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lovephileo's review
Investment Sector: Emerging Markets Submitted by Lovephileo 
, WEB CONSULTANT / PASTOR
at LIGHT OF THE WORLD CHRISTIAN CENTER
6 months ago Tags: power rate meralco electricity napocor power consumption Add Tag |
Meralco-Philippines' largest electricity distributor just a week ago increased power rates and would not even dare to reduce its rate though the company posted a 23% increase in its Q1 earnings.
In a disclosure to the Philippine stocks Exchange (PSE), Manila Electric co.(Meralco) enjoyed a 23.2% growth in net income to P655 million year-on-year.
But consumers are paying so much for the electricity. Since then, Philippines is the second-ranked country in Asia in terms of power consumption.
Government officials, senate and congress are in for a grilling Meralco against the power rates next week. Meralco initially explained that adjustment in the utility's generation, distribution charges, system loss and transmission charges resulted in a P0.9753 per kilo-watt hr increase in rates.
However, it finally shows that Meralco owes P50 B to National Power Corporation (Napocor) when NPC is even selling power to Meralco at a low prize.
Yet, why will customers be made to pay for the debt of Meralco to NPC? Is there something wrong with the financial statements and commercial transactions of the company? Is there irregularities with the selling and billing of power consumptions to consumers?
Meralco, owned by Don Eugenio Lopez Sr is sick and tired of the business once told the public and wanted to just sell it to the government at the right prize.
Meralco's share closed lower at P78.50 from P81.00 previously.
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