MERALCO A FRONTLINER: The Manila Electric Co. (Meralco) is at the end in the long line of entities generating, distributing, retailing and using electricity. The utility firm is the component in the power system that deals directly with the consumers.

It is Meralco’s misfortune that being the frontliner, it must bear the brunt of the complaints of the consuming public involving rates and quality of service.

In fact, in the raging debate over impending electric rate adjustments, the public ire is focused on Meralco as if the power firm were solely responsible for the coming increase and that the entire bill collected would go to it.

Not that Meralco is blameless, but in fairness to it and to let the chips fall where they must, the public should be told the entire story of power generation and consumption.

Until now, nobody’s doing this. Even Meralco has not been telling us the whole story. Somebody credible (maybe media?) should do it, so consumers would at least know what’s going on and who their tormentors are.

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BASIC DATA NEEDED: Anybody who attempts to tell the unabridged story would have to begin with an objective situationer to give perspective to the presentation.

How much power do we need for all households, industries and other big and small users? How much supply can the system generate, how much is it actually generating, and how much of this output is used? What provisions are in place for meeting the growing demand at least in the next two decades?

How much does it cost at present to produce one kilowatt-hour of electricity and for how much is it being sold at the end of the line by Meralco and other retailers?

Is the claimed generation or production cost fair? Can it be lowered by making the producers and the system more efficient?

Assuming the generation cost is fair, what is the price difference between the point of production and the point of sale? In other words, how much does the electricity cost when it leaves an Independent Power Producer (IPP) and how much does it cost when a consumer like Aling Nena and her brood of six in Tondo uses it?

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HONEST COST ANALYSIS: An honest cost analysis is likely to show that there is a chasm between the generation cost and the retail cost of electricity. It should be easy for concerned officials in government to secure the needed data and audit the figures.

The next questions are: Is this gap between generation cost and retail cost of electricity fair? If it is fair, is it affordable? If it is not fair, what is being done about it? While something is being done about it, do we force consumers to pay the exorbitant rate under protest?

If the retail cost of electricity is high because the system is inefficient, and the executives running it and the government officials overseeing them are corrupt, should the high cost of inefficiency and corruption be passed on to the captive consumer?

A way should be found by the highly paid PhDs, consultants and the like in government to trim the cost of such a strategic item as electricity and assure its constant, consistent and efficient delivery.

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IPP — SPECIAL RAMOS CREATION: Alas, when we look at the big picture, we see some disturbing lumps and bumps all the way from generation to consumption of electricity.

We start with the so-called IPPs, a favored breed of businessmen created by then President Fidel V. Ramos newly clothed by Congress with emergency powers to tackle the emergency at the time.

Under the sweetheart contracts given them by Mr. Ramos, the IPPs were assured that all the power they could generate would be bought at guaranteed prices.

It turned out, however, that these IPPs are not exactly models of efficiency. As a result, their cost of production comes out rather high. This high cost of production is passed on to the Napocor (that buys their power wholesale) and on to retailers and eventually to consumers.

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PPA DOUBLES ELECTRIC BILL: Not only that. Napocor pays for the entire supply delivered by the IPPs even if some 30 percent of it remains unused and therefore wasted. Unlike other merchandise, electricity is not stored for future use.

The cost of the wasted electricity is included in the costings and eventually finds itself flowing down the line until it reaches the bill of the household consumers. It is reflected in the PPA (Purchased Power Adjustment) line in our electric bill, a cost that Meralco passes on to consumers.

The PPA is usually as much as the basic charges claimed by Meralco, in effect doubling the monthly bill. But not all that amount in the bill pertains to Meralco.

Bakit nagkaganoon? This is one of the questions many of us want former President Ramos to help answer. Mr. Ramos should be asked to stop delivering speeches abroad and come home to help find a solution to the explosive problem.

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JANCOM DEAL HANGS: The Supreme Court’s reiteration of its Jan. 30 ruling that the $350-million incineration agreement between the government and Jancom Environmental Corp. is valid is not the end of the hot garbage-disposal story.

The tribunal itself knows that. It is gingerly walking around the issues for fear that it might get dragged into the sizzling controversy. In fact, Associate Justice Antonio Carpio, who was in the division that heard the case, had to inhibit himself to evade expected criticisms.

Environment groups opposing the Jancom contract said that Carpio was among those who had helped prepare the legal papers for the deal and later pushed it when he was chief legal assistant of President Ramos.

They added that it was not enough that Carpio inhibited himself. According to them, the rules required that the case be raffled to another division when such a conflict-of-interest issue arises.

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SHOT WITH DEFECTS: In media briefings, the organizations opposing the Jancom deal distribute documents purporting to show that the incineration contract violates the Clean Air Act, that the deal is overpriced (P443 billion instead of the P53 billion required by law), the bidding was rigged in favor of Jancom and no bid bond was required of it, the expected tipping fee of $80 per ton and landfill fees are exorbitant, and that two groups using the name of Jancom are fighting over the juicy contract.

The Supreme Court merely said in its decision that the contract was validly entered into, without saying categorically that it was binding upon the signing parties and third parties.

The court also skirted other important legal questions raised. It did not rule on whether it was grossly disadvantageous to the government as claimed by the oppositors. It pointed out that the papers were still awaiting the signature of President Arroyo, without which the contract is not perfected.