PALACE ON MERALCO BROUHAHA
‘Opening of books to bring down power rates, not Meralco’
By Lira Dalangin-Fernandez
INQUIRER.net
First Posted 16:16:00 05/16/2008
MANILA, Philippines -- Malacañang reiterated on Friday that moves to scrutinize the books of the Manila Electric Company (Meralco), the country's biggest power distributor, are aimed at bringing down the costs of electricity, not the company.
"This isn't about Meralco," Press Secretary Ignacio Bunye said. "It is about responsible business practices that [are] critical to our economic development."
Bunye explained that low power costs played a major part in the economy competitive.
"In order to do that, we have to take a hard and serious look at all parts of the electricity generating distribution chain," he said.
The government, through the Department of Trade and Industry, has asked the Energy Regulatory Commission to stop Meralco from passing on to its customers the systems losses generated from its operations, among others.
Alongside this move, the Government Service Insurance System (GSIS), one of the major shareholders of Meralco, has demanded that the company's books be opened and made public.
Critics have accused the government of looking to takeover the utility.
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