Meralco doesn’t pay for the electricity it uses


Manila, Philippines — (METERING.COM) — May 19, 2008 – The Manila Electric Company (Meralco) does not pay for the electricity it uses in its head office, branch offices, call centers and computer rooms, and says that if it is forced to do so, the cost of electricity supply to its customers will have to be increased.

The provisions of the Philippine’s Anti-Pilferage Act of 1994 allow electric distribution companies to use one percent of the power they purchase from generation companies, and to pass on the cost to consumers. Meralco points out that every business includes its electricity consumption as part of its operating expenses, which are passed on to customers, and believes this should be applied to Meralco too, even if its business is the provision of electric power.

A Meralco spokesman says that the additional costs of installing meters to measure the company’s actual consumption, plus the need for additional staff to handle the meter reading and billing, would result in an increase in the tariffs it presently charges customers.