Philippines to Sell Petron Stake To Help Finance Budget Deficit Under Section 10 of the law, MORE is authorized to exercise the power of eminent domain insofar as it may be reasonably necessary for the efficient establishment, improvement, upgrading, rehabilitation, maintenance and operation of its services., In comparison, the franchises of other distribution facilities, such as Mactan Electric Company Inc., extension of franchise granted to Tarlac Electric Inc., renewal of franchise granted to Angeles Electric Corp., renewal of franchise granted to Ibaan Electric Corp., First Bay Power Corp., Dagupan Electric Corp., Island Country Telecommunications Inc., Olongapo Electricity Distribution Co. Inc., Visayan Electric Co. Inc, Cotabato Light and Power Co., La Union Electric Co. Inc., and a few others, merely allow them to exercise the power of eminent domain insofar as it may be reasonably necessary for the efficient maintenance and operation of services.. Revisiting the discussion on the need to review and overhaul the Electric Power Industry Reform Act (EPIRA) is timely. Lopez had supported Ferdinand Marcos in his presidential bids during the 1960s. Webresult of the globalization policies of privatization and commercialization of water. Is PLDT considered as Monopoly? (2023) - investguiding.com Meralco Other big power producers are San Miguel Corporation, which also has a 27 percent stake in Meralco and the Aboitiz group, which owns power plants and other distribution utilities. In 1999, the company formed Meralco Energy, which specialized in providing energy-related services to industries and other large-scale energy users. Meralco In 1994, Meralco began working with Spain's Union Fenosa, which acquired a 9 percent stake in Meralco, to lead a new reorganization effort in the mid-1990s. By the early 1990s, the Manila market became subjected to planned blackouts lasting up to eight hours per day and longer. all the regulatory and adjudicatory functions covering the energy sector. Meralco is led by Chairman and CEO Manuel M. Lopez, whose family, through direct and indirect holdings, retains control of some 25 percent of the [] It benefits the company as it is able to profit from and include large amounts of consumers money in its cash flow. Malacanangs legalistic excuse, to the effect that the Energy Regulatory Commission (ERC) is an independent agency and not subject to the presidents control, misses the point since what people are asking for is for Mr. Aquino to display his moral authority by demanding that Meralco roll back its charges. EPIRA was supposed to limit profit-making in the public interest. for the efficient establishment, improvement, upgrading, rehabilitation, maintenance and operation of its services. That allows the franchise holder the to take over the assets of a competitor company, an act repugnant to the constitution. WebMeralco joined this new market, backing the creation of First Private Power Corporation, building a 225 MW plant in Bauang. Don't change history It is unfortunate that in the course of the highly emotional debates about the PPA, those who were involved in implementing the draconian martial law measures of Mr. Marcos have chosen to once again make fresh a dark and traumatic time in our family's history. The following year, Meralco joined with Union Fenosa to launch the IberPacific consulting firm. Father of hundreds gets sperm donation ban from Dutch court In December 1992, its affiliate First Private Power Corporation won the bid for the 225 MW Bauang plant. Moreover, the cross-ownership provision of EPIRA allows for vertical integration of generation and distribution, resulting in an even more monopolized structure of energy provision in this country. Meralco joined this new market, backing the creation of First Private Power Corporation, building a 225 MW plant in Bauang. MSC also put up Philippine Petroleum Corporation to make lubricating oil and bought a controlling stake in PCIBank. 9209. Oscar M. Lopez Manuel M. Lopez Presentacion L. Psinakis Eugenio Lopez III For Eugenio Lopez Jr. Lopez Holdings Corporation16/F North Tower, Rockwell Business Center Sheridan, Sheridan St. corner United St., 1550 Bgy. "The plan is immediate, within the next six months," said Mr. Recto, who is in charge of the government's privatization efforts. Principal Competitors: State Power Corporation of China; Huaneng Power International Inc.; SembCorp Industries; Perusahaan Listrik Negara, PT; Hongkong Electric Holdings Ltd.; Korea Electric Power Corporation. In 1930. first major American enterprise to be Filipinized when a group led by Eugenio Lopez Sr took over the company. By then, the company served nearly 4 million registered customers--with a total customer population of some 19 million. But in so doing, we find it totally disgusting that an attempt is also being made to rewrite history with falsehoods. After the Ramos administration sweetened the contracts with independent power producers (IPPs), power rates went up as the government agreed to a take or pay provision, sovereign debt guarantees, and to pay for the fuel being used by IPPs. By the beginning of the 1950s the company had fully restored service to its former metro Manila network, which included some 39 towns and cities. 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Manila Electric Company (Meralco The name Meralco is an acronym for Manila Electric Railroad and Light Company, which was the companys official name until 1919. Who really owns Meralco? In the meantime, Meralco continued to expand its distribution business, linking up a growing number of towns and cities in the metro Manila region that had been unable to keep up with the surging demand for electrical power. In the final analysis, the controversy in Iloilo is about the public interest. Now the Aquino government is doing the same with government hospitals and the MRT and LRT commuter train systems. Electricity came to Manila in 1892 with the founding of La Electricista, which began providing electricity to residential customers. For his part, Transportation Secretary Jaime Bautista said authorities would continue to investigate the incident, as they had already sought help from the National Intelligence Coordinating Agency (NICA) to investigate the matter. Generating capacity in the key Luzon grid is now highly concentrated among three major groups: San Miguel 30 per cent, Aboitiz, 17 per cent, and Lopez, 15 per cent. Instead of Meralco being a leader in transforming the energy sector, its recent history shows a preference for dirty energy from coal and fossil fuels. But that unfortunately has not been the case. Besides, the entire process of returning the shares was thoroughly reviewed as described above. That P10 billion is what Meralco is now trying to gouge from its more than five million consumers, with the average residential unit expected to see its bill increase by close to 900 pesos a month in the next few months. Take part in our reader survey and help us be better. If it chooses the latter, a good start is to resolve to adopt a bidding process more competitive for renewable energy producers and to develop a coal divestment plan for MGen. The facts: FTI, which was once a government-owned asset, was privatized by Cory Aquino in 1986 through Marcos presidential decree to sell government firms. Thus, the grantee of the privilege is duty bound to obey at all times the terms and conditions of the franchise law, and with the overriding obligation to promote the public good. Don't miss out on the latest news and information. By providing an email address. Please abide by Rappler's commenting guidelines. Authorities identified a fault current as the cause of the power outage at the Ninoy Aquino International Airport Terminal 3 on Labor Day, but an investigation is still ongoing to determine the root of the issue which impacted some 9,000 passengers. The claims that the Lopezes own Meralco, that they launched black propaganda against Macapagal to topple his administration, that they asked the Marcos government to help save Meralco, and that they conspired with the Aquino couple to oust the dictator all need context. Every time the government commits to pay for something, guess who actually pays for it? Meralco's growth in the 1960s was financed solely on its superior credit standing in international capital markets, without relying on government guarantees. It lasted less than 10 minutes. But that unfortunately has not been the case. What happened to FPHC (and the Lopez family) is similar to a village bully buying your house and paying you in installment out of the rental from the house. Through FPHC, we account for 20% ownership of Meralco. By 1987, First Philippine Holdings was able to reschedule and rearrange most of its debt load by selling some assets. Sign in to listen to groundbreaking journalism. Click on this image to answer. The Koalisyon Bantay Kuryente, a reputable consumer advocacy group, has reported the experience of brownouts and overbilling and is set to file complaints to the ERC. Prior to its return to its previous owners, Meralco was owned by the government which set up the Meralco Foundation from public funds and since Mrs. Corazon Aquino did not make them pay, logically, Meralco should belong to the Filipino people today. The Lopez groups of companies, on the other hand, bought most of the big power plants formerly owned by the National Power Corporation. Data generated is not shared with any other party. The government never owned Meralco, before or during martial law. The Lopez family, one of the country's most prominent, also controls conglomerate Benpres Holdings and other businesses. The second point is, Meralco Foundation was not set up with government funds. As issues surrounding their operations continue to serve as a PR disaster, the company is being pressured to make amendments to appease consumers concerns and better its services. Meralco grew strongly under Eugenio Lopez's leadership, adding new power plants to increase capacity as its customer levels topped 500,000 by 1968. Father of hundreds gets sperm donation ban from Dutch court I agree to the Terms of Use and acknowledge that I have read the Privacy Policy. Meralco, abuse of power: A case of monopoly, rightly or It blames hot weather, kite flying, and rising electricity consumption among households for these incidents, but the occurrence of outages even in the absence of the demand from large consumers such as malls point to the fact that Meralcos grid and facilities are substandard. A number of misinformed statements have been made by various sources ranging from a paid ad in this newspaper on June 3, 2002, remarks by the daughter of the late dictator Ferdinand Marcos to forces led by a former coup leader and agit-prop spokesmen from radical leftist groups, about how the Lopez family regained their position at Meralco. Read on to know more about each claim: On owning Meralco. | via @ralphobina pic.twitter.com/DYPjsxipng, According to Manila Electric Co. (Meralco) Manager Engineer Noel Espiritu, the power went out as the circuit breaker was tripped due to a temporary overflow of the current, as he cited a fault current.. The 41-year-old Dutchman, identified by de Telegraaf newspaper as Jonathan Meijer, was forbidden to donate more semen to clinics, the court ruling said. Privatization, by whatever name Build-Operate-Transfer or Public-Private Partnerships was touted to be the solution to the inefficient, monopolistic management by government of public utilities and services. Philippine Ambassador to the United Kingdom Edgardo Espiritu on Thursday said that the Lopez family paid the government of then-President Corazon Aquino to Meralco has always been a forward-looking company. Customers and employees of Meralco have also been given the chance to own Meralco shares through an affordable stock purchase plan. But this power should not be given to companies so that they can take over existing facilities, as that would be anticompetitive as well as a violation of the constitutional right of the company that owns the said facilities. What EPIRA has done is to put the Philippines in the record books. Gatchalian said that Congress could exercise its oversight function to revoke Meralcos franchise after it said it would appeal the P19-million fine. It is specifically aimed to ensure the quality, reliability, security and affordability of the supply of electric power. That plant came on line in 1994, with commercial operations starting the following year. Falsehood no. jurisdiction and control over, all public utilities. Manila Electric Company First of all, Mrs. Aquino was not involved in the reacquisition by First Philippine Holdings Corporation (FPHC), previously known as Meralco Securities Corporation (MSC) of some of its Meralco shares. This service use cookies. Meralco also began diversifying, launching Meralco Securities Industrial Corporation in order to build a petroleum pipeline between Batangas and Manila in 1967, and founding, in 1969, Philippine Electric Corporation in order to produce line transformers and other electrical equipment. In 1989, the company launched a large-scale investment program to upgrade its distribution system. They are, today, still owned by Napocor. Call 896 6000. The revolution of 1986 that deposed the Marcos regime and brought Corazon Aquino to the presidency also restored the Lopez family's former holdings, including Meralco. Privatization Its primary objective is to benefit the public; the rights or interests of the grantee, the franchisee, is secondary. When Marcos declared martial law, the Lopez family was stripped of its assets, including its control of Meralco. Electric distributor Meralco has also been allowed to pass on changes in the rates of power it buys. He said the last audit was in 2017, and not all of the audit's recommendations were implemented. Source: International Directory of Company Histories, Vol. On top of the deferred generation charges, the Energy Regulatory Commission (ERC) also directed Meralco to postpone the collection of P300 million in generation costs, which further reduced this months generation rate by about 11 centavos per kWh, Valles added. Privacy Policy, Felipe, Cecille Suerte, "Lopez Family Trade Barbs on Meralco Ownership,", "Meralco Embraces Future with Confidence,", "Meralco's Appeal Against 28b Peso Refund Rejected Company Says It Has No Money to Repay Customers,", Robles, Raissa Espinosa, "Manila's Electric Bill,", Sayson, Ian C., "Manila Electric Posts a Record Deficit,". By 1972, it was worth P2.8 B. Its the people who pay for these through taxes and increases in the rates and fares. By the early 1950s the company boasted more than 200,000 customers. horror stories of questionably high electricity bills, DOE orders Meralco to explain P47 fee for paying bills online, Meralco denies midnight deals with ERC on 7 coal power plants, Hundreds of Indonesians evacuated from Sudan arrive in Jakarta, Indonesians told to stay alert after magnitude 7.3 earthquake, Indonesias ruling party backs provincial governor Ganjar for 2024 presidency, Mary Jane Velosos mother appeals to Indonesian govt anew to act on case, Australia rescues Indonesian fishermen from desert island after cyclone. Renewables are the only sources of energy compatible to climate and ecological imperatives. |m. This is essential for public utility franchises, from telecommunication to electricity distribution companies, that need land to build facilities that would be good for the public. The fault current was said to have activated the fault indicator, which then tripped the circuit breaker to prevent the current overflow from damaging the airports system. It would also effectively lessen Meralcos hold on the power industry as a monopoly and reduce incentives for overcharging consumers. One important fact in this connection is that First Gen Corp, which belongs to the Lopez Group, owns the 1000 MW Santa Rita Power Plant, one of the plants that shut down. That is why we really need to study this thoroughly). Central to the water problem, is to recognize that the problem is not water scarcityper se, but who owns and controls the water systems and resources. Meanwhile, Super Radyo dzBB reported two brief power outages at Terminal 3 on Monday afternoon. Instead, as the Meralco price hike scandal reminds us, it has brought about the worst of all possible worlds: skyrocketing power prices and a powerful corporate oligopoly that has no hesitation in gouging the consuming public. CONTRIBUTED INQ, The author is former dean of the Ateneo School of Government and Professor of Constitutional Law, University of the Philippines College of Law. (READ:Meralco denies midnight deals with ERC on 7 coal power plants). Yet there has been only a 2,223 MW net increase in installed generating capacity, and this was mostly committed before EPIRA took effect. Again in the same section, MORE is allowed to acquire such private property as is actually necessary for the realization of the purposes for which this franchise is granted, including, but not limited to poles, wires, cables, transformers, switching equipment and stations, buildings, infrastructure, machinery and equipment previously, currently or actually used, or intended to be used, or have been abandoned, unused or underutilized, or which obstructs its facilities, for the operation of a distribution system for the conveyance of electric power to end users in its franchise area. In contrast, as worded in their respective franchises, the distribution utilities already mentioned are given the authority simply to acquire such private property as is actually necessary for the realization of the purposes for which the franchise is granted, without specifying in detail the properties to be acquired. The amount should be specified as a separate item in the consumers bill. Take part in our reader survey and help us be better. It also continued to add capacity, adding new power plants in a five-year, P 45 million investment program started in 1950. This promise has yet to come to life and up to now the opposite is true. Given the fact that the country may need a total additional capacity of 14,400 MW in the next few years, this speaks badly of the private sectors ability to meet the countrys needs under the framework of EPIRA. MISSING CONTEXT: Cory Aquino stopped FTIs operations after Indeed, by May 2001, the company, which had seen its request for a fee hike rejected amid a sales slump, reported a net loss of more than P 2 billion ($38 million) for 2002, prompting members of the government to call the Lopez family's management of the company into question. The consuming public needs him in his capacity as advocate-in-chief. Meralco's rates were among the lowest in the world. It restructured the power sector from a vertically integrated state monopoly to a sector that allows competition for some subsectors (i.e. The word ESTIMATE should have been clearly written on the consumer bill when estimating usage. This warning came in the wake of a deluge of complaints before the Energy Regulatory Board against the longtime power distributor after furious consumers in Metro Manila experienced what they call a bill shock, or the spike in their monthly bills. On Meralcos role in energy transformation. Puno, (Chairperson), Sandoval-Gutierrez, Corona. Meralco was purchased by Meralco Foundation, a private entity set up without public money and, in fact, without any capitalization at all. Since they have the power to determine who gets the contract and what are the provisions of the contract, they must be getting something out of it; some high government officials must be personally benefiting from the awarding of these contracts. Meanwhile, Meralco's core power distribution business continued its growth. Thirdly, on the allegation that "Mrs. Aquino did not make them pay", Mrs. Aquino couldn't have made FPHC pay because it was, as explained above, merely reacquiring shares that were not paid for by Meralco Foundation. grant provisional relief on motion of a party in the case or on its own initiative. But according to Sen. Benigno Aquino III, son of former President Corazon Aquino, it was the Supreme Court that ruled in 1991 to return to the Lopezes their Meralco shares that were not paid by Meralco Foundation. It is designed to demonopolize the energy sector and allow only qualified players to operate the industry. ), As to how it was damaged, this happens when a fault current passes through it - this high amount of current. Given the multiplicity of governmental functions and the magnitude of its concerns, the state will be hard pressed to operate public utilities as efficiently as most business organizations. We have heard horror stories of questionably high electricity bills from fellow customers. The basis of the reversion was reviewed by then Secretary of Justice Sedfrey Ordonez and former Chief Justice Claudio Teehankee who separately gave opinions that it was fair and just that the unpaid Meralco shares should be reconveyed to FPHC. Meralco Meanwhile, Meralco's own power capacity continued to grow, reaching 184 million kWh by the outbreak of World War II. Finally, we can read about how these great companies came about with Company Histories.. Call 896 6000. 1 - Mrs. Aquino (then) returned Meralco to its previous owners without making them pay despite the fact that both Meralco's generation and distribution facilities were earlier paid them by the government for about P1.2 billion.
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