Garcia’s Meralco gambit

Man at the Market

Jesse E.L. Bacon II

05/09/2008

The move of Government Service Insurance System (GSIS) President and General Manager Winston Garcia to force power distribution giant Manila Electric Co. (Meralco) to make public certain well-kept data and information about its operation elicited varying reactions from a populace both tired with exorbitant power rates and endless politicking.

Many, however, missed the point that Garcia just wanted Meralco to be forthright in its dealings with its stockholders in particular and its consumers in general. While the GSIS head has time and again emphasized that which he is demanding is simple courtesy on the part of the utility firm’s management by way of providing him those documents he had requested, many would rather be mired with the thought that his move is just politicking.

Granting without admitting that politics is one of the considerations for his move to force a showdown with the Meralco management ,let us at the same time examine the situation in a more circumspect manner.

Admittedly, the Meralco bill that every customer receives monthly reflects a very high power rate. This is an indisputable fact. In fact, comparatively speaking, the Meralco rate is one of the highest, if not the highest, in Asia. And for the people to react negatively to this is but natural. It is expected for who would like to be paying exorbitant power rates every month?

The question foremost in the mind of the Meralco consumers is whether the rate the utility firm is charging them is legal and above all moral. In this regard, Meralco cannot claim to be as white as snow because no less than the Supreme Court had found Meralco overcharging its customers, hence, that order for the Lopez family-owned firm to refund its customers by as much as P30 billion.

If Meralco had in the past been adjudged no less by the Supreme Court of overcharging its customers, is it possible that it is again overcharging its customers? No one would know, hence, Garcia’s request that he be shown certain documents to see for himself whether Meralco is indeed not overcharging its customers again. Unfortunately, Meralco management refuses to let Garcia have a look at those documents he had requested.

Why would Garcia be adamant about this? He is adamant because 25 percent of the total Meralco shares are owned by GSIS which he heads. A huge chunk of the GSIS membership are customers of Meralco. It is for this reason that Garcia while wanting to ensure that GSIS stakes in Meralco earn substantial income, he does not want the very members of GSIS shortchanged by Meralco at the same time.

Indisputably, it is within Garcia’s prerogatives as member of the Meralco board to scrutinize whether the GSIS funds he represents are well protected and is truly earning for the pension fund. But at the same time, it is Garcia’s bounden duty to always see to it that the interests of the members of the GSIS are not compromised as well. This is the balancing act Garcia had to do as head of GSIS and as a representative of the GSIS in the Meralco board.

If Garcia is doing this for the sake of politicking, I doubt if there is anything that in the end he can harvest for his own political benefit out of this exercise. So, it would be more beneficial to all Meralco consumers if they give Garcia their all out support in his board room battle with the other Meralco owners in the board to force the utility firm to be more transparent in its dealings with its customers.

Meralco as a listed company is duty bound to let everyone know how it arrived at in computing the power rate . This demand for transparency has become more compelling in light of the declared profits earned by Meralco during the first quarter of the current year alone which it said is 23 percent higher compared to its profit for the same period last year.

(jelbacon@yahoo.com for reactions)

Back to top

For comments about this website:Webmaster@tribune.net.ph
The Daily Tribune © 2006