Bayan Muna (BM) and Koalisyong Makabayan have again called to ban cross-ownership of large businesses, such as Meralco, in the production and distribution of electricity. This trend has resulted in skyhigh electricity rates as the so-called mechanisms to safeguard the welfare of consumers against the greed of these businesses are useless.

BM reiterated this call after Ferdinand Marcos Jr said in his State of the Nation Address or SONA that his regime will review the Electric Power Industry Reform Act (EPIRA).

Makabayan has long denounced EPIRA because it privatized a basic social service and prioritized profit over service. In recent years, it has continuously exposed and condemned “cross-ownership” by the big bourgeoisie in production and distribution as it is not prohibited by the law. House Deputy Minority Leader France Castro of the ACT Teachers Party, and candidate for senator, said the cross-ownership of distribution companies in energy plants guarantees them a large profit, especially when plants are being closed down simultaneously and supply is thin.

“They reduce the power supply by forcefully closing (plants) to compel distribution companies to buy more expensive energy from the spot market, resulting in an increase in charges that burdens consumers,” he said.

“If the distribution utility also owns the generation company, it will be to its financial interest to pay a higher generation cost. In other words, cross-ownership brings about a conflict of interest that the distribution utility will resolve to fatten its pockets rather than lower electricity rates to consumers,” Makabayan said.

One of these companies is Meralco, which owns a significant number of plants that is also its source of supply.

Ever since it was enacted in 2001, the EPIRA has been opposed by those who never believed that privatization was the solution to the high charges and faulty service. Contrary to its lofty promises of electricity bills, rate increases have been unbridled in the last 23 years. From ₱4.87/kwh in 2000, rates has more than doubled in 2010 to ₱10.35/kwh.

The electricity bill is currently averaging ₱12-₱17/kwh in different parts of the country. For a family in Luzon consuming 200 kwh per month, this would mean an electric bill of ₱1,890.32, when Meralco’s bill was ₱9.4516/kwh. (It was at ₱11.60 in July, and will increase to nearly ₱14/kwh in September.)

This is an especially heavy burden on workers on minimum wage. It consumes 14.25% of their wages, which is fixed at ₱13,268/month.

Groups and consumers said EPIRA should have long been repealed to ensure cheap and affordable electricity service for all.