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THE government-Meralco war fails to electrify the country because
most of the issues are way above the head of the consumers. Apart
from their concern with rising electricity costs, the people have
difficulty relating to the other issues enveloping the controversy.
One of our columnists, for example, has
commented that the electricity distribution monopoly of the Manila
Electric Co. is “one of the most abstruse and esoteric”
businesses in the Philippines. There is “much fog” in the way
Meralco computes its electricity rates and in the language of the
law that regulates it.
Another reason is that many individuals could
not appreciate how electricity works and how private business and
the government operate to see that is wisely and inexpensively used
and distributed. Ask the man on the street what electricity or
electric power is and it is likely he can’t explain it or may go
to great lengths to describe where it begins and how it powers
appliances.
The average man may just say that electricity
comes from Meralco, flows through wires and cables and enters homes
through wall sockets. Does he have any control over it? Of
course—by turning switches on and off or by limiting or increasing
use.
He relates easier to water (also becoming
costly) because he can see it, touch and hear it—drink, shower
with it, use it for gardening, cooking or washing. He sees when
water is being wasted or stolen. He knows he must turn the tap off
or use it wisely lest his Maynilad or Manila bill throws cold water
on his budget.
Electricity is unlike water
But electricity he cannot see. He knows it’s
flowing around his home and around the community. It’s like a
spirit, but not exactly a guardian angel. He could only appreciate
it when he turns the lights on, uses his electric range or plays
with the radio or TV. He also curses Meralco when a brownout hits
the neighborhood or strands the elevator he is riding in.
He remembers vaguely that in his Science class,
he and his classmates were taught that electricity is a form of
energy used for lighting, heating and powering machines. It could be
natural or man-made. Electric current flows along an electric
circuit. Still, it was a difficult concept to grasp.
But how does a power company like Meralco
compute the cost of electricity? Aye, there’s the rub. If he looks
at his billing statement, he could easily count 22 separate items,
all charged to his pocket. How could a simple form of energy like
electricity be so complex and so expensive? This is what GSIS
President Winston Garcia and the public want to know.
A jolting experience
The power establishment is stacked up against
the consumer. He must navigate his way through a warren of laws,
rules and bureaucracies to appreciate the system. The acronyms will
easily confuse him.
He has to know and understand WESM (wholesale
electricity spot market), NAPOCOR (National Power Corp), ERC (Energy
Regulatory Commission), EPIRA (Electric Power Industry Reform Act),
NTC (National Transmission Corp.), IPPs (independent power
producers) and the JCPC (Joint Congressional Power Commission).
The consumer is advised to learn basic
terminologies peculiar to the business. Why does he have to pay for
“systems loss” or power he didn’t use in the first place? What
is the difference between “generation charge” and
“transmission charge”? In addition to “distribution charge,”
he also pays extra for “supply charge.” Why do
“under-recoveries” and “unbundling” of generation charges
matter?
Where’s Reddy Kilowatt?
At once he pays Meralco for the installation of
an electric meter. Sometimes service is cut off unjustifiably for
alleged nonpayment when the matter had been settled a few days
earlier. When the company restores service, he pays for
“re-installation” fee.
He has other complaints: unannounced brownouts,
road excavations for repairs that take time and that are not
immediately refilled, public power theft that remains unpunished,
transformers that explode, loose wires or cables and wobbly electric
posts.
Meralco stands by its service and record. It
claims it has served the public well for decades. The friendly
mascot Reddy Kilowatt was a household catchword (what has happened
to him)? It is merely collecting for other agencies and shares but a
small part of the income. The last time it raised its rates was in
June 2003.
An electric shock
To tame high electricity costs and reform the
system, the experts suggest immediate and long-term nostrums:
Restructure the Meralco management to recruit
professionals and to reduce the supervisory staff. Remove the 60
percent royalty on natural gas from Palawan. Suspend the VAT on
electricity. Organize a task force on power theft to drive the
robbers out of business. Prevent Meralco from passing on to
consumers a percentage of its systems losses. Predictably, the
Senate will probe Meralco and the other industry players.
Is government takeover of Meralco a solution?
Naah. The government is poor at doing business. A takeover is an
invitation to graft. Allowing the GSIS or any government office to
buy Meralco and run the business will surely send the country an
electric shock.
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