Dominant power distributor Manila Electric Co., or Meralco, refuted allegations of unjust electricity prices because of a "monopsony."

Meralco VP for corporate communications Joe Zaldarriaga clarified that power rates in the Philippines reflect the true cost of electricity, unlike that of other countries' which are heavily subsidized by their governments.

In fact, the latest study of International Energy Consultants showed that Meralco rates are fair and reasonable and noted that Philippine power prices are higher compared to its neighbor countries due to subsidies provided by their governments, he added.

Meralco is also only one of several distribution utilities and electric corporations operating in the country.

"We have strictly abided by the rules and guidelines of our franchise as operations are heavily regulated by the ERC," Zaldarriaga added.

Meralco issued a statement yesterday to clarify the recent statements by ACT-Teachers Rep. France Castro and Laguna 1st District Rep. Ann Matibag.

"We already made clarifications regarding Congressman Dan Fernandez's statements, which were also reflected in the statements of Representatives Matibag and Castro," Zaldarriaga said.

The House members sought a review of the Meralco franchise for causing high electricity prices which is among the most expensive in the region.  

Competitive rates

Records show that Meralco's rates and service quality are among the most competitive in the country, according to a statement of the power firm.

The Meralco official said the company has always been transparent about its rates as well as causes of adjustments.

About 80 percent of it are pass-through charges that are remitted directly to power generation companies, transmission grid operator, and to the government for taxes.