As the shareholders of Meralco meet tomorrow for their annual meeting, I think it is time to put Winston Garcia in his proper place.
Weeks before, Garcia went on a rampage, complaining a lot of things about Meralco – from high power rates to failure of management to show him documents to Meralco purchasing power from Lopez-owned independent power producers (IPPs). When asked what he wanted to happen, he said that he just wanted a change in management, not a government takeover of Meralco.
His complaints led to the Joint Congressional Power Commission to convene and hear the side of Garcia and Meralco. The Power Commission, like most congressional investigations, led to nowhere, but a few curious facts were uncovered, like systems loss and imposing VAT on systems loss.
Earlier, I had posted that this issue, like the rice crisis, is a diversion. Let me expound further why it is so.
One: Garcia is barking up the wrong tree. Meralco cannot impose rate increases unless it is approved by the Energy Regulatory Commission, which is headed by a Gloria Arroyo ally, Rodolfo Albano. Garcia should instead petition ERC to reduce Meralco’s rates. This regime keeps on asking us to follow the rule of law, yet one of its lackeys keeps on ventilating on the wrong forum. “Bring it to the courts” is a favorite line by this regime, and it should walk the talk.
Two: Garcia’s allegation that the Meralco management is withholding important documents. As a board director, he should know what is happening to the company. And if he thinks the Meralco management is indeed withholding the documents that he needs, he should ask the courts to compel Meralco to produce these documents.
Three: The issue on systems loss is actually not a legal issue, but a moral one. The law allows Meralco to pass to its customers up to 9.5% its system losses. So if Meralco charges us 9.5%, it is not illegal. It can be immoral, but rule of law prevails.
Four: Meralco passing on to its customers its electricity expense. This is allowed by the law; heck, all businesses factor in electricity expense in the pricing of their products and services. Singling out Meralco is unfair, I think.
Five: Knowing that it can actually lower rates by petitioning ERC and removing/reducing VAT on electricity, this regime has chosen to do what it says the opposition does – trial by publicity. Why? I can think of several reasons:
1. The regime is trying to bury us with seemingly-real issues, which is a clear attempt to bury the real issues. It takes the initiative to set the issue and muddle the waters.
2. If you notice, the regime is trying to be populist nowadays. First, the rice crisis, then Meralco, and now text messaging. I question its populist sincerity since this regime could have brought up these issues way back in 2001, but it only did so now.
Both of these point to the same thing: the regime is trying to divert our attention from the real issues.
If this regime, through its lackey Winston Garcia, is serious about reducing Meralco’s rates, it should do so via ERC, not through the Power Commission, and certainly not through the media. Yet it has not done so, and I cannot help but think that this regime is insincere in this issue, and that leads me to conclude that this is just a diversion.
PS: I suggest that Garcia should instead attend to the problems of GSIS. He keeps on hitting Meralco’s management, while GSIS pensioners are crying havoc. Clean up your backyard first, Winston.
