Monopoly is power
By Connie Veneracion on Thursday, May 15, 2008 at 5:57 pm in business, government, Meralco, money
I remember reading news reports a decade or so ago, when unusually high temperatures seared Texas, quoting US government officials’ advise that residents turn their air conditioners on to avoid heat strokes. If I remember correctly, it was the same year when London residents experienced unprecedented high temperatures and commuters complained of perspiring inside the train. The equivalent of the London temperature then is what we know as Baguio weather.
Then and now, I’ve wondered if we will ever hear our government officials advising us to keep our aircons on. If anyone did, I would laugh. No, I would smirk and make endless scathing remarks rather. The Philippines experiences worse temperatures during the summer months but only the very rich dare to keep their air conditioning on 24/7. The poor can’t even afford air conditioners, much less the power they consume. In this country, air conditioning is a luxury—not an available solution even when people can hardly sleep at night because of the heat.
The recent revelations in the Senate about why we get those horrendous electric bills every month is shocking to many. Apparently, despite the fact that the item “systems loss” has been in the billing statement month after month, very few really bothered to dig into what it means. I have. According to the Manila Electric Co.’s customer service unit, it refers to what is naturally lost during transmission between the source and the distributor.
Even then, I knew it was a lie or, at best, a half-truth. I knew that, more than that, “systems loss” means we pay for the consumption of those who install jumpers and similar contraptions. In short, instead of taking pains, and spending money, to ensure that connections are legitimate, Meralco takes the easy way out by simply passing on the losses from the thievery to the rest of us.
We know now that it is even worse than that. Not only are we paying for Meralco’s bad debts, we are also paying for its operating cost as well as the unconscionable salaries of its officers. I don’t get it—4,000 supervisors and 3,000 rank-and-file employees? So there are supervisors with no employees to supervise? What kind of supervisor is that —a pretend supervisor or a joke?
All these years, we have been at the mercy of Meralco. As been so succinctly pointed out by many, that’s what happens when a monopoly is allowed to exist. It is doubly painful when the monopoly pertains to a public utility.
What I can’t understand is why it has taken all this time for the government to look more closely at the glaring abuses committed by Meralco. The post-Marcos Congress has been there for over two decades and nothing really serious has been done about Meralco’s extortionist rates except to pay some lip service over the usual bickering and finger pointing between Meralco and the National Power Corp. that we have witnessed in the past.
Remember the time when Meralco was ordered by the Supreme Court to refund overpayments it exacted between 1994 and 1998? Remember how it threatened the public and the government by saying it might be forced to close down? Businessmen called it playing hardball, but that was really just a euphemism for blackmail. That was in 2002. In 2004, Meralco said pretty much the same thing to pressure the government to approve its request for higher electricity rates.
Statistics have shown that over the past decade, the Philippines’ electricity rates have been far higher than those in other Asian countries, including the rich ones like Singapore. When we consider the standard of living and paying capacity of our population, it doesn’t take much brains to realize how badly we are being squeezed. The average Singaporean earns many times over yet he pays less for his electricity. Meanwhile, the average Juan and Juana who can hardly put food on the table three times a day is forced to pay more.
There are also figures to show that the Visayan Electric Co., Cebu Electric Co. and Davao Light charge less than Meralco does. So, when Meralco starts boasting about the socialized rates to benefit the small consumers, I wonder if they really believe the crap that they’re saying or it’s a tongue-in-cheek kind of thing.
Anyway, since the Senate hearings are still ongoing and those Meralco officials are still under oath, perhaps the senators might as well ask if we are also paying the salaries of house maids and personal drivers of Meralco officials. It isn’t an unheard of practice in big corporations so I’m wondering if the same crap goes on in Meralco. Instead of paying out of their own pockets, personal expenses are passed on as corporate expenses with the result that maids, yayas, cooks and personal drivers are on the corporate payroll. If no one asks, we’ll never know, will we?
By the way, if you read last Tuesday’s column, I just want to say that I am currently using dial-up Internet because PLDT’s DSL service is STILL DOWN. PLDT DSL service was restored this morning. And that, in itself, is a hell of a story.
Comment by Carol B.
Made Thursday, 15 of May , 2008 at 11:07 pm
I really pity those who rely on Meralco for electricity. Sabi ko nga sa mga kapatid ko kung meron lang akong extension cord na makakaabot sa kanila, iniabot ko na sana para dito na lang sila kumuha ng kuryente at kahit ako na ang magbayad. I really go crazy every time I compare the amount they pay to meralco vs what I pay for my electricty. Their house is less than 25% the size of my house but the amount they pay for is x2 sometimes x3 of what I pay (ave. $60/mo). All our appliances use electricity. Their kilowatt consumption is not even half of mine. Crazy di ba?
I think monopoly is one thing but there’s more to it. Just like in Manila, we don’t have a choice but to buy our electricity from the crown corporation who is the sole provider in this part of Canada. Crown corps are company owned by the queen of england and run by the government. Don’t ask me how she owned them. I think the people (the final consumers) has a lot to do with the affordability. It’s like the government officials run the company pero nakatali ang kamay nila sa kagustuhan ng mga consumers. The public here are really active in scrutinizing the financial reports of public companies. Kung malaki ang bottom line nila (companies) at humingi sila ng rate increase sigurado maga-alsa boses ang tao. Kung negative naman siguradong makakarinig din sila sa mga tao. I hope something good for the consumers would come out of this ingay made by the senate. Sana the senate’s goal is in line with the public’s goal. Sana hindi nila ito ginagawa in preparation for GMA’s retirement in 2010. Meron pa bang mas gagaling sa retirement fund na may streams of cash (in the form of dividend) that would make your bank account fat enough to support your kaapu-apuhan and at the same time charge to the company your costs of living including travels?
Comment by Tom
Made Friday, 16 of May , 2008 at 12:10 am
These are the effects of the pathological concentration of wealth.
Comment by chris
Made Friday, 16 of May , 2008 at 12:27 am
You’re going to like them even less after I tell you this:
My dad tried to bring import solar panels and an electric generating windmill a few years back. It was HELL, we got blocked at every step of the way, from customs to some ghost inspectors who wanted to know exactly what we were going to use them for. We finally gave it up, at a loss of thousands of dollars. Talking to a customs inspector I had eventually befriended, she said that there was an unwritten rule to block electric generating goods, at the bidding of Meralco higher ups who had pull at customs. Sheesh.
Comment by d0d0ng
Made Friday, 16 of May , 2008 at 1:41 am
Nakakatakot ang corruptions dito sa Pinas. And the consumers are paying the price. World Bank momentarily stopped funding of the second phase of Mindanao road projects when the local contractors-bidders colluded among themselves by overpricing by at least $10 million their bids on a project that was estimated only by $33 million.
This would have been unchecked if not for the foreign World Bank. There is that pervasive business culture among Filipinos businesses of passing the padded expenses (patongs) to the end user, ultimately the taxpayer.
This is again demonstrated in Meralco case. Normally, pricing is based on product cost plus margin. Not anymore in Meralco pricing model. It has passed on all its inefficiency costs from Bad Debts to System Losses Due to Pilferages and Theft. Not only that, it has passed on to the paying public the monstrosities cost not otherwise done in regular business. This included the high compensation of its officers and directors, salaries and benefits of people not directly related to power generation and distribution. On top of that, it has passed on to the public its own power consumption.
Garapalan talaga!
Kaya nga ang pinoy mag-abroad nalang!
Comment by Lala
Made Friday, 16 of May , 2008 at 8:00 am
Nakakaawa ang Pilipinas! Ang hirap kasi sa gobyerno natin, 100% mga sinungaling ang taong namamahala - from the president down to the lowest baranggay official. Mana mana kasi eh.
Personally, feeling ko, nagpapalapad ng papel lang ang mga senators. Malapit na ang eleksyon no?!? I think sa Philippines lang merong campaign period that starts 2 or 3 years before the actual election date.
Isa pa, kaya naman hindi maka angal ang mga consumers sa atin kasi ginawa na ring bobo ng mga government officials! Yan naman ang gusto nila. Maging bobo lahat ng pinoy para walang maka angal sa kanila. Only the few educated and morally upright lang naman yung nakaka angal and yet hindi rin naman nila pinakikinggan unless meron kang expose like that of ZTE and the likes na doubtful din ang mga agendas.
I am currently based here in Malaysia because of my husband’s work. Dito sa lugar namin, since its really humid, lahat halos ng bahay naka aircon. Like ours, lahat ng kwarto dito sa taas, air conditioned pero ang bills na binabayaran ko every month with one aircon consumption plus the other electrical appliances, less than a thousand pesos.
Sayang ang Pilipinas! No wonder, marami na talagang gustong umalis. Nawawalan kasi ng choice. I’m hoping against hope na sana nga sincere yang mga senators na yan sa ginagawa nilang aksyon regarding that meralco thing. Harinawa mali ang iniisip ko na it’s just for show. Kelan ba may natapos yang Senate na inumpisahan nila? Baka drinking session pwede pa:D
Comment by jin kazama
Made Friday, 16 of May , 2008 at 9:15 am
Bukod dun sa mag-abroad na lang tayo, ano pa kaya ang magandang solution para dito sa problem natin?
Seriously.
The People Power Revolution of 1986 may have successfully ousted Marcos and his hooligans, but there may be conspiracy theories directly linked his ouster, totoo man o hindi. The type of conspiracy theory our shameless politicians do brazen-faced these days: when there’s a revelation about some scandal whatsoever, those trapos use it as a springboard to flaunt their bad english along with their pot bellies and “We will, aaaaaaaaaaaaa, look into this matter, aaaaaaaaaaaa…” press. None of these trapos have the Filipinos best interests in their agenda.
I would like to stick to the ideological side of the 1986 People Power. Kung hindi makikialam ang middle class just like they did then, walang mangyayari. The thing is, wala nang gustong makialam. We are too engrossed nowadays to make a living kasi ang hirap nga naman talaga ng buhay dito. And the youth of today have nothing more ideological to cling to. Iba na ang measurement nila ng human achievement. Iba na ang culture nila ngayon. With the proliferation of call centers, nursing schools and other practical-easy-money-course bullshit , there is suddenly an easy way to earn money. Never mind na wala tayong matinong teachers for a better educational system, magca-caregiver na lang ako may pera pa. Never mind na wala na tayong matinong doctors for better medical services, magnu-nurse na lang ako may pera pa. Ganun na ang mentality ngayon. We no longer have an idealogy, or a dream worth fighting for (thanks to our uber corrupt country). So, can we expect them to fight for the future generations the way our parents did back in 1986? Can we rely on them to get involved and make a stand on our issues the way our parents did back then? Can we honestly expect ourselves to rise to the challenge the way our parents did back then? Let’s seriously ask this question: WHAT DO WE DO FROM HERE?
Reality sucks, i have to admit. And I admit it is much more reasonable to go abroad to Canada and other countries where ALL our hardwork are very much well compensated, financially and otherwise. E paano naman yung mga kababayan natin na hindi kayang mag-abroad? Pababayaan na lang ba natin sila? Paano naman itong Pilipinas? Pababayaan na lang ba natin ito? When the going gets tough, we do not get going? We just go to another country of golden opportunities? GANUN NA LANG BA? We cannot claim that we love our country (HELL, i don’t like our country anymore and I’m only 30, but still i don’t want to abandon it) if we cannot fight or care for it and our citizens (so bullshit yang mga Fil-Am na yan who do lip service na “I’M PROUD TO CALL MYSELF A FILIPEENOW!”. Part of being one is to deal with these socio-politcal issues, like the current Meralco issue.).
Tayo ang nagbabayad para sa lahat ng mga kawalanghiyaan ng gobyerno at mga private corporations like Meralco. And we do not get the services we deserve. As Ms. Veneracion has put it, we get 3RD WORLD SERVICES, or probably worse than that. Then we have to really search for a better solution. These kinds of problems are eye-openers sa mga sakit ng ating lipunan. WE EVEN IMPORT RICE FOR GOD’S SAKE! What happened to us?
It is great that we have these kinds of technology now. Not because we can rant and rave indiscriminately, but because it creates a large community who are wise and sympathetic enough to realize that there there are problems that need to be addressed, ASAP, not only for our own benefits, but for everyone as well.
My apologies for really pouring a lot of frustrations in this blogspot i know it has a bit of immaturity and bias into it. So I thank everyone for having the patience to deal with my ravings.
Again, my thanks. Mabuhay tayong lahat.
Comment by cris
Made Friday, 16 of May , 2008 at 9:38 am
I am talking from experience because I have a business and all the profit is eaten up by this unjustifiable high rates of Meralco electricity.
Mirriam Santiago’s comments about Meralco, “Dapat pasabugin ang
Meralco,” is true enough!
Dapat sana’y pandagdag na sa pagkain ng aking ng pamilya mapupunta yung pera pero hindi sa swapang, abusado at manlolokong Meralco pa nabubulsa eh!
Sana po let’s unite to oust this evil Meralco company na pabigat sa mga pinoy! I know God is not sleeping, the universal law of karma will fall on them sooner.
Connie, thank you for airing my side.
Comment by Gloria
Made Friday, 16 of May , 2008 at 11:04 am
kung maraming add-ons ang billing system ng meralco, mas marami ang Sorsogon Electric Cooperative. mas dami bulsang binabayaran kami eh. mahal ang bayad, bulok ang serbisyo — only in the Philippines! hayyy
Comment by Connie Veneracion
Made Friday, 16 of May , 2008 at 11:05 am
Chris, it is based on the same principle that attempts at developing alternative sources of fuel don’t go anywhere. Oil companies block all moves.
Comment by Tom
Made Friday, 16 of May , 2008 at 1:55 pm
Re #6. I respect and admire your opinion. It is nice to pour out one’s feelings knowing that someone out there is listening. I must be one of those FILIPEENOWS you mentioned.
As far as the Meralco issue is concern, this is where I feel that advocating to change our form of government to a parliamentary system with a sectoral representation as its structure is sorely missed. What do our current politicians know of generating energy? Seems to me, the closest thing they could do is word a law that nobody understands.
Yeah, the Romanesque way of legislating is outdated.
Comment by BlogusVox
Made Saturday, 17 of May , 2008 at 2:14 pm
Monopolistic abuse of utility companies exists because there are more FilipiNOs than FilipiKNOWs. They take advantage of our ignorance. Not only do the corporations have dirty hands but even the government that suppose to police these businesses.
Comment by Tom
Made Sunday, 18 of May , 2008 at 3:45 am
“Like the weather, everyone is talking about the storm but no one seems able to do anything about it.”
Comment by JMonreal
Made Sunday, 18 of May , 2008 at 4:12 am
Connie’s idea of cultural revolution is what we need in the Philippines. How or where do we start from here?
Can our OFWs be a force to this change? Did I read it right that money remittance to the Philippines by the OFWs is the 2nd largest industry in our country? Why not persuade the parents, relatives and friends to vote for candidates who are honest and dedicated to serve the Filipino people? Maybe the OFWs should come home in force and vote during elections if they really care about our country. This might not be a big factor, but at least we have something to start with. Any ideas out there?
Comment by ed villanueva
Made Sunday, 18 of May , 2008 at 5:26 pm
Jmontreal,its true that the OFWs with its number is something to be reckoned with,but the problem is they are too busy to tend their needs and of their immediate families,and with no apparent leader insight that they can believe and trust ,there is nothing much they can do to convince their relatives to opt for change,The corrupt officials are well aware of this that is the reason why we still have political dynasties and corrupt officials who are in the public office as long as I my elderly father can remember.The idea here is present them a trusted leaders and they will do the rest.
Comment by jin kazama
Made Monday, 19 of May , 2008 at 8:29 am
Re: # 14 Dumaan ka lang sa tramo makikita mo yung streamer ng City Hall Officials ng Pasay starting with Peewee Bayona Trinidad. Halos lahat ng susunod na officials dun e puro Bayona. Katabi halos ng streamer na iyon ay usual pile ng tambak na basura. Kapal, ‘no? Si Belmonte ng Quezon City hindi pa naman yata ganun ka-garapal. Well, probbably not in the same league as with Mathay. Then, again…