October 30, 2024 | 9:25pm
MANILA, Philippines — Advocates for clean and affordable energy argue that Meralco’s projected P43-billion profit this year demonstrates the company’s capacity to lower electricity rates.
The Power for People Coalition (P4P) criticized the power distributor for prioritizing profit over alleviating the burden of high electricity bills on households.
“It is about time that this joyride for the energy company is ended by regulators in the form of lower rates for consumers,” P4P Convenor Gerry Arances said in a statement.
Despite a P0.3587 per kWh decrease in Meralco’s power rates for October, households consuming 200 kWh are still expected to pay approximately P2,286 monthly, with the current rate at P11.4295 per kWh.
RELATED: Meralco rates to decrease in October
The company on Tuesday, October 30 announced that it expects to earn over P43 billion in 2024, following a reported core net income of P35.1 billion for the first three quarters.
Current profits rose by 17% compared to the P30 billion earned from January to September 2023, which means Meralco earned about P18.681 million more each day during the same period in 2024.
Pangilinan attributed the growth in the third quarter to higher contributions from the power generation and retail electricity supply sectors, along with an increase in sales volume for the distribution utility.
RELATED: Meralco to exceed P43 billion profit this year
Calls to review Meralco pricing
Citing the Electric Power Industry Reform Act of 2001 (EPIRA), P4P urged the Energy Regulatory Commission (ERC) to check whether Meralco has been providing consumers with the lowest possible energy costs.
Section 23 of the law states that Meralco, as a distribution utility, has the “obligation to supply electricity to its captive market in the least costly manner.” The ERC should also approve the collection of retail rates.
Congress must also examine the factors contributing to the power distributor’s huge profits, P4P added. These include fossil fuel expansion and high distribution rates.
According to research by global energy think tank Ember, the Philippines relied on fossil fuels to generate 78% of its electricity in 2023.
While energy companies are profit-driven businesses, Arrances emphasized that their goals should be “tempered by the nature of utilities,” as they serve public interest.
“The law mandates that the prices are justified and serves the interests of the public. So far, it seems like Meralco’s interest is the only one being served, as consumers continue to struggle with high electricity bills,” he added.
Possible moratorium. Following the devastation caused by Severe Tropical Storm Kristine in several regions of the Philippines, the ERC said on Wednesday that it is considering a moratorium on electricity line disconnections and payment collections in areas declared under a state of calamity, as ordered by President Ferdinand “Bongbong” Marcos Jr. on Tuesday.
If implemented, the suspension would cover October to December 2024 and offer flexible, staggered payment options for electricity bills, according to the ERC.
“Such a pause is the least that can be done for Filipinos who doubly suffer from choices made by Meralco and other energy companies to source electricity from coal and other fossil fuels — through high power rates and worse vulnerability to climate disasters,” Arrances said.
As of October 30, the National Disaster Risk Reduction and Management Council reported that one-third of the 353 cities and municipalities affected by power disruptions from Kristine and Super Typhoon Leon have not yet had their power restored.
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Editor’s note: Manuel V. Pangilinan, CEO of Meralco, is also chief executive of PLDT. A unit under PLDT’s media conglomerate has a majority stake in Philstar Global Corp., which runs Philstar.com. This article was independently produced following editorial guidelines.
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