Critical Thinking and Meralco

You've probably seen this Meralco advisory before.




But let's examine what it's trying to say:
  1. Electricity rate is going down.
  2. Meralco contracted more power producers to make this happen.
  3. Basically, they are good guys.

But did you know you should be either angry, annoyed or, at the very least, confused by this advisory?



Aside from the fact that the rate reduction is pathetically small. It's almost like they lied to your face, and don't care that you know about it.

From numerous advisories in the past, we already know that the generation charge is what they pay to power producers.

And yet despite Meralco supposedly contracting more power producers, they showed in this very advisory that the generation charge went up.

So basically, Meralco contracted more electricity, but the price still went up. How does that happen? Here's a few obvious ways:
  • They didn't really contract more power producers, it was just a bare-faced lie (very unlikely)
  • They contracted more, but it was a very small amount so power rates still rose; They just don't know how to do their jobs
  • They contracted more, but bought at a hire price; That's not necessarily malicious, but after that last rate-hike fiasco, who's inclined to believe them?

Regardless, our power sector needs a big shakeup.


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