Gov’t should run public utilities

Echoes From

BY JOHNNY DAYANG

While Congressmen and Senators are silent about the rising cost and inefficient management of public utilities, like electricity, there exists silent clamor for government to take over their operations.

Considering that electric power industry is vital to the economy, it is strongly felt by many that it’s time for the government to exercise its inherent responsibility to protect the public from excessive costs of electricity.

Owners of the biggest power company who received not less than P20-billion annual profit don’ t really care about the suffering being experienced by our people. Worst, the controlling stockholder of our country’s biggest electric power firm is an Indonesian business magnate, representing the Salim Group. 

It’s unfortunate that our government has not set up a policy that would require Meralco to provide infrastructure that could withstand natural calamities such as typhoon.

 

Our government, under the administration of President Aquino, should not solely rely on the competence of the Securities and Exchange Commission in determining the control by foreigners of our vital industries, particularly our public utilities to avoid the burden of monopoly. 

I don’t subscribe to a policy that would allow any enterprise to monopolize. In fact, we should always adhere to a system that promotes democratization of vital industries and of wealth.

 

Public utilities are so necessary. Its services are supposed to be provided by the State to level off its utilization, both for the rich and the poor. It’s not true in our country. More often, the rich, both foreign and local, are making full use of public utilities for profit. Owners of electric power firms, for instance, would have to recover 6 percent first of the amount they spent for the share of stock they buy, and then a guaranteed profit of least 10 percent. 

Of course, all these incentives that they would enjoy will be charged to the consumers by raising the prices of their product. Most of the charges in Meralco’s bill cannot even be understood any more by the consumers.

The electric power cost is only one the serious problems of our people. Basic commodities keep on going up while peoples’ income remain low.

Prices of rice, fish, chicken, pork, beef, vegetables, fruits and other prime commodities are soaring high. Big malls are cornering the businesses of small groceries and sari-sari stores.