MANILA – The Manila Electric Co. reiterated that its rates have undergone a strict review process that ensures they are fair and reasonable.
The statement from the power firm comes after a lawmaker said that the rates Meralco imposes on its 7.7 million customers were more expensive than what rural electric cooperatives in the provinces charge their customers.
Philippine Rural Electric Cooperative Association (Philreca) Rep. Presley de Jesus said that smaller electric cooperatives only charge rates from P6.50 to P8 per kilowatt-hour, compared to Meralco’s P12 per kilowatt-hour.
In a statement to The Manila Times, the power firm said that allegations that it charges high rates were “misleading,” noting that it has been transparent in its monthly rate adjustments and has contextualized the reasons behind its movements.
“In fact, the company recently announced a significant rate reduction of 80 centavos per kWh for December, which effectively offset the combined increases in the past two months,” it added.
Meralco also said that it has been proactively securing the least cost supply for its consumers, with its power supply agreements being cited by International Energy Consultants (IEC) as the reason why rate increases over the past five years had been managed.
In comparing the prices of electricity in the provinces to Meralco’s, the power firm said that the allegations failed to acknowledge that the rates of private distributors and electric cooperatives across the country vary, and Meralco’s rates, which, according to the IEC, were “fair and reasonable,” are not the highest if the entire industry is considered.
“In addition, Meralco has consistently met regulator-set guaranteed service levels that translate to stable and reliable electricity service that benefit its 7.8 million customers,” it said.
Meralco also denies that it is encroaching in areas with established electrical franchises, saying that while some local government units and businesses approach them to take over due to high rates and unreliable service, the utility has been mindful and respectful not to serve them as these are covered by different franchises covered by Congress.
The electric utility has been under fire for allegations that its franchise has become too large and has been overcharging its customers, which the company has continuously denied.
Sta. Rosa City Rep. Danilo Ramon Fernandez proposed in a privilege speech that the utility’s mega franchise must be split into three smaller franchises to better serve its customers.
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