Meralco and PLDT: Marriage of Convenience?

There'll be no fireworks today. The Lopez group will continue to head Meralco. And sources say, that's courtesy of Manny Pangilinan, the top PLDT honcho. He entered the scene, reportedly as a "white knight" to save the diminishing hold of the Lopezes and prevent it from falling into the hands of San Miguel, led by Ramon Ang.

Meralco, undoubtedly, is a critical industry, a prized possession so to speak, for those who want to control the entire economy. It's just a power distribution utility, yet, it commands great power. It holds the key to our boom-bust economy, and failure to supply, means billions lost, or billions gained.

Why the Lopezes hate the guts of the San Miguel group is an enigma. Maybe because of Cojuangco's past. Why are they willing to serve Meralco on a silver platter for a local representative of a foreigner is beyond me. Is the Lopezes more than willing to serve a foreign master than let a local success continue the legacy of the firm? Pangilinan is the local representative of Salim of Indonesia and by entering Meralco, Salim has a majority stake in another country's power distribution utility. Government should have been more sensitive in the sense that power should have been viewed as one of the most critical and security-sensitive infrastructure that, control should be delimited to local control, instead of allowing this situation where the most critical sector has now been controlled, indirectly, by a foreign business entity.

But, as they say, business here is personal. And the Lopezes hate both Cojuangco (due to his Marcosian past) and Mrs. Arroyo (because she released her attack dog, GSIS President Winston Garcia who failed because of public pressure).

Now, I fully understand why GSIS wants Meralco.

On the reverse side, it's actually beneficial that a more effective management group heads Meralco. Meralco has had its fair share of financial hemorrhages and best to leave this with those who know how to crunch numbers rather than those who just know how to count profits.

Businessmen expect the PLDT takeover to lower electricity rates, which, I think, is not going as planned. Electricity prices here are more expensive than other Asian countries. And rates continue going up.

It remains to be seen how PLDT will fare now that they are the majority. Will Pangilinan, the "white knight" save the Filipinos from further price hikes. Or, will Big Capital with the "BIG PROFITS" in bold letters continue to be the rule instead of the exemption, being public welfare as paramount? Let's see in the next few months.