Look into context of high power rates, solons urged
INFRAWATCH PH has called on Philippine lawmakers to help in enlightening the public by contextualizing the reason behind the higher power rates in the country.
This came in the wake of calls to split the franchise of Manila Electric Company (Meralco) which had been reiterated by several lawmakers, disregarding the very nature of the power rates–not just of MERALCO but also many other distribution utilities and electric cooperatives in the country.
“The conversations about the country’s electricity rates have been going on for so long and yet many of our decision-makers fail to recognize the real reason behind the higher rates compared to other countries.
Unlike many of our neighbors, our rates are not subsidized by our government and therefore reflect the real cost of electricity,” Infrawatch Convenor Terry Ridon said.
Infrawatch emphasized what the energy industry has been constantly communicating to the public–that bulk of the electricity rates go to power generation, which is the actual cost of electricity from various sources like coal, gas and renewable energy.
According to the latest information from MERALCO, about 80% of it are pass-through charges, meaning they are remitted directly to power generation companies, transmission grid operators and to the government for taxes.
Its distribution charge, on the other hand, has not increased or decreased since its reduction in August 2022.
Beyond the rates, Infrawatch also asked lawmakers to look into the persisting problem of service quality in many parts of the country.
