Many thought that it is a loss for MERALCO if it gave-up its large consumers with a power consumption of 1 MW or more (and allow them to have a freedom to choose its own power supplier) since a big chunk of its consumers are industrial and commercial users which utilize power of more that 1 MW.

But it is important to realize that MERALCO has been into this kind of business for more than 100 years. They know their nature of business and they will not make an decision that will cause a loss in their business. I will not consider this decision as a loss for them, but rather, a strategy to gain more.

I’m not updated about the speculations made by various business analysts about this issue. But I would rather rely on the information given to me by a friend of mine who works for MERALCO.

MERALCO does not earn so much in supplying power to these large consumers. Actually, they loss most of the time due to the regulation. They, instead, earn better from the wheeling charges charged to these consumers by delivering power. And whether they buy their power from MERALCO or directly from the generating companies, they will be still paying for wheeling charges to MERALCO.