Double whammy for poor Juan
There will be higher Meralco bills this month. (Inquirer, 7/5/12)
Media have been painting a rosy picture of our economy under the Aquino administration. But this purported economic growth is not felt by ordinary citizens.
Look at the increase in the prices of basic commodities, not to mention other goods and services. And now, another increase in the power rates, this despite their being already the highest in Asia, adding to the already heavy burden on the shoulders of the poor, hapless and long-suffering Juan de la Cruz. After two years of this administration, nothing is being done by the government to lessen this burden but to give it lip service. No wonder foreign direct investments are slow in coming.
I fully agree with Romeo Junia (“PBR: best for utility, hardly good for consumers?” Inquirer, 6/14/12 ). He said: “Since the (Performance Based Regulation) was adopted, Meralco’s net earnings have soared year on year: P3.1 billion in 2008; P6.3 billion in 2009; P10.1 billion in 2010; P14.8 billion in 2011. For the year 2010, its customer base grew by 3 percent; sales by 11 percent, but its earnings soared by 67 percent—which obviously came from rate increases rather than market growth or operational efficiencies.”
It is in the public’s interest that Meralco, being a public utility, should lower its electric rates. Why can’t Meralco at least invest half of its net earnings in 2011 in projects that can help reduce the price of electricity? Or is it already committed to fatten the wallets of its major stockholders? If other Southeast Asian countries can provide electricity at reduced rates, why can’t the Philippines? Or do we want to remain “the laggard of Asia”? Aren’t we ashamed of ourselves? No wonder foreign direct investments are slow in coming.
I find it interesting as well that in the billing details of a typical Meralco bill there is that item on “System Loss Charge.” With this “recoverable” loss, the simple question (if I were Meralco) that would come to mind is: “Why would I take pains to go after those stealing electricity (e.g., use of jumpers, etc.), after all, I can charge system loss to consumers?” I (Meralco) would rather sit back and relax, count my billions and laugh all the way to the bank.
This one really takes the cake. Is “system loss charge” subject to value added tax (VAT)? Take a look at your bill under the item “Value-Added Tax.” All I know is that except for some exemptions, all sales of goods and services are subject to VAT. But is “system loss charge” considered a sale of a good or service to the consumer? How can that be? Why then is Meralco billing the consumer for “system loss,” and why is this bill subjected to tax? Thus, not only is the consumer being charged for “system loss” by Meralco, also this “system loss charge” (neither a sale or a service) is subjected to VAT, which is again passed on to him! Double whammy for poor Juan!
—JESUSITO L. BUÑAG,
