Private firms running public utilities for profit — through government-sanctioned public-private partnerships (PPPs) and other privatization schemes — should be state-regulated at the very least, and fully stopped at best. For years, these profit-driven PPPs have burdened the public with high user fees, said consumer network Samahan at Ugnayan ng mga Konsyumer para sa Ikauunlad ng Bayan (SUKI).
In a press conference Wednesday, SUKI spokesperson Amihan Mabalay pointed to how the Electricity and Power Industry Reform Act or EPIRA has saddled consumers with some of the highest electricity rates in Southeast Asia. “After 24 years, EPIRA did not bring down electricity rates as promised,” said Mabalay. “Instead, consumers continue to be burdened by rising costs as Meralco and other private power firms pass on charges for generation, transmission, and distribution to households.”
“There is no real competition under EPIRA,” Mabalay added, citing IBON research. “Only a handful of oligarchs dominate the power industry — namely Aboitiz Equity Ventures (Aboitiz), San Miguel Corporation (Ang), and First Gen Corporation (Lopez).” She noted that Meralco, the largest power distributor run by the Pangilinan Group and Gokongwei, reaped a staggering Php45.1 billion in net income in 2024. It is followed by Visayan Electric Company and Davao Light and Power Company, both owned by the Aboitiz group.
Meanwhile, a low-income household consuming around 200 kilowatt hours per month must pay around Php2,000, as each kilowatt-hour costs Php13, said Mabalay – eating up a large portion of already meager incomes. Mabalay said this pattern holds across other essential services: water, transportation, internet and telecommunications, and even health, education, and housing — all charge high rates or fees purportedly for quality and efficient service. But in reality, these services are costly, insufficient, and often inefficient, especially for poor and informal communities. In stark contrast, the private firms behind these utilities continue to post soaring profits.
Mabalay recalled that privatization in the Philippines began under the Ferdinand Marcos Sr administration, as part of structural adjustment programs — including liberalization and deregulation – pushed by the International Monetary Fund and World Bank. These policies were justified as ways to build necessary efficient infrastructure, reduce government spending, pay off its loans, and attract more foreign investments.
“But it’s clear who really benefits from privatization,” Mabalay emphasized. “Not the people, but big business and the government that gets kickbacks from utilities run for private gain. Privatization must stop.”
Mabalay joined other concerned groups and advocates in sharing testimonials against privatization, highlighting the ongoing and looming issues with public-private partnerships involving tycoons Manuel Villar’s PrimeWater Infrastructure and Ramon Ang’s NAIA Infrastructure Corporation. Other speakers included representatives from the Water for the People Network, Kalipunan ng Damayang Mahirap, PARA-Commuters Network, Inklusibo, Migrante PH, Migrante International, Kabataan Partylist, ACT Teachers’ Partylist, and Gabriela Women’s Party.
