Since Congress created the problem of a behemoth in the energy sector, some members of the House of Representatives believe that a law is needed to break up electricity distributor Manila Electric Co. or Meralco into smaller several companies.

The move to review the Meralco mega franchise has gained ground in the larger chamber as it was identified as the cause for the power firm having grown too big.

Legislators are looking at the so-called monopsony character of the firm in the power  business.

Monopsony is a market structure in which there is only one producer for a particular product.

It is the counterpart of a monopoly, where there is only one seller or producer in a market.

In a monopsonistic market, the single buyer has significant market power and can influence the terms and conditions of trade, including prices.

The law, as Laguna Rep. Dan Fernandez pointed out in a privilege speech, was tweaked in a way to allow the giant utility firm to pour in money to obtain shares in power generation companies.

Technically, Meralco would not own generation companies but it actually has dominant shares in those.

Fernandez sought the start of a review of the mega-franchise and divide it into three as its sheer bigness is already leading to poor service and alleged abuses.

In a manifestation that followed Fernandez's speech last 7 November, Laguna Rep. Ann Matibag said perennial high power rates are among the reasons that the country failed to achieve its potential in attracting investors.

"We are all aware that our country has very high electricity rates and in fact, one of the highest electricity rates not only in Asia but in the whole world," Matibag said.

"We are also aware that our country could not effectively attract foreign investors despite efforts of the government, even by the President himself, to encourage investors from other countries to come and put their businesses here," she said.