Clearly the nation’s energy sector has long cried out for a major overhaul. But this isn’t going to be easy with the country’s biggest power retailer saying it could file for bankruptcy. Meralco issued the statement after the Supreme Court issued a final ruling Thursday that effectively compels the power firm to refund millions of electricity consumers a total of P28.15 billion. Several admi-nistrations are partly responsible for this mess, but the blame game is useless at this point.
It has not helped that a controversy erupted recently over reports that the government, which has a 25.8 percent stake in Meralco, had planned to take over the firm. This could make any attempt by the government to help keep Meralco viable suspect. But the power firm has to stay afloat; any plan to overhaul the energy sector could collapse if Meralco goes under at this time.
Meralco is not the only major utility firm in big trouble. Residents of Metro Manila’s western sector continue to be burdened with inefficient water supply. Maynilad Water, the concessionaire for this sector, has failed to meet deadlines for expansion and full coverage of its service area. Despite inadequate water supply, residents have to pay higher rates than consumers in the eastern sector. Maynilad, which has been seeking a rate increase, has thrown in the towel and wants to give up its concession. Meanwhile, there is no relief in sight for the affected residents’ water woes.
Will electricity consumers also suffer as a result of Meralco’s financial problems? This concern the government must address.