WHEN Manila Electric Company (Meralco) replied to a privilege speech by Laguna Rep. Dan Fernandez accusing the utility of being a monopoly, it produced a list of electric cooperatives that it said would show Fernandez’s accusation had no factual basis.

But a close look at the cooperatives would reveal they offer little competition to Meralco.

There would have been no problem having a giant corporation in our midst except that it has virtually full control of electricity supply in the most vital of the Philippines’ economic lifeblood—the National Capital Region.

By policy, utilities distributing electricity are prohibited from sourcing this electricity from power plants that they also own. It’s called conflict-of-interest.

Why this prohibition, you would ask. Because if one firm controls both the distribution and supply of electricity, there’s no stopping it from also controlling prices even if these are not based on reason.

It is not illegal, however.

As Fernandez pointed out, Section 45 of the Epira provided for what he said was a “cross section.”

Meralco denies being a monopoly.

But Fernandez pointed out, provisions in the Epira allowed Meralco to become both power distributor and supplier.

Meralco is able to dictate rates in the absence of a more proactive regulator in the Energy Regulatory Commission (ERC.)

Fernandez is right in demanding answers through an investigation by Congress that could lead to a closeup look at the ‘mega-franchise’.

If it cannot result in lower power rates, then at least let it open the doors for reason and openness to reign.

AUTHOR PROFILE

Tess Lapuz-Lardizabal