POWER CRISIS BY DESIGN: How Meralco and San Miguel’s Broken Promises Are Leaving Filipinos in the Dark

Wazzup Pilipinas!?

In the simmering heat of another Philippine summer, the burden of ballooning electricity bills has become all too familiar for millions of households. Yet behind the cold numbers on your monthly Meralco bill lies a tale of betrayal, manipulation, and a deep-rooted system designed to protect profits—at the cost of the public’s welfare.

At the epicenter of this unfolding crisis is a delayed promise: a 1,200-megawatt baseload power supply from Excellent Energy Resources Inc. (EERI), a subsidiary of San Miguel Corporation (SMC). The Department of Energy (DOE) has confirmed that EERI’s failure to deliver on time will again cause tight power supply conditions and drive up prices at the Wholesale Electricity Spot Market (WESM). And who bears the brunt of these price hikes? The already overburdened Filipino consumer.

But make no mistake—this is not a mere accident. It is part of a pattern.

A Vicious Cycle of Delay, Denial, and Deception

This is not the first time Meralco and SMC have been in the spotlight for questionable conduct. Back in 2022, when fuel costs surged, SMC’s subsidiaries SPPC and SMEC sought to terminate their Power Supply Agreements (PSAs) with Meralco, citing unsustainable operations. The Energy Regulatory Commission (ERC) denied the move, but SMC went to court—and won. Soon after, these same companies returned to Meralco’s bidding process, won again, and are now again failing to deliver.

This leaves Meralco with a convenient excuse to buy from the WESM—where prices are notoriously high—then pass on the additional costs to you, the consumer.

A System Built for Corporations, Not Citizens

Year after year, Meralco—the country’s largest power distributor—finds itself at the center of scandal after scandal involving questionable rate hikes, overbilling, and contractual violations. Yet accountability remains elusive. Despite repeated failures, its 25-year franchise was recently renewed, signaling to the public that delays, broken contracts, and skyrocketing rates are business as usual.

Even more alarming: Meralco continues to eye expansion into other franchise areas, such as BATELEC II in Batangas, potentially bringing its flawed practices to even more communities.

The game is rigged. The rules are bent. And the referees are either silent—or complicit.

The Cost of Silence

Every broken contract, every delayed power delivery, every unexplained surge in your electric bill points to a deeper truth: our energy sector is no longer governed by public service. It is steered by private conglomerates who bend rules, break promises, and pass the consequences to powerless consumers.

The power crisis we face is not the result of unforeseen events or bad luck. It is by design.

A Call to Action: Investigate, Audit, Reform

PARE (Partners for Affordable and Reliable Energy) is demanding more than just answers—we are demanding justice.

We call for a full, independent audit of Meralco, covering:

All active and terminated PSAs

Rate applications and price adjustment mechanisms

Regulatory Asset Base (RAB) and capital expenditures

Operational and maintenance expenses

Contracting history—especially with habitual violators

But an audit alone is not enough. The Energy Regulatory Commission must finally do its job. Delayed PSAs should trigger public penalties and supplier reevaluation—not silence and backroom excuses.

Moreover, the House Committee on Energy, chaired by Rep. Lord Allan Velasco, and the Senate Committee on Energy, led by Sen. Pia Cayetano, must hold a joint congressional inquiry to investigate how major players like San Miguel wield their influence. It's time to ask the hard questions: Are current procurement mechanisms delivering affordable and reliable power—or just reinforcing corporate monopolies?

Power to the People

This is not just about electricity. This is about fairness. This is about a right. This is about justice.

We urge every Filipino to stay vigilant. Hold Meralco and San Miguel accountable. Demand transparency. Demand reform. Because the Filipino people deserve more than broken promises and bloated bills. They deserve a power sector that serves them—not exploits them.

No more excuses. No more passes. No more powerless consumers.

By Partners for Affordable and Reliable Energy (PARE)

It’s time to reclaim control. Not just over electricity—but over truth, justice, and our future.

The lights may still be on—but the system is broken. And it’s time to fix it.

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