‘HIGHWAY ROBBERY IN BROAD DAYLIGHT,’ REMULLA SAYS ON MERALCO’S BID TO HIKE POWER RATES

  House Assistant Minority Floor Leader Gilbert Remulla today said the planned 116 percent increase in power rates for residential consumers under the Manila Electric Co. franchise is “highway robbery in broad daylight” and should be opposed at all cost.

He warned that Meralco’s plan could endanger its bid to renew its franchise should it proceed with the increase in power redistribution rate. Meralco is in the process of renewing its franchise and its application is now on the second reading at the House of Representatives.

“ Meralco might forfeit its chance to renew its franchise because certainly, many congressmen whose constituents are directly affected by this imminent increase would strongly oppose this plan,” Remulla said. 

            Remulla said he fully agrees with the assessment of Bagong Alyansang Makabansa (Bayan) that Meralco is taking advantage of the inherent flaws in the Electric Industry Reform Act in order to hit its eight percent target in profit margin.

            This is totally unnecessary especially at this time when people are reeling from severe unemployment and dire financial straits because Meralco is already enjoying a modest three percent profit margin, Remulla said.

            “Meralco is already enjoying a three percent profit as a power redistribution franchise servicing Metro Manila and its peripheral provinces and I was informed that it is really trying very hard to hit its eight percent markup. This is highway robbery in broad daylight especially in these very difficult times,” Remulla said.

            Remulla said that he would call for an inquiry on this matter as he pointed the need to plug serious loopholes in the Electric Reform Act.

            “There are serious flaws in the Electric Reform Act which should be amended in order to protect the ordinary consumer. In the meantime, Meralco should seriously reconsider its plan,” Remulla said.

February 20,2002