Government should not allow Meralco to raise electricity rates--no more!!!

Meralco planning another plot
to get money from Filipino Consumers

Sparrows should look into the plan of Meralco to raise their electricity rates this month.

After reporting a stellar year of profits, the utility company now wants to get more from us by raising their rates. Meralco has reported a consolidated core income of 5.8 billion. Fact is, Meralco reported a 169% jump in net income in 2009 and is targetting another 3% growth by the end of 2010.

Meralco's energy sales has even jumped to 14% in the first quarter of 2010 alone. And it attributes its sales jump to the increased prices in the WESM. Meaning, the WESM is actually giving Meralco astronomical income jump. The Commission on Audit (COA) even said that it is not justified for Meralco to increase its rates since it already collected more than 6 billion pesos from its customers.

What Meralco wants is for its consumers to finance even its personnel salaries which is now at 2 billion. What? Why will the consumers bear the cost of Meralco's executives and workers?

Meralco is not losing money. Fact is, it expects a further increase in income due to the rise of demand from the industrial sector (18.8%) and following, the residential sector (16.3%). Meralco even reported a very good income statement to the Philippine Stock Exchange. see link.

Let me give you why it is not justified for Meralco to increase its rates. Since its profits grew more than 12%, which is the allowed limit for Meralco in terms of profit, it is not justified for it to even salivate for another price increase. See a very interesting discussion here.

Even if Meralco is buying a higher rate from the WESM, it is still not justified for it to increase its rates since its profits have soared to the multi-billions since 2007, according to the COA report.

Meralco admits that NAPOCOR has sold power to them in a lower rate than before, but because of the rise of power rates in the Wholesale Electricity Spot Market, Meralco, as they say, has no choice but to raise electricity rates by 44 centavos.

The Energy department should abolish this WESM and instead, control the market. It can do so under its police powers and driven by public interest.

Instead of just providing government with an explanation, the Energy secretary Jose Almendras should ask WESM to justify why government should even allow its extended existence. The existence of WESM is beginning to harm the country and acting against the welfare of the People.

This is too much already. Meralco should even be divested of its franchise to operate a utility firm. Meralco is raking so much profits from us and they had the gall to tell us that they are raising electricity rates.

We already have the highest electricity rates in the region. Another electricity hike would affect businesses, not just households.

Government should look into this because this might be a clear case of sabotage. Remember that Meralco is now controlled by Pangilinan, who looks towards his Malaysian bosses more than he looks downward, to us, his fellow Filipinos.

How will we be able to recover from the economic slump with a very high electricity rate? How will we be able to transform this country into a viable investment site if prices here are higher than our neighbours in the region?

The Malaysian investors behind Pangilinan's "successful" takeover of Meralco are probably dictating this to their Filipino counterpart. They want our country to remain uncompetitive. It is probably time for Filipinos to regain Meralco from the clutches of foreign interference.

People should militate against Meralco if they push thru with their plan to raise electricity rates this month.

If the Aquino administration refuses to interfere with this issue or is helpless, then, I urge every Filipino to militate against Meralco by turning their lights off on August 30.

Let us express our collective disgusts against Meralco and to Manny Pangilinan, who is posturing as someone who cares for us, his fellow Filipinos, but continues to follow the dictates of his Malaysian overlords in Kuala Lumpur.

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.

People should protest against Meralco NOW!

I REALLY CAN'T UNDERSTAND THE LOGIC OF MERALCO. Crude oil price is now at the US$ 60 plus per barrel. Everywhere, companies, especially oil firms, have been lowering their retail prices. Now, what justifies a MERALCO ELECTRICITY RATE HIKE? Pang-inis ba ke Gloria?

It's time for everyone to stand up against this cocky electricity distribution firm. Among Asian countries, the Philippines has the highest electricity rates. This is too much already. The Lopezes should be stopped right this minute! Me utang pa nga kayo sa aming mga consumers na P 3billion plus and you're supposed to give it back to us.

Gloria should fire those at the Energy Regulatory Commission (ERC) for giving in to the pressure of the Lopezes to hike rates. This is too much!!!

This government, if it has any use to us, should do something to stop Meralco from imposing additional rates to us consumers. If Gloria and her minions remain inutile, we might as well, oust all of them and jail all of them, including the Board of Directors of Meralco.

Mga inutil! Can't you understand that Filipinos are suffering due to high electricity rates? If you're receiving a monthly take-home pay of 15,000 pesos, about 4-5,000 goes only to Meralco. And you're left with 10,000, yes? What is 10,000 pesos nowadays, with higher food prices and rent. 

Pinapatay tayong unti-unti ng Meralco at ng gobyernong ito na inutil sa kalagayan ng taumbayan.

What about Meralco?

The Supreme Court yesterday punished members of the Court of Appeals who reportedly took part in the GSIS vs. Meralco case bribery scandal. CA Justice Vicente Roxas was fired for violating the Canons of Judicial Ethics while his colleague, Jose Sabio, was suspended for 3 months. Other members of the committee who handled the GSIS vs. Meralco case such as Justice Myrna Vidal and Justice Vazquez were merely reprimanded and admonished. Meanwhile, alleged bribe giver businessman De Borja is to be charged with a crime by the DOJ.

So all participants were meted just punishment? I think not.

The Supreme Court did not answer the basic question of the People--did Meralco really gave bribe money to these justices? How many justices got bribed? And why did they not punished Meralco if it did, indeed, allegedly gave bribe money to influence the justices that led to that favorable decision?

How much bribe money changed hands when this case was being heard? And with this tainted decision, should it be proper for the Supreme Court to overturn the favorable decision? There should be a review of the GSIS vs. Meralco case.

The SC decision stopped short in identifying the conduit but never really probed deep enough to really identify who among the Meralco organization coordinated with De Borja in the alleged crime. I don't believe that this businessman acted alone. It is quite improbable for somebody like him to fork out 30 million pesos just because "he has personal interest" in the case? Surely, being a big-time operator, De Borja reports to a principal, which, has not been identified properly by the SC.

Government should order the Department of Justice, particularly the NBI, to probe deeper into this scandal and identify the shadowy figures involved in this mess. These people should be punished.

As of this moment, both Meralco and the GSIS have been trading legal shots at each other. Meralco took the first salvo by filing a criminal case against GSIS which it responded by countering with another case, this time, for malicious prosecution. 

It's getting messier friends and it impacts on the general perception of investors about the state not only of Philippine politics but of the business environment. 

Oil companies and Meralco: Big Players with Big Kapalmuks

Why do giant oil companies find it very hard to rollback oil prices, when small players can do it without batting an eyelash? Answer: they pay big bucks to government to protect their asses compared with what small players give as "tongpats". Remember that Shell, Caltex and Petron executives report to their global asses...err...bosses and they must report big profits; otherwise, as what Senator Kiko Pangilinan says they might as well abandon this tiny republic.

The energy undersecretary this morning admitted on national radio that these giant oil companies can't ask for recovery from losses anymore simply because they already re-coup whatever they incurred since July 2008. So, why are these giant oil companies still refuse to bring back oil prices to respectable levels.

Same as Meralco. You know, this crafty, little old abuser demands a 5-peso increase in their rates this month. I remember when GSIS President Winston Garcia was lambasting them and nearly acquired Meralco, the Lopez-owned utility firm justified the high price of electricity with the high prices of oil. Now that oil prices are falling, why is Meralco demanding for a rate hike? Kapal naman ng mukha ng Meralco!

We have the highest electricity rate and the highest gasoline and diesel prices in the entire Asia! These profiteers are doing their stuff to the detriment of the suffering masses.

Come to think of it...it's not only them who deserve the people's justice. We also must militate against food and rice traders who continue to sell high prices despite the falling global food prices. These people are so brazen in fooling us simply because we allow them to. It's time for the people to hit back at these people, especially Meralco. Meralco is the most vile utility firm ever to walk the face of this country. It should be partitioned and its franchise revoked by this government before it further cause destruction to the lives of the people.

A Few Questions to Mar Roxas

This summary is not available. Please click here to view the post.

Aboitiz and Garcia to benefit from Meralco takeover

Friends and colleague read this: http://tongueinanew.blogspot.com/2008/05/meralco-vs-mafia.html. It hits the nail in the head and reveals a ton of stuff about this government attempt to break Meralco.

As we wrote here, there's really an insidious plan to takeover Meralco, not to lower these electricity rates. No. What government wants is to give this firm to the Aboitiz and the Garcias of Cebu, staunch allies of Madame devil infant, Gloria.

As what a reader commented on Tongueinanew's blog, this is the highest tongpats ever!

Imagine something like this, bigger than the water concessionaire bidding a few years back.

This is probably the reason why there's a multi-million propaganda funds being brandied about by propagandists of Garcia and the Aboitizes. It's a miniscule amount compared to the billions they'll earn from breaking up Meralco.

WE SHOULD STOP GOVERNMENT FROM DOING THIS. YES, BREAK THE HOLD OF THE LOPEZES, BUT GOVERNMENT SHOULD NOT BE ALLOWED TO SELL THE FRANCHISES AND MERALCO NOW! IT SHOULD BE DONE AFTER THE MAY 2010 ELECTIONS, NOT NOW!

Garcia's Dream

Now, the cat is out of the bag.

Sensing no public outrage or opposition to government's plan, GSIS President Winston Garcia told the Inquirer that GSIS plans to break up the Meralco concessionaire franchise into two or more sub-franchises. He says it worked before, when government divided Metro Manila into two franchises. Why will it not work now?

However, here's the catch which would explain why Garcia wants to break Meralco free from the Lopezes--it's not good, says Garcia, that so much wealth has been concentrated in the hands of just one family. He says, everybody should earn from Meralco's franchise.

Well said Winston. So, it's not government who'll manage Meralco--it's still the private sector. Question--will the sale of Meralco be above-board? Being a lucrative one, so many predators will definitely ask for their share of the pot?

Winston's dream is commendable provided that the bidding for the sub-franchises will be above-board.

After Meralco, what now?

Is government planning to break the oil industry since this sector is also being blamed for inflation due to high gas prices? Is government also planning to break the rice/food trading industry since food prices are abnormally high also?

Miriam: Bomb Meralco (Just joking part 2)

I remember one quip that Miriam said during the dying days of the Erap regime. She was being asked if she'll honor her promise to jump in the Pasig river since events have proven her to be incorrect (of her previous "learned" assertion). The lady solon laughed loud and said that she just lied.

Yesterday, Miriam dropped another "bomb". She lambasted Meralco and accused it of maintaining "little mafia" groups. She then suggested to "bomb" Meralco.

I shudder to think of Miriam conducting trials at the International Court of Justice (ICJ). Imagine someone like her mediating between North and South Korea. Or something explosive like claimants of the Spratlys. This little dynamite will surely cause a maelstrom or spark an international war like what she nearly did when she lambasted the Chinese during the ZTE probe.

Such is our fate: we have irresponsible legislators who think highly of themselves as gods. We have government officials who are as haughty as the ones they accused of a crime.

Government propaganda against Meralco continued in high gear, as GSIS president Winston Garcia said that government is willing to buy the Lopezes out. If something like that happens, a buyout, surely we are in for a whole lot of trouble.

Expect Meralco to be pump-primed as a milking cow. Expect the giant utility firm to lose profitability in just a few months. And expect us, after two years, to be paying all the government shit afterwards.

Arroyo's Power Play in Meralco--worst than the cure

Some would probably laud Mrs. Arroyo for bringing it on with the Lopezes. In the case of Meralco, Arroyo's "crusade" against Meralco was predicated on (as her propagandists want us to believe) protecting the consumer against high costs of electricity. This time, however, it's different. Mrs. Arroyo and her gang of misfits are flirting with the media to justify a possible corporate takeover come May 27.

Some of my media colleagues, which include Manila times columnist Julius Fortuna, agrees with what Arroyo is doing right now. She's reportedly fighting what others say, is a megalith. The Lopez family has been in control of Meralco since 1986 and what Arroyo is doing is breaking the hold this aristocrat. This could be the start of a campaign to get rid of aristocrats such as the Lopezes.

Though I may laud government for doing this, I suspect this to be part of a greater, more sinister plot connected with charter change. Why?

First, the timing. It's just a month away from June, the possible month where government is expected to push real hard on charter change. Government needs millions, if not billions of lobby money just to see this thru. Question--why attack Meralco now when Arroyo has been in power for 7 years? Why now, when its just 2 years away from 2010 and just a month before chacha?

Second, the intention. Why attack Meralco now when there's a food crisis and a continuing probe on the ZTE and the Spratlys issue. Look, the public has already forgotten the Spratlys issue when its one of the most important legislation the Philippines should pass this year since the UN already gave us a deadline in 2009.

Third, the chosen mode of attack. Government wants a takeover. They're not resolving the issue of high prices through the Energy Regulatory Board (ERB). No. Government is using the issue as a justification for a takeover. Macapagal and Marcos failed to takeover Meralco during their terms. Arroyo is hopeful that she'll accomplish what his father failed to do during his time as president. Why?

Because a takeover of Meralco means billions of pesos to the Arroyos. Government propagandists say the high prices is directly a result of the "mismanagement" of the Lopezes. Maybe its true. Or maybe its not. But, will government control of Meralco solve this "management issue"? No.

Government is the worst administrator, the worst possible alternative to the Lopezes. What's government's plan for Meralco after ousting the Lopezes? Probably they'll sell the electricity distribution firm to the Chinese, as what they tried to do with our telecommunications and IT industries? Or maybe, just maybe, they'll use it as a milking cow, just like they did with RPN 9 and IBC 13?

TRUE, forcing Meralco to lower electricity charges is the most logical thing to do, given the high inflation of 8.6% and the other attendant problems being faced by the Pinoy right now.

BUT, if the solution of government is worst than the problem, then, maybe those who agreed on this plan should rethink their position and revisit history. History has shown that this administration is the most corrupt, the most greedy, the most brazen, the foremost violator of human rights and the most vindictive. If government takes hold of Meralco, they will not only have electricity but a REAL POWER TO COERCE OTHER COMPANIES to kowtow to their wishes.

Let me make myself VERY CLEAR--I am not a stooge of Meralco. In fact, I was among those who rallied last 2003 against the power firm. It's just that a government takeover of Arroyo's gang is a DANGEROUS PRECEDENT which could cost this country billions of pesos more than the 24 billion that the Lopezes reportedly earned from us since 2003.

Faeldon the lineman

I just heard In Justice Secretary Raul Gonzales asking for an investigation into allegations that Capt. Nick Faeldon served as a lineman for Meralco last November 29. Yes, the good soldier escaped allegedly posing as a lineman.

Well, I'm not surprised. With the low pay of soldiers nowadays compared with the millions being showered to their officers like Esperon, I am not surprised if Faeldon moonlights as a Meralco lineman. Or even a bill collector. Imagine, if you're a bill collector, you'll have thousands of pesos in your hands everyday. The only "threat" to your life probably comes from the dogs. Those wads of dough can probably buy a few handguns or maybe an M-16? That could be used for a coup, right Mr. Gonzales?

Hey, I heard that aside from being a lineman, Faeldon also worked as a balut vendor, a fishball vendor and a Bayantel Wireless Landline seller. Yes, he actually was a BAYANTEL Landline seller.

I have a challenge to Raul Gonzales---Mr. Secretary, are you sure that Dana Batnag is not Faeldon in disguise?Maybe you should call Dana and have her gender checked? Maybe she's Faeldon?

Have you checked maybe priest killer Norberto Manero is the renegade rebel soldier? They seem to look alike, except maybe for the hair? Ah, with photos of him sporting a killer hairdo, the most logical for Faeldon to do is shave everything off.

I bet that Faeldon is just out there somewhere. I heard from a reliable source that he's enjoying his life as palos. Yes, Faeldon is Palos. This should give Gonzales a cause to go to ABS-CBN and look for Faeldon.

Or maybe Faeldon is healing priest Suarez in disguise. They look alike right?

14.50 per kilowatt hours

In Korina Today, Oil Price Watch head Raul Concepcion said that an additional 9.50 per kilowatt hour will be charged by Meralco. The new rate will happen starting February. Expect also another round of price increases by as much as 6 pesos per liter. Concepcion said, they expect this due to the rising price of crude in the world market.

Wake up Mr. Concepcion. Look at the indexes today. The price of oil is decreasing. Yes, it reached 100/barrel. And some say it is the new base. However, don't help the big oil companies by saying that we should expect a 6 peso increase. You are unwittingly taking part in this nefarious scheme of conditioning the minds of the people.

Again, I repeat my previous plea to Arroyo---convene an economic summit now. Prepare for the impending economic crisis which will hit us as soon as the US economy plunges into deep recession. Convene it now. Plan for safety nets especially for OFW families who will be the first casualties. If you will not prepare now, you'll find yourself in the midst of a crisis which you will find hard to get out from.