Cross subsidies removed We subsidize lifeline
Still being paid No renegotiation
Geothermal Natural gas
Exercise of market power Business strategy of Aboitiz et al
Voltage 5 Rural electric cooperatives next target
EPIRA allows DU to buy up to 50% of electricity supply from related company UP College of Engineering studied Meralco’s buying pattern, showed that rates could fall by PhP2 / kWh if Meralco didn’t favor its sister gencos
RORB used to be 8-12% Raised Now PBR
Dismissed WESM market abuse case Ineffective to stop over-recoveries Ineffective to stop market abuse Ineffective to stop violation of Meralco’s contractual obligations
NPC assets sold way above fair market value New owners thus have to charge more for electricity to recover cost ▪ Kahit hindi pa sila fully paid Simple change in ownership will already necessitate higher electricity rate Case of Agus Pulangui
VAT even on systems loss Corruption and mismanagement also makes kuryente expensive Government Attitude towards Consumers: Pnoy told Mindanawans: If you don’t want brownout, pay more.