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A former congressman, Infrawatch Convenor Terry Ridon, is calling on lawmakers in the country to help explain to Filipinos the true reason why local power rates are costly.

This came in the wake of a proposal in the House of Representatives to split the franchise of power distribution giant, Manila Electric Company (Meralco), Inc. amid allegations of overcharging against the company.

Infrawatch PH says that such proposal disregards 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," said Ridon, a former representative of Kabataan Party-list.

"Unlike many of our neighbors, our rates are not subsidized by our government and therefore reflect the real cost of electricity,” Ridon pointed out.

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https://mb.com.ph/2023/11/12/these-2-lady-solons-think-proposed-meralco-franchise-split-makes-sense


Echoing statements from the energy sector, the group said that the bulk of electricity rates go to power generation, which is the actual cost of electricity from various sources like coal, gas and renewable energy.

As per Meralco, about 80 percent of electricity rates are pass-through charges, meaning they are remitted directly to power generation companies, transmission grid operator, and to the government for taxes.

Meralco's distribution charge, on the other hand, has neither increased nor decreased since its last 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.

“It would be beneficial to even more consumers to look at other parts of the country that are often overlooked. We should work together instead in resolving the perennial problems in the energy sector,” Ridon concluded.