Systems losses

The Meralco’s despicable treatment to its four million consumers was revealed by company president Jesus Francisco during the Monday’s investigation conducted by Joint Congressional Power Commission (JCPC).

Francisco admitted that Meralco passes on P500 million a year of its own consumption to consumers as part of its “systems losses.” And there is another plan to pass on to consumers the P14-billion debts incurred by Meralco.

Another reason why the power rates are so high is because Meralco buys a bulk portion of its power from two sister companies, which is way to costly compared to the National Power Corporation (NPC). These costs are passed on to consumers, according to Francisco.

While they were passing on the debts to its consumers, it was learned that eight top executives of the power company will be paid P97 million this year, while the officers and directors as a group will get P170 million.

They were indeed enjoying the multi-million profits while bleeding their consumers to death.

However, these things would not be possible if there is no conspiracy between Meralco and the Energy Regulatory Commission (ERC).

Francisco told the panel that passing on the debts to consumers under the “systems losses” was allowed by the ERC.