by Mr. Aquino.

      • Please do come and retire and even invest here. If you have money you will enjoy being in the Philippines. Your investment in Meralco will earn more than bank interest. And while enjoying more fun in the Philippines, because you are a man with a good conscience, you can also help reform this country.
        So, don’t change your mind, please.

        C. Malifier
        Marikina City

    12. “Kapag walang corrupt walang mahirap” at matuwid na daan. These were the
      words of abnoy during the campaign. Dali dali naman kumagat ang mga filipinos.
      Pero anong nangyayari ngayon? PDAP and DAP. Saan nanggaling ang isinuhol
      sa mga buwaya sa kongreso para bumoto sa impeachment ni Corona at para
      maipasa ang reproductive bill? Sino ba ang naka photo-op kay Napoles? Ang
      ganda pa naman ang ngiti ni abnoy at drilon sa picture nila kay Napoles.Mismong
      Supreme Court ay ideneclare na unconstitutional ang PDAP. Yon ba ang kong
      walang corrupt walang mahirap at matuwid na daan. This is the worst administration
      ever. This abnoy no longer respect the law. Marcos even allowed his father
      to go abroad for medical treatment. How about abnoy? Mas mahalaga sa kanya
      ang pagganti sa mga kalaban niya. He waste his time in going after his enemies.
      He take advantage of his position in getting back at his enemies. Ginagamit niya
      ang pera ng bayan sa pagganti sa mga kalaban niya sa politika. Anyway, what
      can we expect from a person that was found to be suffering from mental
      disorder. What can we expect from a person who is a sinto sinto in the first place?

    13. For 3 years in his tenure, the president does not have flood control plan for MetroManila and neighboring provinces, If he did not cancel GMA’s Laguna De Bay project we won’t be suffering when it rains. That project had been budgeted and about to start.

      • Any GMA initiated project that is good for the country is bad for Noy2. If he will not put a stop to them, there will be events that he can put the blame on her.

      • Kayo naman naniniwala kayo kay mr. tiglao na maka-gma. Mali-mali naman ang sinsabi nya. Do-on kayo dapat maniwal kay sirs lacierda, coloma, carandang (ay wala na pala; nag greener pasture daw) at isama na natin si maam valte. Si tiglao ay forked-tongue. Sila sirs at maam, pork tongue (no (f)un intended ha?) lahat na maka-gma ay mali; kami maka-pnoy and laging tama. Di ba manolo quezon?

    14. “Yolanda will define his presidency”! _ _ Christian Amanpour
      i disagree, it will be ELECTRICITY!

    15. Please take note that an Ayala controlled company pilipinas shell owns majority of malampaya. Pnoy will never touch it just like what he did in serendra blast. Weather weather lang yan

    16. What do you expect? Noynoy is a puppet of the rich. Its his job to make them richer. Never mind they take money from the poor.

    17. The elite that control our country will continue to have fun bi natter how expensive it becomes to live here.

    18. Bakit hindi binanabantayan ni Noynoy ang mga sinisingil sa electricity, tubig, at gasolina? Dahil ba ito ay hindi niya priority? Dahil ba hindi niya alam na tungkulin niya bilang pangulo na protektahan ang kanyang boss sa mataas na singil sa electricity, tubig,at gasolina? Dahil ba busy siya at bahala ang Diyos sa atin? Sabagay, ano ba aasahan natin kay Noynoy na kumandidato noon 2010 na walang plataporma. Kaya ang nangyayari pag dumating na ang krisis ay saka niya haharapin ang problema. Pero pansinin natin na haharapin niya lamang ang problema dahil binabatikos na siya ng boss niya at galit at nagtataka siya pa kung bakit binabatikos siya.

      • Darewin Ocampo on

        Kasama mga oligarchs sa KKK nya kaya okay lang sa kanya kahit magtaasan na lahat bastwa wag lang sahod.